Tag Archives: FDIC

President Barack Obama met with financial regulators this week to commend them for progress made since the Dodd-Frank Act became law in 2010, the White House announced. The president also exhorted the regulators and participants in the meeting to "consider additional ways to prevent excessive risk-taking across the financial system."

Financial regulators said Tuesday they hope to finish their work on a rule aimed at tightening mortgage standards and reducing risk by the end of this year. In a Senate Banking Committee hearing, FDIC chair Martin Gruenberg said his agency and others are "in the end game" of their work on a rule that would require mortgage-backed securities (MBS) issuers to hold a stake on packaged loans that don't meet certain exemption requirements.

Federal regulators announced last week they have finalized a rule with regards to the "liquidity coverage ratio" (LCR) of large financial institutions. The final rule is nearly identical to the rule that was originally proposed with a few changes based on public comments.

A report released Thursday by FDIC showed that federally insured institutions earned $40.2 billion and increased loan and lease balances by $178.5 billion (to $8.1 trillion) in the second quarter. The boost in lending was the largest quarterly increase since the fourth quarter of 2007.

The fallout of the financial crisis caught up to another bank over the weekend, resulting in a shutdown by federal regulators. The Office of the Comptroller of the Currency (OCC) announced on Friday the closure of Chicago-based GreenChoice Bank. The recently shuttered bank is the second to fall in Illinois in the past two months and the 14th FDIC-insured institution to close so far this year.

State and federal regulators announced Friday the closing of a Georgia bank, putting the 2014 national bank failure tally at 13. Georgia's Department of Banking and Finance took possession of Conyers-based Eastside Commercial Bank, appointing FDIC as receiver. While FDIC doesn't make its list of Problem Banks open to the public, Eastside has sat on Calculated Risk's unofficial list since 2009.

On Wednesday, four federal financial regulatory agencies and the Conference of State Bank Supervisors (CSBS) issued risk management guidelines for financial institutions that need to be aware of the challenges borrowers may face in paying off their home equity lines of credit after coming out of a recession.

FDIC announced Friday the closure of yet another insured bank, bringing the count up to 12 in the year's first half. The Oklahoma State Banking Department shut down Freedom State Bank over the weekend, closing the book on an institution described by FDIC in early May as "critically undercapitalized."

The list of 2014 bank collapses grew into the double digits over the weekend as River Valley Bancorp was forced to close two of its subsidiary operations. In separate releases issued Friday, FDIC announced the shuttering of Valley Bank branches in Moline, Illinois, and Fort Lauderdale, Florida, bringing the 2014 bank failure tally to 11 so far.

Following a prior collapse in Ohio, FDIC announced over the weekend the closure of another bank: Slavie Federal Savings Bank of Bel Air, Maryland, has been closed. The agency entered into a purchase and assumption agreement with Bay Bank, FSB of Lutherville, Maryland, to assume all the deposits of the recently shuttered Slavie Federal Savings Bank.