2012 Failed Banks Thread

[Keith_McClary]

Major banks downgraded by Moody's

Moody's grouped the 15 institutions downgraded Thursday into three categories based on their relative credit-worthiness.
In the strongest group are JPMorgan, HSBC and the Royal Bank of Canada, which Moody's said had solid capital buffers and "contained" exposure to the European crisis. Moody's also said these banks demonstrated solid risk management during the financial crisis.
In the second group are Barclays, BNP Paribas, Credit Agricole, Credit Suisse, Deutsche Bank, Goldman Sachs, Societe Generale and UBS. Moody's said these firms had varying risk factors, ranging from high dependence on capital markets operations to limited liquidity and exposure to Europe.
The weakest group includes Bank of America, Citigroup, Morgan Stanley, and Royal Bank of Scotland (RBS). Moody's said firms in this group had experienced problems with volatility and risk management, and in some cases had weaker buffers than their peers in the industry.
BofA and Citi are now rated just two notches above junk status, while Morgan Stanley sits three notches above.

[EdwinSm]

It is time to wake up this thread:

Busy Friday...bringing the year total to 38.


"Pretty large loss for the DIF. That makes five today ..."
Read more at http://www.calculatedriskblog.com/#3SGkbJVzSkAk625p.99

Second Federal Savings and Loan Association of Chicago
Heartland Bank, Leawood, Kansas
The Royal Palm Bank of Florida
Georgia Trust Bank
First Cherokee State Bank

[EdwinSm]

Small enough to fail: #39 (in 2012):

As of March 31, 2012, Jasper Banking Company had approximately $216.7 million in total assets and $213.1 million in total deposits. In addition to assuming all of the deposits of the failed bank, Stearns Bank National Association agreed to purchase essentially all of the assets.

http://www.fdic.gov/news/news/press/2012/pr12089.html

[EdwinSm]

#40 in 2012. When will they run out of small banks and have to start failing the big ones?

Waukegan Savings Bank, Waukegan, Illinois....,

The two branches of Waukegan Savings Bank will reopen....

As of March 31, 2012, Waukegan Savings Bank had approximately $88.9 million in total assets and $77.5 million in total deposits. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $19.8 million.

http://www.fdic.gov/news/news/press/2012/pr12090.html

[EdwinSm]

This thread seems to have died.... maybe the bank closure rate is too slow to get people excited. Anyway the number if bank closures in now up to 51. I wonder if that will be all for the year 2012.

Bank of Sullivan, Sullivan, Missouri, Assumes All of the Deposits of Community Bank of the Ozarks, Sunrise Beach, Missouri.

http://www.calculatedriskblog.com/2012/12/bank-failure-51-community-bank-of.html

Also:

Unofficial Problem Bank list declines to 845 Institutions

Note: The first unofficial problem bank list was published in August 2009 with 389 institutions. The number of unofficial problem banks grew steadily and peaked at 1,002 institutions on June 10, 2011. The list has been declining since then.

http://www.calculatedriskblog.com/2012/12/unofficial-problem-bank-list-declines_15.html

Does this reflect an improvement in the economy, or is it because so many banks have been closed/merged over the last few years that the numbers (in terms of individual banks) can no longer keep up?

[Keith_McClary]

Does this reflect an improvement in the economy, or is it because so many banks have been closed/merged over the last few years that the numbers (in terms of individual banks) can no longer keep up?

Closer regulatory oversight?

the Queen went on to suggest that the Financial Services Authority may not have been aggressive enough in its policing. She said: ‘The Financial Services – what do they call themselves, the regulators – Authority, which was really quite new … it didn’t have any teeth.’

http://www.dailymail.co.uk/news/article ... aults.html