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Tag Archives: Bank Failure

Two New Bank Failures Mean 15 for 2012

State regulators shuttered two banks Friday, lifting the national tally to 15 for 2012 so far. Branches fell dark for Rock Spring, Georgia-based Covenant Bank & Trust and Wilmette, Illinois-based Premier Bank. Covenant Bank & Trust went under with $95.7 million in total assets and $90.6 million in total deposits, burning $31.5 million from the FDIC├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Deposit Insurance Fund. Stearns Bank signed off on a loss-share transaction to cover $71.6 million in assets from the financial institution. The International Bank of Chicago picked up Premier Bank in a separate transaction.

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Georgia Bank Failure Raises 2012 Tally to 12

The bank failure tally for 2012 rose Friday as state regulators shuttered a bank in Georgia, emboldening the state's reputation as a graveyard for community banks in recent years. The Georgia Department of Banking and Finance turned off the lights for Doraville-based Global Commerce Bank, which went under with about $143.7 million in total assets and $116.8 million in total deposits. Neighboring Metro City Bank entered into a purchase-and-assumption transaction with the FDIC, scooping up $79 million in assets and leaving the rest to the agency for disposition.

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Two Banks Go Under, Lifting National Tally to 11

The lights went dark for two banks in Georgia and Minnesota Friday, with one unable to secure an acquirer for deposits. The cash registers at Little Falls-based Home Savings of America fell silent without any bank scheduled to take up $434.1 million in total assets and $432.2 million in total deposits. The FDIC said in a statement that it approved payouts for customers worth the sum of their deposits. The agency insures deposits for up to $250,000 each. State regulators in Georgia also shuttered Ellaville-based Central Bank of Georgia.

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Two Banks Fall Under, Raising National Tally to Nine

State and federal regulators closed banks in Indiana and Illinois Friday, raising the national tally for failures to nine for 2012. Shelbyville, Indiana-based SCB Bank fell dark with about $182.6 million in total assets and $171.6 million in total deposits. The Office of the Comptroller of the Currency closed the institution and appointed the FDIC to carry out responsibilities as receiver. The OCC also closed Charter National Bank and Trust in Hoffman Estates, Illinois. The bank went under with $93.9 million in total assets and $89.5 million in total deposits.

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Four New Bank Failures Raise National Tally to Seven

Federal and state regulators shuttered four banks Friday, including one in Florida, another in Minnesota, and two in Tennessee. State regulators appointed the FDIC receiver in all cases, resulting in more than $600 million in accumulated costs for the Deposit Insurance Fund. The four newest bank failures raise the national tally to seven so far in 2012. Bank failures ended last year by hitting 92, down from 157 seen in 2010. An FDIC spokesperson says that 2010 signaled a high-water mark for closures.

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Obama Proposes New Lending Oversight, Refi Modifications

President Barack Obama used his State of the Union address Wednesday to tout his accomplishments and propose several new housing ventures, including possible expansions to refinance programs, consumer financial protection, and new federal initiatives to combat abusive lending practices. The speech weighed in on risky lending practices in particular and went after Republicans for their opposition to his policies, including consumer financial protection. Experts remain on the sidelines about an expanded refinance program.

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Three New Bank Failures Mark First for New Year

Three new banks went under Friday, marking the first for 2012 since state and federal regulators closed 92 financial institutions last year. State regulators in Florida and Georgia shuttered Central Florida State Bank and The First State Bank in Belleview and Stockbridge, respectively. The Office of the Comptroller of the Currency closed American Eagle Savings Bank in Boothwyn, Pennsylvania. The latest bank failures mark the first three for 2012. Last year saw 92 closures nationally, while 2010 bore witness to 157 bank failures.

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Witnesses Criticize, Call for Repeal of Volcker Rule

Witnesses testifying before the House Financial Services Committee Wednesday warned lawmakers that the controversial Volcker Rule could tighten bank liquidity and make U.S. financial institutions less competitive with banks overseas. Once finalized by regulators, the rule ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô unless modified or repealed by lawmakers ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô will enact a provision under the Dodd-Frank Act that prohibits U.S. banks from engaging in short-term proprietary trading practices. Douglas Elliott, a fellow with the Brookings Institution, called for an outright repeal of the Volcker Rule.

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FDIC Rules Outline Living Wills, Stress Tests for Banks

The FDIC finalized one rule and proposed another Tuesday that requires systemically large financial institutions to submit resolution plans and undergo annual stress tests, respectively. Under the finalized rule, financial institutions with more than $50 billion in assets will need to craft so-called living wills, or resolution plans, for the FDIC and regulators to follow in the event of collapse. The agency also proposed another rule Tuesday for public commentary on capital adequacy tests, or stress tests, for financial institutions with $10 billion or more in assets, including 23 state non-member banks.

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