Exploring Hydrocarbon Depletion
NEW! Members Only Forums!
Access more articles, news & discussion by becoming a PeakOil.com Member.
(Reuters) - The Federal Deposit Insurance Corp said on Friday these banks were seized by their regulators:
* In the largest failure in months, Chicago's ShoreBank was acquired by Urban Partnership Bank in Chicago. ShoreBank, a notable community development bank, had $2.16 billion in assets and $1.54 billion in deposits. The FDIC and Urban Partnership Bank entered into a loss-share transaction on $1.41 billion of ShoreBank's assets. The closing will cost the insurance fund $367.7 million.
* Community National Bank At Bartow in Bartow, Florida, with about $67.9 million in total assets. CenterState Bank of Florida, National Association, Winter Haven, Florida, will assume Community National Bank At Bartows' $63.7 million in deposits, as well as about $51.9 million of its assets. The failure will cost the insurance fund about $10.3 million.
* Independent National Bank in Ocala, Florida, with about $156.2 million in assets, was also acquired by CenterState Bank of Florida, N.A., which will assume the deposits and buy the assets. The FDIC said it entered into a loss-share agreement with CenterState Bank of Florida, N.A. on $119.7 million of the assets. The failure will cost the insurance fund $23.2 million.
* Imperial Savings and Loan Association in Martinsville, Virginia, with about $9.4 million in total assets. River Community Bank, National Association of Martinsville, Virginia, will assume the bank's deposits and its assets. The failure will cost the insurance fund $3.5 million.
... The panic over the bank began last week, after Afghanistan’s Central Bank ousted Kabul Bank’s chairman and the chief executive officer on revelations that the bank had lent hundreds of millions of dollars to allies of President Hamid Karzai and poured money into risky real estate investments in Dubai. Investment losses paired with a possible run on the bank could bring down the bank, which is a major player in the nascent, American-fostered financial system and which administers payments to government workers and some security forces.
SAN FRANCISCO (MarketWatch) -- Horizon Bank of Bradenton, Fla., became the 119th U.S. bank failure of 2010, according to the Federal Deposit Insurance Corp. on Friday. Bank of the Ozarks will assume Horizon's $164.6 million in deposits and purchase its $187.8 million in assets. The bank failure marks the 23rd in Florida this year. The cost to the Deposit Insurance Fund is $58.9 million, FDIC said
Afghanistan’s central bank yesterday seized control of the troubled Kabul Bank over concerns about possible financial irregularities, including the purchase of more than US$150 million (Dh550.9m) of Dubai property.
The central bank governor also announced that Kabul Bank’s top two directors and shareholders were under investigation.
The crisis has flagged concerns about the handling of funds from Western donor countries, channeled through a nascent commercial banking sector that the United States has encouraged Afghanistan to build and which is tied closely to Karzai's family and members of his inner circle.
A widespread perception among Afghans that Karzai's government is corrupt will be a major issue at Saturday's parliamentary election, which the Taliban has vowed to disrupt.
Georgia’s Community & Southern Bank picked up $800 million in deposits as it acquired three of the six U.S. banks that collapsed this week, bringing the failure count this year to 125.
Banks in Georgia, New Jersey, Ohio and Wisconsin were closed by regulators, according to statements on the website of the Federal Deposit Insurance Corp., which was named receiver. This week’s failures cost the agency’s deposit-insurance fund $347.6 million.
“Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage,” the FDIC said in each of the statements.
Banks are failing at a faster pace than last year, which saw the most failures since 1992, as real estate values remain depressed and economic recovery stays sluggish. Regulators closed 140 banks last year. The FDIC’s list of “problem” banks climbed to 829 lenders with $403 billion in assets at the end of the second quarter, a 7 percent increase from the 775 on the list in the first quarter, the FDIC said last month.
September 24, 2010 - Florida has experienced more banking failures than any other state in the nation. Today’s failure of Haven Trust Bank Florida becomes the nation’s 126th banking failure and the twenty-fourth in Florida. Almost 20% of the nation’s total banking failures have now occurred in Florida. The only two other states with more than ten banking failures are Illinois with 15 and Georgia with 14 (see Banking Failures Spread to 28 States).
Haven Trust Bank Florida, operating under a consent order with State and Federal regulators since early 2010, was closed by the Florida Office of Financial Regulation which appointed the FDIC as receiver. The consent order had required Haven Trust to raise critically needed capital and reduce nonperforming loans. In March 2010, President and CEO Matt Greene stated that “Our team is well on its way to meeting all requirements of the order and returning the bank to good standing”. Similar to many other small undercapitalized banks, Haven Trust was unable to meet the requirements of the FDIC consent order.
The FDIC, as receiver, entered into a purchase and assumption agreement with First Southern Bank, Boca Raton Florida to assume all deposits and purchase essentially all of the assets of failed Haven Trust Bank.
Although Haven Trust Bank Florida operated as a separate institution under a different banking charter, the bank had close ties to Haven Trust Bank, Duluth, Georgia, that was closed by regulators on December 12, 2008. Haven Trust Bank Florida, was founded in 2006 and five of its 11 founders also held management or board positions at Haven Trust Bank, Duluth, Georgia.
Both banks targeted primarily Indian and other Asian small business owners and both banks had almost 30% of their total loans in risky acquisition, development and construction loans. Both banks also fueled asset growth through aggressive soliciting of brokered deposits at high rates of interest.
jdmartin wrote:Thanks for the updates!
WASHINGTON -- Regulators on Friday shut down a total of six banks in Florida, Georgia, Illinois and Kansas, lifting to 138 the number of U.S. banks that have fallen this year as soured loans have mounted and the economy has sputtered.
The Federal Deposit Insurance Corp. took over the banks, the largest of which by far was Hillcrest Bank, based in Overland Park, Kan., with $1.6 billion in assets.
A newly chartered bank subsidiary of Boston-based NBH Holdings Corp. was set up to take over Hillcrest's assets and deposits. The new subsidiary will be called Hillcrest Bank N.A.
The agency and Hillcrest Bank N.A. are sharing losses on $1.1 billion of the failed bank's assets. Its failure is expected to cost the FDIC $329.7 million.
Also shuttered were: First Bank of Jacksonville in Jacksonville, Fla., with $81 million in assets; Progress Bank of Florida, based in Tampa, with $110.7 million in assets; First National Bank ( FORV.PK - news - people ) of Barnesville in Barnesville, Ga., with $131.4 million in assets; Gordon Bank of Gordon, Ga., with $29.4 million in assets; and First Suburban National Bank in Maywood, Ill., with $148.7 million in assets.
Ameris Bank, based in Moultrie, Ga., agreed to assume the assets and deposits of First Bank of Jacksonville. Bay Cities Bank, based in Tampa, is buying the assets and deposits of Progress Bank.
jdmartin wrote:That one in Kansas was a big ass bank. And they couldn't even find a buyer for the one in Arizona. Crazy.
Users browsing this forum: No registered users and 1 guest