Tag Archives: Bank Failure

Truman Bank became the 42nd community bank to shutter its doors on Friday, falling under the weight of bad commercial loans with $282.3 million in total assets.

The FDIC announced on Friday the closure of First Commercial Bank in Bloomington, Minnesota.

As bank failures dwindle, FDIC institutions continue to see their own coffers swell, with an agency report finding that banks with government guarantees earned $34.5 billion over the second quarter. The FDIC also noted fewer ""problem"" institutions for the fifth consecutive quarter. Those identified as problems fell from 772 to 732, making this year one for the smallest problem banks since fourth-quarter 2009. Assets for institutions on the decline fell from $292 billion to $282 billion. And banks seemed to sweat a little less over the last quarter.

A Virginia developer pled guilty Friday for his role in a massive bank fraud scheme that contributed to the collapse of Bank of the Commonwealth, officials announced Monday. Thomas E. Arney, 56, of Chesapeake, Virginia pled guilty to conspiracy to commit bank fraud, unlawful monetary transactions, and making false statements, according to the statement.

The FDIC filed three complaints against financial institutions that were involved in the sale of mortgage-backed securities to the now defunct Guaranty Bank. The FDIC became receiver for the Austin-based bank when it failed in August 2009. In all three complaints, the FDIC claims the defendants made false or misleading statements when issuing, underwriting, or selling securities to Guaranty Bank.

Regulators closed Jasper Banking Company of Jasper, Georgia over the weekend, leading to 9 fallen banks in the state and 39 bank failures nationwide so far this year.

The FDIC's Deposit Insurance Fund (DIF) is an estimated $151.3 million dollars lower after Friday claimed five more banks nationwide. Royal Palm Bank of Florida in Naples closed Friday, marking the fifth bank closure in the state and the 34th bank closure in the country overall. FDIC announced at the same time the closure of four other banks: Georgia Trust Bank in Buford; First Cherokee State Bank in Woodstock, Georgia; Heartland Bank in Leawood, Kansas; and Second Federal Savings and Loan Association of Chicago. These closings bring the 2012 national tally to 38.

Missouri saw its first bank casualty of 2012 Friday as FDIC announced that Glasgow Savings Bank of Glasgow, Missouri, was closed down by the state's finance division.

Top executives and favored borrowers faced indictment by a federal grand jury on Wednesday for their role in a massive fraud that led to the biggest Virginia bank collapse since 2008. According to a release on Thursday from SIGTARP, the accused are charged with masking non-performing assets at the Bank of the Commonwealth in Norfolk, Virginia.

In a shareholder class-action lawsuit, former executives of IndyMac Bankcorp agreed to settle for $6.5 million following the bank's 2008 collapse, the Associated Press reported Sunday.