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Main Street Bank, Northville, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Main Street Bank, by Monroe Bank & Trust, Monroe, Michigan. All depositors of Main Street Bank, including any with deposits in excess of the FDIC's insurance limits, will automatically become depositors of Monroe Bank & Trust, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is...

Meridian Bank, Eldred, Illinois, was closed today by the Illinois Department of Financial Professional Regulation-Division of Banking, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC approved the assumption of all the deposits of Meridian Bank by National Bank, Hillsboro, Illinois. All depositors of Meridian Bank, including any with deposits in excess of the FDIC's insurance limits, will automatically become depositors of National Bank, and they will continue to have uninterrupted access to their money. Depositors will still be insured with the new institution. Therefore, there is no need for customers to change...

US Treasury Secretary Henry Paulson has admitted that he expects more American banks to fail despite the Bush administration's $700bn bailout plan. Mr Paulson is also warning that global financial markets remain severely strained and that the turmoil will not end quickly. Yesterday, Central Banks around the world cut interest rates by half of one percentage point in a co-ordinated move aimed at boosting the markets. Most European and Asian shares were up today as a result of the intervention.

Federal regulators today proposed doubling the amount banks pay to insure their deposits, reflecting the hit the government's insurance fund has taken by the failure of Pasadena-based IndyMac Bank and 12 other institutions this year -- and projections of more failures to come. The board of the Federal Deposit Insurance Corp. gave unanimous initial approval to a five-year plan to replenish the Deposit Insurance Fund, which has fallen below its mandated level. The fund had $45.2 billion as of June 30, representing 1.01% of insured domestic deposits. It is not supposed to fall below 1.15%, and the FDIC prefers it...

For Immediate ReleaseOffice of the Press SecretaryOctober 4, 2008 President's Radio Address   President's Radio Address  Audio  En Español       In Focus: EconomyTHE PRESIDENT: Good morning. This week, Congress passed a bipartisan rescue package to address the instability in America's financial system. This was a difficult vote for many members of the House and Senate, but voting for it was the right choice for America's economy and for taxpayers like you. I appreciate their efforts to help stop the crisis in our financial markets from spreading to our entire economy. And I appreciate their willingness to work across party lines in the...

The Federal Deposit Insurance Corp. has the authority to do a net worth certificate program without legislation. The FDIC also has the authority, in conjunction with the Treasury and Fed, to declare that an emergency exists in our financial markets and announce that the FDIC will fully protect all depositors and other general creditors of failed banks until the emergency subsides. The bailout legislation giving the FDIC unlimited borrowing authority from the Treasury is a meaningless ornament on the tree, as the FDIC is already backed by the full faith and credit of the U.S. government. snip The SEC's mark-to-market...

  Assault on the mortgage lenders: in the name of racial justice, the Clintonites want the power to decide who gets a home of his own - efforts to impose regulations on banks to make loans even if applicants are not creditworthy Robert Stowe England QUIETLY, behind the scenes, the Clinton Administration is preparing for the biggest regulatory crackdown of recent years. Attorney General Janet Reno is linking up with banking regulators and with HUD Secretary Henry Cisneros to end the supposed epidemic of discrimination against minorities in making home loans. The implications for society at large are ominous. Here,...

A satellite truck for the Fox Business Network was parked in front of William Isaac's waterfront home here Wednesday afternoon. The former head of the Federal Deposit Insurance Corp. had already been on CNN that morning. He was scheduled for Lou Dobbs and Bloomberg in the evening. The Houston Chronicle was e-mailing him questions. And CNBC wanted to know if he could be at its Washington, D.C., studios for an interview at 2:20 p.m. today. "Thumbs up or thumbs down?" Isaac's wife, Christine, who currently doubles as his secretary, asked after he returned from the Fox interview in their guest...

