From 2008 through 2011, 414 banks failed across the nation, resulting in estimated costs to the Deposit Insurance Fund (DIF) of about $42.8 billion, according to a recent report by the Government Accountability Office (GOA). When examining the cause of bank failures from 2008 through 2011, GOA found banks with less than $1 billion in assets were especially vulnerable to commercial real estate losses. GOA also found instances of "nontraditional, riskier funding sources" in many failed banks.
Read More »FDIC Reports 51st Bank Failure of 2012
Sunset Beach, Missouri, was the site of this year's 51st bank collapse as the Missouri Division of Finance shut down the Community Bank of the Ozarks. According to a release from the FDIC, Community Bank of the Ozarks had approximately $42.8 million in total assets and about $41.9 million in deposits as of September 30. The Bank of Sullivan (Sullivan, Missouri) will be picking up all of the deposits and will purchase essentially all of the assets.
Read More »Ex-IndyMac Execs Ordered to Pay $169M for Negligent Loans
A Los Angeles jury ruled three former IndyMac Bank officers must pay $169 million in damages to the FDIC for making negligent loans to homebuilders.
Read More »FDIC Reports Continued Improvements in Bank Health
FDIC-insured banks continued to show improving health in the year's third quarter, the agency reported Tuesday. Commercial banks and savings institutions insured by FDIC reported aggregate net income of $37.6 billion in Q3, up $2.3 billion (or 6.6 percent) from a reported $35.2 billion in Q3 2011. Aggregate net income has increased on a year-over-year basis for 13 straight quarters. Total loan balances also increased for the fifth time in the last six quarters.
Read More »President Appoints New FDIC Chairs
President Obama has appointed two new chairs to lead the FDIC's board of directors, the agency announced. Martin J. Gruenberg is the board's new chairman, and Thomas M. Hoenig is the vice chairman.
Read More »First Bank of Delaware Issued $15M in Penalties
The FDIC and the Financial Crimes Enforcement Network (FinCEN) announced the assessment of $15 million in penalties against the First Bank of Delaware in Wilmington for violations of the Bank Secrecy Act (BSA) and anti-money laundering (AML) laws and regulations.
Read More »Bank Failure in Georgia Marks 50th This Year
Marking the 50th bank closing nationwide this year, the two branches of Hometown Community Bank in Braselton, Georgia shut their doors Friday and reopened Saturday as branches of CertusBank, National Association of Easley, South Carolina.
Read More »FDIC to Close Final Temporary Office Established After Financial Crash
FDIC put a date on the closure of the last of its satellite offices established in the wake of the financial crash. The agency's East Coast Temporary Satellite Office (ECTSO), located in Jacksonville, Florida, will close April 5, 2014.
Read More »Agencies Announce Delay on Basel III Implementation
The implementation of the Basel III capital rules may be postponed beyond the start of 2013, according to a joint statement released by the Office of the Comptroller of the Currency, the FDIC, and the Federal Reserve. The announcement follows a comment period during which many trade organizations and institutions expressed apprehension about the new requirements.
Read More »Failed Bank List Hits 49 Year-to-Date
The FDIC added two more banks to this year's failed bank list Friday, bringing the total year-to-date to 49. The two shuttered banks were located in Illinois and Florida, each marking the eighth bank in their state to close this year.
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