FDIC Seizes Three Banks

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ericlp

ericlp

Diamond Member
Dec 24, 2000
6,137
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State and federal banking regulators seized three small lenders on Friday, lifting the total number of bank failures this year to 133.
The Federal Deposit Insurance Corp. estimated that the three failures—in Florida, Arizona and Kansas—would cost the agency's cash-strapped deposit-insurance fund a total of about $252 million.
In Friday's first failure, the FDIC sold Miami-based Republic Federal Bank NA's branches, deposits and most of its assets to 1st United Bank of Boca Raton, Fla. The failure, the 13th this year in Florida, is expected to cost the FDIC's insurance fund $122.6 million.
Later Friday, federal regulators seized Valley Capital Bank NA of Mesa, Ariz., and sold the one-branch bank's deposits and assets to Enterprise Bank & Trust of Clayton, Mo. The FDIC estimated the failure, the fourth in Arizona this year, will cost its insurance fund $7.4 million.
Finally, Kansas regulators shuttered SolutionsBank of Overland Park, marking the third bank to fail in Kansas this year. The FDIC sold the bank's deposits, branches and assets to Arvest Bank of Fayetteville, Ark. The FDIC said the failure will cost its insurance fund about $122.1 million.
In all three failures, the FDIC agreed to shield the acquiring banks from most losses on the failed banks' assets.
The 133 failures so far this year represent the largest number of bank collapses since 1992, when 181 lenders toppled during the tail end of the savings-and-loan crisis. Federal officials, bankers and analysts expect the number of bank failures to remain high at least through next year.
Banks have been failing at an especially rapid clip this year in Florida and Georgia, leading the FDIC earlier this year to open a "temporary satellite office" in Jacksonville, Fla., to facilitate closings of nearby banks. The FDIC said the office would be staffed by approximately 500 workers.




Jeeez, 133 failures. Man... when will it end? Where is all this FDIC money coming from?



I'd love to see the balance of 133 failures for this year alone. I'm guessing the money is somehow coming from tax payers.
Oh well, it will be interesting to see the tally for next years bank failures.


Edit:

Link for those who care.

http://online.wsj.com/article/SB10001424052748704201404574590451333082762.html
 
Last edited:
R

Ronstang

Lifer
Jul 8, 2000
12,493
18
81
The Democrats seem to have a magic purse. I think they are all issued one upon getting sworn into Congress. All is well. No worries.
 
Lemon law

Lemon law

Lifer
Nov 6, 2005
20,984
3
0
Ok OK all you geniuses, answer how you think the FDIC can act in any other way.

Mismanaged banks still imploding because of the lax regulation acts of GWB&co.

Yes I know, it was the fault of the fool depositors who had faith in those banks, let them take the forfeit is the proper GOP answer.
 
cubeless

cubeless

Diamond Member
Sep 17, 2001
4,295
1
81
cool... we need good paying fed jobs in florida... there's 500 more jobs bo has created...
 
BoberFett

BoberFett

Lifer
Oct 9, 1999
37,562
9
81
Lemon law said:
Ok OK all you geniuses, answer how you think the FDIC can act in any other way.

Mismanaged banks still imploding because of the lax regulation acts of GWB&co.

Yes I know, it was the fault of the fool depositors who had faith in those banks, let them take the forfeit is the proper GOP answer.
Click to expand...

*Psssst* Hey wingnut. The Democrats have had the majority for three years.
 
JSt0rm

JSt0rm

Lifer
Sep 5, 2000
27,399
3,947
126
how the the hell did this become a democrate/republican thing? Ohh wait...
 
A

alchemize

Lifer
Mar 24, 2000
11,486
0
0
Putting banks into receivership should have been done with all the "to big to fail banks" instead of the TARP bullshit.
 
Vic

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Ronstang said:
The Democrats seem to have a magic purse. I think they are all issued one upon getting sworn into Congress. All is well. No worries.
Click to expand...

Uh... what does the current Democratic-controlled Congress have to do with the established function of the FDIC to seize insolvent banks?
 
Vic

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Hacp said:
500 jobs for 250 million. I guess they're high paying jobs :p
Click to expand...

Did you read the article? The $252 million is the cost of the 3 banks' insolvencies, and not related to the salaries for the 500 employees.
 
