Tag Archives: FDIC

Charter Financial Corporation is growing, via its acquisition of The First National Bank of Florida. Conducting the deal through its wholly owned subsidiary, CharterBank, Charter structured an agreement with the Federal Deposit Insurance Corporation to assume all deposits as well as the majority of assets of the Milton, Florida-based bank. The First National Bank of Florida was officially declared closed by the Office of the Comptroller of the Currency, and the FDIC was named as its receiver.

Amid national bank failures that recently ticked up to 70, the FDIC announced Friday that it will stand up a new networking platform that seeks to make it easier for small investors to take a slice of the pie.

As Americans vacationed over Labor Day weekend, the FDIC and other regulators found themselves swamped with new bank failures Friday, with the federal agency serving as receiver for two in Georgia. State regulators stepped in to shutter Cumming-based Patriot Bank of Georgia and Woodstock-based CreekSide Bank, signing off on a loss-share transaction that left Atlanta-based Georgia Commerce Bank as the sole acquirer. The collapse of Patriot and Creekside raises the national tally for bank failures to 70 this year.

Acting on behalf of Fannie Mae and Freddie Mac, the Federal Housing Finance Agency filed suits Friday against 17 of the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós largest banks and firms to recover losses stemming from mortgage-backed securities. At stake: tens of billions of dollars in assets, according to market watchers. Multiple news outlets fixed losses in mortgage-backed securities for the GSEs at $41 billion. The federal agency announced that it filed the suits on behalf of the GSEs in a New York federal court.

On the heels of attempts by investors to derail a mega settlement in the courts, Bank of America continued to shake up headlines Wednesday with multiple news outlets confirming that the mortgage giant plans to sell off its share of the correspondent mortgage market. With mortgage correspondents in the bank├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós unit set to soon receive their pink slips, multiple news outlets quoted suggested that some 3,500 could feel impact in their jobs. New job losses would follow recently reported second-quarter fallout.

The FDIC stepped in late Monday to halt the mega $8.5-billion Bank of America deal over mortgage-backed securities, according to multiple news outlets. The federal agency, an erstwhile bank regulator, filed its concerns in a U.S. District in New York as an investor with claims to securities at stake in the settlement. A state judge in New York will preside over the decision to green-light the settlement come November, even as an investor group persists in trying to kick the case up to a federal court, according to Bloomberg News.

The FDIC went after 34 banks for violations of federal law and agency requirements over July, slapping nearly 20 with civil fines, notifying some to correct recent decisions, and barring directors with two institutions to cease their involvement in executive decisions over allegations of personal and fiduciary misconduct. The majority of institutions felt the sting of civil money fines for various reasons. Also, no banks failed over the weekend, leading an FDIC spokesperson to conclude that the trend will continue over 2011.

In welcome news for market watchers everywhere, FDIC-insured banks and savings institutions opened their books to reveal a $28.8-billion in aggregate profits over the second quarter, according to the federal agency.

Four banks walked the line to failure over the weekend, raising the bank collapse figure to 68 on the heels of increased public scrutiny by lawmakers over bank failures. Illinois-based First Choice Bank, Georgia-based First Southern National Bank, Florida-based Lydian Private Bank, and Pennsylvania-based Public Savings Bank all left the table, leaving the FDIC to foot the whopping $374.8-million bill. The FDIC found itself playing the familiar role of receiver in all four loss-share transactions by other banks.

With the latest bank failure tallying up numbers for 2011 at 64, lawmakers convened a field hearing in Georgia Tuesday to determine whether risk-wary authorities are to blame for folding institutions and federal rescues. Appearing as witnesses, several bank presidents complained of a stifling regulatory environment, which federal regulatory authorities, in turn, portrayed as needed and helpful in the wake of the financial crisis. According to the FDIC, this year's 64 failures followed 157 from last year, which built on 140 failures over 2009, totaling 380 failures since 2008.