The package before the Senate will be similar to the House version, with these additions, the New York Times reported in its online edition: * The higher limit for insured bank deposits sought by the Federal Deposit Insurance Corp., which asked to raise the cap to $250,000 from $100,000, to quell opposition by individual and small-business depositors. * Tax breaks for businesses and alternative energy, part of a package that has been caught in a stalemate in the House of Representatives. The Senate version of the gridlocked tax legislation would cost more than $100 billion and extend and expand many...

White House contenders Barack Obama and John McCain sought to persuade skeptical Americans on Tuesday to back a $700 billion Wall Street bailout package and planned to be in Washington on Wednesday to vote on the measure. A day after the U.S. House of Representatives sent global markets reeling by rejecting the financial rescue plan, Senate leaders said on Tuesday they scheduled a Wednesday evening vote on a new version of the measure, including a big increase in the amount of bank deposits protected by the government's insurance program. The campaigns of Democrat Obama and Republican McCain said the candidates...

Up until today, the FDIC rules provided that Payable On Death ("POD") accounts could be insured on a per beneficiary basis up to $100,000 per beneficiary, but only if the beneficiary was "qualifying." In order to be "qualifying," a beneficiary had to fall within one of five categories of relationships to the owner: the beneficiary had to be a spouse, child, grandchild, sibling or parent of the owner of the account. [delete words on irrevocable trusts] That has ALL CHANGED. The FDIC has adopted an interim rule amending the deposit insurance provisions on revocable trusts and payable on death accounts....

Call it the birth of Citichovia. In another day of Wall Street’s epic saga, news came today that Citigroup will acquire Wachovia’s banking operations for $2.1 billion in stock and will assume another $53 billion in Wachovia debt. Which leaves Wachovia customers scratching their heads, as Washington Mutual customers were last week. But there’s a big difference between the Wachovia and WaMu dealings — time.

Millions of Washington Mutual customers woke up Friday morning fearing that their life savings, checking accounts and mortgages were in danger, after federal regulators seized the bank’s assets and sold them in a fire sale Thursday night. Despite assurances by the federal government that it guarantees deposits of up to $100,000, customers descended upon bank branches to yank out their money on Friday, hoping it was still there.

A new problem that needs to be solved: We need to have the Federal Deposit Insurance Corporation up its limits right now, perhaps to as high as $500,000 with additional protection available for some cost. We need to have corporate and trust accounts of multiple millions to be able to get insurance from the FDIC. We need it because right now throughout the country we are seeing CFOs, lawyers, wealthy people pulling their money out of savings accounts and asking for T-bills. This is killing lending and it has to do with how long we have dragged this out and...

JPMorgan Chase acquired the banking operations of Washington Mutual Bank in a transaction facilitated by the Federal Deposit Insurance Corporation. All depositors are fully protected and there will be no cost to the Deposit Insurance Fund. "For all depositors and other customers of Washington Mutual Bank, this is simply a combination of two banks," said FDIC Chairman Sheila C. Bair. "For bank customers, it will be a seamless transition. There will be no interruption in services and bank customers should expect business as usual come Friday morning." JPMorgan Chase acquired the assets, assumed the qualified financial contracts and made a...

No excerpt per FR copyright policy.

WASHINGTON, Sept 23 - Banks can expect to pay significantly higher premiums for deposit insurance starting next month, the head of the Federal Deposit Insurance Corp said on Tuesday. "We are going to be raising premiums in early October, not shockingly but significantly," FDIC Chairman Sheila Bair said during a discussion on housing and financial markets. Bair repeated her view that the Deposit Insurance Fund, which stood at $45 billion at the end of June, has sufficient funds to withstand an expected increase in bank failures. "I think, actually, the banking sector is holding up pretty well," she said.

The Federal Deposit Insurance Corporation said in a statement late in the day that deposits at Ameribank's Ohio branches have been transferred to the Citizens Savings Bank, and Ameribank's three Ohio branches will reopen Saturday as Citizens Savings Bank branches.