Vic

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
BoberFett said:
*Psssst* Hey wingnut. The Democrats have had the majority for three years.
Click to expand...

*psst* The board of directors of the FDIC is appointed by the President, and the present chairwoman of the board, Sheila Bair, was appointed by Bush in 2006.
 
Vic

Vic

Elite Member
Jun 12, 2001
50,422
14,337
136
Lemon law said:
Ok OK all you geniuses, answer how you think the FDIC can act in any other way.

Mismanaged banks still imploding because of the lax regulation acts of GWB&co.

Yes I know, it was the fault of the fool depositors who had faith in those banks, let them take the forfeit is the proper GOP answer.
Click to expand...

The 'fool' depositors were insured up to $250k per account. That's the biggest reason why these bank failures are costing the FDIC insurance fund $252 mil.
 
T

theblackbox

Golden Member
Oct 1, 2004
1,650
11
81
the best thing about the seizures is the asset auctions are pretty good if you need IT equipment.
have one closing in corona, ca in a week and there is some pretty good stuff from the closure on the block.
 
T

TruePaige

Diamond Member
Oct 22, 2006
9,874
2
0
ericlp said:
Jeeez, 133 failures. Man... when will it end? Where is all this FDIC money coming from?



I'd love to see the balance of 133 failures for this year alone. I'm guessing the money is somehow coming from tax payers.
Oh well, it will be interesting to see the tally for next years bank failures.
Click to expand...

Seriously OP?

You don't know where the FDIC gets money from?
 
mugs

mugs

Lifer
Apr 29, 2003
48,920
46
91
Ronstang said:
The Democrats seem to have a magic purse. I think they are all issued one upon getting sworn into Congress. All is well. No worries.
Click to expand...

Damn right. It'll take a long time to undue the damage that W did, but they're working on it.
 
dawp

dawp

Lifer
Jul 2, 2005
11,347
2,709
136
TruePaige said:
Seriously OP?

You don't know where the FDIC gets money from?
Click to expand...

doesn't it come from premiums paid from member banks? I remember a big stink a while back about the FDIC wanting to raise premiums and the smaller banks said they didn't cause the trouble and couldn't afford it.
 
boomerang

boomerang

Lifer
Jun 19, 2000
18,883
641
126
dawp said:
doesn't it come from premiums paid from member banks? I remember a big stink a while back about the FDIC wanting to raise premiums and the smaller banks said they didn't cause the trouble and couldn't afford it.
Click to expand...
Yup

Coincidently, for the third quarter of 2009, the FDIC was $8.2 Billion in the red. So guess where the money is coming from.

This country is bankrupt. Don't let the naysayers and the optimists tell you otherwise.
 
A

Aegeon

Golden Member
Nov 2, 2004
1,809
125
106
boomerang said:
Yup

Coincidently, for the third quarter of 2009, the FDIC was $8.2 Billion in the red. So guess where the money is coming from.

This country is bankrupt. Don't let the naysayers and the optimists tell you otherwise.
Click to expand...
Coincidentally this is substantially misleading.

The FDIC currently has 30.7 billion dollars in reserves at the moment. The 8.2 billion in the red is a math artifact for the moment which assumes substantial future bank closings.
http://www.bankinfosecurity.com/articles.php?art_id=1964

The FDIC is going to substantially replenish its reserves by raising the insurance fees its charging banks its insuring to collection another 45 billion dollars for next year, so that's where the FDIC intends to get its money.

It should be noted that the number of banks the FDIC has had to take over has actually dropped substantially recently suggesting some degree of stabilization. In fact some are arguing that the FDIC's assumption of future loses is substantially too high dollar wise, and even the FDIC's current reserves should be sufficient to pay the loses through this current banking crisis.
http://www.bloomberg.com/apps/news?pid=20601039&sid=au..Bhw876G0
 
TastesLikeChicken

TastesLikeChicken

Lifer
Sep 12, 2004
16,852
59
86
Vic said:
*psst* The board of directors of the FDIC is appointed by the President, and the present chairwoman of the board, Sheila Bair, was appointed by Bush in 2006.
Click to expand...
A small addition/correction - The FDIC BoD is appointed by the President...with the consent of the Senate.
 
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