Tag Archives: FDIC

Financial institutions now have more elbow room for their commentary, thanks to the decision by four federal agencies to extend commentary for a controversial rule under the Dodd-Frank Act. The FDIC, Federal Reserve, Office of the Comptroller of the Currency, and Securities and Exchange Commission acted in unison Friday by agreeing to delay commentary deadlines for the Volcker Rule, which proposes to ban short-term proprietary trading for financial institutions. The agencies will receive public commentary over the rule until February 13, 2012.

Two banks went under over the weekend, interrupting a failure-free last two weeks and raising the national tally to 92 for the year ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a number in line with earlier forecasts from the FDIC as the New Year approaches. Phoenix, Arizona-based Western National Bank and Panama City, Florida-based Premier Community Bank each shuttered their doors, with regulators appointing the FDIC to serve in its traditional role of receiver. Both bank failures cost the FDIC's insurance fund a combined $68.8 million.

The Consumer Financial Protection Bureau will clarify and hone rules from 18 consumer financial laws it arrogated from seven federal regulatory agencies in July.

Balance sheets improved steadily for commercial and savings financial institutions over the third quarter, according to the FDIC, with those insured by the federal agency offering $35.3 billion in profit margins. Loan portfolios snagged an updraft over the third quarter, posting an increase for the second consecutive quarter as loans and leases went up by $21.8 billion. Residential mortgage loan balances climbed by $23.7 billion. Notably, the FDIC's "Problems List" contracted for the second consecutive quarter.

Defying forecasts for a slowdown, the national tally for bank failures this year hit 90 as two financial institutions went under in Iowa and Louisiana. State regulators shuttered Johnston, Iowa-based Polk County Bank and Lacombe, Louisiana-based Central Progressive Bank, appointing the FDIC receiver. Grinnell-based Grinnell State Bank and New Orleans-based First NBC Bank scooped up branches, assets, and deposits in purchase-and-assumption agreements. Century-old Polk County closed its doors.

The Senate Banking Committee pressed nominees for the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós major financial services and housing agencies over a myriad of recent issues Thursday, with insolvency for the Federal Housing Administration and an increasing number of bank failures prevailing in discussions. The nomination hearing for the three Obama administration prospects ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô FHA commissioner-nominee Carol Galante, FDIC vice-chairman nominee Thomas Hoenig, and HUD deputy secretary-nominee Maurice Jones ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô quickly transitioned from congratulatory to tense and at times awkward.

The 2011 national tally for bank failures crested at 88 with the closure of a financial institution in Georgia Thursday. The Community Bank of Rockmart added to the state's litany of bank failures by shuttering with $62.4 million in total assets and $55.9 million in total deposits. State regulators closed the bank and appointed the FDIC as receiver. The FDIC swooped in to cover the $14.5 million-bill left behind by the bank failure. The failure in Rockmart boosts both the national and state tallies, with the latter climbing to 23, keeping Georgia the leader in 2011 closures.

The feud between lawmakers over the Consumer Financial Protection Bureau dragged on Wednesday, as de facto acting director Raj Date defended the struggling agency to Republican House members and the role of the Dodd-Frank Act in financial regulation. Republicans advanced their critiques by highlighting the apparent power of the CFPB director and more compliance workload for financial institutions. Democratic lawmakers played their part by praising the bureau. At other times lawmakers ratcheted up the rhetoric.

The recently proposed Volcker Rule will sap nearly $1 billion in revenue from the nation's banks as lenders spend more time, resources, and manpower complying with regulations, according to a recent government study. The Office of the Comptroller of the Currency estimated that the rule as drafted by the FDIC, Federal Reserve, and other federal authorities will result in expenditures totaling $100 million for state, local, and other governments. The rule continues to stir controversy following its proposal earlier this month.

A U.S. federal judge handed prison sentences and $100 million in fines to two former bank officials and a borrower Thursday for their roles in trying to bilk the Troubled Asset Relief Program during the financial crisis. Former Orion Bank EVP Thomas Hebble and SVP Angel Guerzon, along with onetime borrower Francesco Mileto, received time in federal prison for falsifying information about bad loans under the pretenses that their financial institution qualified for bailout funds from the federal government.