Federal bank insurance fund dwindling, regulators consider options for replenishing it Banks are not the only ones struggling in the growing financial crisis. The fund established to insure their deposits is also feeling the pinch, and the taxpayer may be the lender of last resort. The Federal Deposit Insurance Corp., whose insurance fund has slipped below the minimum target level set by Congress, could be forced to tap tax dollars through a Treasury Department loan if Washington Mutual Inc., the nation's largest thrift, or another struggling rival fails, economists and industry analysts said Tuesday. Treasury has already come to the...

The failure of Alpharetta’s Integrity Bank has likely wiped out the investments of some notable Atlantans, including CNN anchor Lou Dobbs and a legislator that serves on the state Senate’s bank committee.

Las Vegas - The Nevada Financial Institutions Division (FID) today announced that it has taken possession of Silver State Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

SAN FRANCISCO (MarketWatch) -- Alpharetta, Georgia-based Integrity Bank has been closed by regulators and its assets have been transferred to Regions Financial Corp., Regions said in a prepared statement late Friday. The Federal Deposit Insurance Corp. assumed some $900 million in total deposits from Integrity and has transferred them to Regions (RF), Regions said, adding that, "the FDIC will retain most of Integrity Bank's loan portfolio for later disposition."Integrity's closure is the 10th bank failure so far this year. The bank had $1.1 billion in total assets and $974 million in total deposits as of June 30, the FDIC said.

Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported. The borrowing could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the paper said. The borrowed money would be repaid once the assets of that failed bank are sold. "I would not rule out the possibility that at some point we may need to tap into (short-term) lines of credit with the Treasury for working capital, not to cover our losses,"...

Federal Deposit Insurance Corp (FDIC) might have to borrow money from the Treasury Department to see it through an expected wave of bank failures, the Wall Street Journal reported. The borrowing could be needed to cover short-term cash-flow pressures caused by reimbursing depositors immediately after the failure of a bank, the paper said. The borrowed money would be repaid once the assets of that failed bank are sold. "I would not rule out the possibility that at some point we may need to tap into (short-term) lines of credit with the Treasury for working capital, not to cover our losses,"...

The FDIC said 117 banks and thrifts were considered to be in trouble in the second quarter, up from 90 in the prior quarter. The FDIC doesn't reveal the names of the banks on the list, but it does give the total assets of these institutions...

The FDIC is starting to increase its staff for what it expects to be a large number of bank failures. Currently, the FDIC has 4,600 employees. It is hiring 70 new employees and bringing back 70 retirees. The FDIC's Atlanta regional office, which covers seven states from West Virginia to Florida, also recently boosted its bank examiner and professional staff by about 10 percent, to about 300. The agency is also expected to soon raise the insurance premiums it charges banks and thrifts to begin rebuilding its reserves...

The Columbian Bank and Trust Company, Topeka, Kansas, was closed today by the Kansas Bank Commissioner J. Thomas Thull, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Bank and Trust, Chillicothe, Missouri, to assume the insured deposits of The Columbian Bank and Trust Company. The nine branches of The Columbian Bank and Trust Company will reopen on Monday as branches of Citizens Bank and Trust. Depositors of the failed bank will automatically become depositors of Citizens Bank and Trust. Deposits will continue to...

Financial Entities On The Brink Lehman (LEH)Washington Mutual (WM)Fannie Mae (FNM)Freddie Mac (FRE)Corus Bank (CORS)BankUnited (BKUNA)Downey Savings (DSL)Wachovia (WB)Regions Financial (RF)MBIA (MBI)Ambac (ABK)

The global financial crisis is set to get worse, with a large US bank likely to collapse in the next few months, a former IMF chief economist has warned. Kenneth Rogoff's comments came as shares in Fannie Mae and Freddie Mac sank on a report that the home lenders would, in effect, be nationalised. Despite hopes that the US economy had turned the corner, Mr Rogoff claimed it was "not out of the woods". "I would even go further to say 'the worst is to come'," he said. "We're not just going to see mid-sized banks go under in the...

