In a speech to the nation, the president described a spirit of cooperation between Democrats and Republicans and between Congress and his administration. He invited leaders of both parties to the White House to discuss an upcoming vote which he acknowledged would be a tough decision for many members of Congress. And he closed with: ""America is a nation that tackles problems head on, where leaders come together to meet great tests."" The words were not those of President Obama but of President Bush.
Read More »Banks Post Record $42.2B in Profits; Problem Bank List Shrinks
FDIC-insured banks earned a record $42.2 billion in profits in the second quarter of this year, up 22.6 percent, or $7.8 billion, from $34.4 billion a year ago. The increase marks 16th month-in-a-row earnings rose year-over-year. Overall, 53.8 percent of the nearly 7,000 insured banks posted yearly increases in earnings. As profits rose, the list of problem banks shrunk to 533 compared to 612 a year ago. The tally for problem banks is also down significantly from the record high of 888.
Read More »Agencies Propose Revised QRM Rule
Six federal agencies jointly released their proposed QRM rule that would require lenders to retain risk when selling mortgage-backed securities (MBS). The new proposal was created in consideration of the industry's response to the original proposal issued in 2011. That proposal required lenders to keep a stake in the loans they sold in which borrowers were spending more than 36 percent of their income on payments and in loans with down payments of less than 20 percent. Under the new proposal, the 36 percent income threshold has been raised to 43 percent, and the revised rule also eliminates the down payment requirement.
Read More »Regulators Close Banks in Tennessee, Arizona
The FDIC's list of federally insured bank failures grew to 20 so far this year as two more banks collapsed. On Friday, FDIC announced the closures of Community South Bank (Parsons, Tennessee) and Sunrise Bank of Arizona (Phoenix).
Read More »Wisconsin Bank Closes, Bringing 2013 Tally to 18
The Wisconsin Department of Financial Institutions closed on Friday the Bank of Wasau, appointing FDIC as receiver. As of June 30, the bank had approximately $40.7 million in deposits and $43.6 million in total assets.
Read More »Florida Bank Failure Raises Tally to 17
After nearly two months with no activity, FDIC's list of bank failures grew by one on Friday with the closure of First Community Bank of Southwest Florida (also operating as Community Bank of Cape Coral).
Read More »Rule Seeks Appraisal Requirement Exemptions for Higher-Priced Loans
Six financial regulatory agencies issued on Wednesday a proposed rule to exempt a subset of higher-priced mortgage loans from certain appraisal requirements. In a joint release, the agencies proposed to provide exemptions from Dodd-Frank appraisal requirements for loans of $25,000 or less, certain streamlined refinancings, and certain loans secured by manufactured housing.
Read More »Regulators Propose Rule to Double Leverage Ratio for Biggest Banks
In separate statements Tuesday, the Office of the Comptroller of the Currency (OCC), FDIC, and the Federal Reserve Board (FRB) proposed a rule that would require insured depository institutions of certain banks to meet a 6 percent supplementary leverage ratio to be considered ""well capitalized."" The proposal would also require covered bank holding companies to maintain a tier 1 capital leverage buffer of at least 2 percent above the minimum supplementary leverage ratio requirement of 3 percent, for a total of 5 percent, the regulators stated.
Read More »Tennessee Bank Collapses Over Weekend
The weekend saw more bad news from FDIC: the closure of a Tennessee bank, bringing the nation's year-to-date total to 16.
Read More »Las Vegas Bank Falls, Raising Tally to 15
FDIC's failed bank tally rose to 15 as an institution in Las Vegas shut down, the agency announced.
Read More »