Tag Archives: FDIC

The Federal Housing Finance Agency (FHFA) is the second regulatory body to file a petition with the New York federal court that is reviewing Bank of America's $8.5 billion settlement proposal to Countrywide mortgage investors. FHFA has filed a Notice of Appearance and Conditional Objection in order to obtain additional information related to the proposal, but the agency says it sees ""no basis"" to raise a substantive objection to the settlement at this time.

Bad real estate loans from the heyday of the boom have weighed heavy on banks' balance sheets, forcing 365 FDIC-insured institutions to close up shop over the last two-and-a-half years. The FDIC keeps a list of banks it considers to have a high-risk of failure. This so-called ""Problem List"" has declined for the first time since the third quarter of 2006. The number of ""problem"" institutions under the FDIC's watchful eye fell from 888 at the end of the first quarter to 865 at the end of the second.

This year's failed-bank tally has hit 68 with the closings of four more FDIC-insured lenders. The latest casualties can be found in Florida, Georgia, Illinois, and Pennsylvania, and collectively are expected to cost the FDIC an estimated $374.8 million. Lydian Private Bank, based out of Palm Beach, Florida, was the largest of the seizures in this latest round. It operated five branches, with $1.24 billion in deposits and $1.70 billion in assets.

The Office of the Comptroller of the Currency shut down First National Bank of Olathe in Kansas on Friday evening and appointed the FDIC as receiver. So far this year, 64 insured institutions have landed on the FDIC's failed bank list. First National Bank of Olathe is the first Kansas-based institution to make that list in 2011. Enterprise Bank & Trust of Clayton Missouri agreed to take over the failed lender.

This year's failed-bank tally rose to 63 over the weekend, as state and federal regulators seized control of two more community-based lenders -- Bank of Whitman in Colfax, Washington, and Bank of Shorewood in Illinois. Together, the two closings are expected to cost the FDIC $160 million. Though still elevated, the number of bank seizures has tapered off considerably from earlier in the crisis. At this time last year, the count of FDIC-insured institutional failures stood at 109 for the 2010 calendar year.

Federal and state regulators shut down three more community-based lenders over the weekend in Indiana, South Carolina, and Virginia. With this latest round of closings, the FDIC's failed-bank list has grown to 61 for the 2011 calendar year. Integra Bank, N.A. in Evansville, Indiana, was the largest of this weekend's seizures, with 52 branches, $1.9 billion in deposits, and assets totaling $2.2 billion. It was taken over by Old National Bank, also in Indiana.

State and federal regulators closed the doors on three lending institutions over the weekend -- LandMark Bank of Florida, Southshore Community Bank also in Florida, and Bank of Choice out of Colorado. This latest round of closings brings the number of lenders on the FDIC's failed-bank list to 58 for the year. Together, the three seizures are expected to cost the federal agency $256 million.

State and federal regulators shut down four community-based financial institutions over the weekend two in Georgia and one each in Florida and Arizona. These latest closings bring the total number of names on the FDIC's failed bank list to 55 for the 2011 calendar year.

The FDIC has filed suit against former IndyMAC Bancorp Inc. CEO Michael Perry for $600 million in losses caused by risky mortgage loans. The FDIC accuses Perry of purchasing $10 billion in risky residential loans.

Regulators closed three banks over the weekend – two in Colorado and one in Illinois. Colorado Capital Bank, Castle Rock, Colorado, and Signature Bank, Windsor, Colorado, were closed by the Colorado Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. First Chicago Bank & Trust, Chicago, Illinois, was closed by the Illinois Department of Financial and Professional Regulation, which also appointed the FDIC as receiver.