Posted on 10/03/2009 8:36:13 PM PDT by Kartographer
Regulators have shut Warren Bank in Warren, Mich., and two small banks in Colorado and Minnesota, boosting the number of failed U.S. banks this year to 98 as loan defaults rise in the worst financial climate in decades.
The Federal Deposit Insurance Corp. took over Warren Bank, with about $538 million in assets and $501 million in deposits as of July 31. The Huntington National Bank, based in Columbus, Ohio, agreed to assume the deposits and about $83 million of the assets of the failed bank. The FDIC will retain the remaining assets for later disposition.
Warren Bank's six branches will reopen Saturday as offices of Huntington National Bank.
(Excerpt) Read more at apnews.myway.com ...
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*Ping!* |
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FDIC’s out of money, right?
I understand that they are broke or nearly broke. I also have been told that they are a good number of ‘zombie’ banks, banks that need to be closed and would have been already, but for the fact that the FDIC is so far under itself it can’t cover the losses.
The (newly) traditional Friday night financial fricassee.
Just wait until all those big farms in the San Joaquin Valley default because they have no crops from lack of water. To save a minnow. We’ll not only feel it in the financial industry, but in the grocery store prices too.
According to a letter advising the President, yes. They are in the negative as of September 30.
But of course Chicago getting the Olympics was more important...
By the way, what are all those financial advisors on the radio saying now that the FDIC is out of money? I heard a few months back then soothing everyone’s fears by saying ‘Don’t worry about your money, the FDIC is insuring you up to a new level (can’t remember the increased amount) so you will be fine.” Makes me wonder if I shouldn’t forward that url showing the FDIC in the negative.
This is the scary part.
Pursuant to these requirements, staff estimates that both the Fund balance and the reserve
ratio as of September 30, 2009, will be negative. This reflects, in part, an increase in
provisioning for anticipated failures. In contrast, cash and marketable securities available to
resolve failed institutions remain positive.
“Just wait until all those big farms in the San Joaquin Valley default because they have no crops from lack of water. To save a minnow. We’ll not only feel it in the financial industry, but in the grocery store prices too.”
Hell it’s worse than that, it’s not even a minnow;
it’s the Delta Smelt, a tiny non- native fish!
That’s what I’m reading except it’s worse. Hundreds of banks should already have been closed but FDIC is dragging their feet. You can guess why or why not... money, panic, overwhelmed and so on. Even credit unions are beginning to fold.
CIT is on the ropes again, talk of a VAT tax for needed revenue will kill any hope of a recovery just like a hike in interest rates would, IMF reports it is short of funds, another stimulus being talked about while there is already two unborn generations needed to payoff our debt as it stands now, RE ready for the next down leg....
...I wonder if people really understand what is about to happen?
How long can they keep the shell game going? I had accounts at two banks that failed already... one of the many joys of living in Florida...
If they’re broke - it really IS a house of cards... how long do you think we have?
A friendly reminder that there are ways to check the health of your bank:
How to determine your bank's financial health, Los Angeles Times (^)
Nice link - I’ve heard there’s a high correlation between banks that fail and banks that offered higher returns. Have you heard that? Your link offered up this secondary link:
http://www.jumboratenews.com/btc_cdratewatch.asp
If you would like to be added or dropped from the Michigan ping list, please freepmail me.
Just reworked the home equity loan payments, w/Warren Bank, just hope we aren’t going to be treated like a ten year old boy at Michael Jacksons Ranch.
They were very good with us, understood, now who knows?
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