Tag Archives: FDIC

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.

Credit quality of large loan commitments owned by domestic and foreign banks and nonbanks is on the rise for the third consecutive year, according to this year's Shared National Credits (SNC) Review. The review revealed that the volume of criticized loans (rated special mention, substandard, doubtful, or loss), while still historically high, fell to $295 billion, an 8.1 percent drop from 2011.

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.

The Federal Deposit Insurance Corp.(FDIC) is going after a list of financial institutions over mortgage securities sold to the now defunct Colonial Bank. According to the complaint, the defendants - which include JPMorgan Chase, CitiMortgage, and Wells Fargo - made untrue statements or omitted important information when selling securities to Colonial. The suit is over $388 million in securities Colonial purchased from the defendants.

While the FDIC welcomes all potential investors, the agency is encouraging participation from minority- and women-owned investors and asset managers for a series of workshops its hosting.

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.

The FDIC announced Friday the closure of Montgomery Bank & Trust in Ailey, Georgia, after the disappearance of the bank's director. Aubrey Lee Price, an investment advisor and the director of Montgomery Bank & Trust, was accused by the government of wire fraud related to the embezzlement of $17 million from the bank.

On behalf of the FDIC, DebtX is going to sell more than $358 million of participations, loans, and leases from the Tennessee Commerce Bank receivership, the company announced Wednesday. The portfolio includes $46.5 million of performing non-lead loan participations and $311.

The FDIC's Deposit Insurance Fund (DIF) took a combined hit of approximately $80.8 million Friday after the closure of four banks. First Capital Bank in Oklahoma was announced by the FDIC as the first Oklahoma bank and the 25th bank overall to close in 2012. That announcement was followed by three more announcements of the closings of Carolina Federal Savings Bank in South Carolina, Farmers and Traders State Bank in Illinois, and Waccamaw Bank in North Carolina.

The Systemic Risk Council, a volunteer group led by former FDIC chair Sheila Bair, will meet in June to monitor and encourage regulatory reform of U.S. capital markets focused on systemic risk. The council, formed by CFA Institute and The Pew Charitable Trusts, is an assembly of experts in investments, capital markets, and securities regulation.