FDIC Fund Strained by Bank Failures May Lift Premiums (Update2)

WASHINGTON (Reuters) - Bank regulators closed a small Florida-based bank on Friday, the eighth U.S. bank to fail this year under pressure from a weak economy and a credit crisis precipitated by falling home prices. The Federal Deposit Insurance Corp said First Priority Bank had $259 million in assets and $227 million in deposits and its failure will cost the federal fund that insures deposits an estimated $72 million. SunTrust Banks Inc (NYSE:STI - News) has agreed to assume the insured deposits of First Priority, whose six branches will reopen Monday as branches of SunTrust Bank. Customers can access their...

<p>OMAHA, Neb., Jul 25, 2008 (BUSINESS WIRE) ----Mutual of Omaha Bank has agreed to acquire from the FDIC the deposits of the failed Reno, Nev.,-based First National Bank of Nevada and its affiliate, First Heritage Bank of Newport Beach, Calif., the company announced.</p>

By John Poirier WASHINGTON (Reuters) - U.S. regulators took over two banks on Friday and sold them to Mutual of Omaha Bank, the sixth and seventh bank failures this year as financial institutions struggle with a housing bust and credit crunch. ADVERTISEMENT Two weeks after the Federal Deposit Insurance Corp seized IndyMac Bancorp Inc (Other OTC:IDMC.PK - News), the Office of the Comptroller of the Currency said it closed First National Bank of Nevada and First Heritage Bank NA of California. First National had total assets of $3.4 billion and $3 billion in deposits while First Heritage had assets of...

WASHINGTON -- The country's largest banks, particularly those more likely to fail, will have to make changes to the way they treat deposits, as federal banking regulators prepare for more trouble in the struggling banking industry. The Federal Deposit Insurance Corp., led by Chairman Sheila Bair, on Thursday issued new rules requiring around 160 of the largest banks -- those with at least $2 billion in domestic deposits and either $20 billion in assets or 250,000 deposits accounts -- to adopt new procedures allowing banking regulators to settle existing accounts in the event of a bank failure.

Insofar as a currency derives its strength from the balance sheet of the issuing central bank, the euro is unsound and becoming more so, as Mr. Mersch did not quite say. We, however, will say it for him. In fact, we will say the same for most of the leading monetary brands, that of the United States not excluded. The mortgage mess is the immediate cause of the new debasement. A long-held article of central banking dogma is the remote cause.

Five banks have gone into receivership this year, the latest of which is IndyMac which became the largest OTS-regulated savings and loan to fail and second-biggest financial institution to close behind Continental Illinois in 1984, according to the FDIC. Nonetheless, the FDIC is very fond of saying "No saver has ever lost a dime in federally insured deposits." That's fine and dandy but inquiring minds are looking ahead and asking "How much uninsured money is at risk, not just at IndyMac but in the entire system?" It's a good question, but first let's dig a litter deeper into what is...

Selected excertps... IndyMac Bancorp Inc., the failed thrift, reopened its doors under federal control Monday and promptly moved to toss ailing homeowners a lifeline by halting all foreclosures on the mortgages it owns. "We can't make any promises," Ms. Bair said. "We're going to look at each one before we are going to let them continue on to foreclosure, and when we find people who want to stay in their homes, we are going to try to work with them to see if we can modify their loan." What's less certain, for example, is how the FDIC is going to...

Sen. Charles Schumer, hit with criticism from a federal regulator that he contributed to the failure of IndyMac Bank, said he may have caused some depositors to withdraw their money but said he wasn't responsible for the bank's downfall... He said he wrote letters to federal agencies in June, and then made them public... Sen. Schumer's office publicized the letter June 27... IndyMac...said Mr. Schumer's statements caused "elevated customer inquiries and withdrawals" ...and that about $100 million had been withdrawn. Traffic remained "somewhat elevated" on July 1, the bank reported, but was "substantially lower..." Sen. Schumer pointed to that statement...

PASADENA, California (Reuters) - IndyMac Bancorp Inc customers lined up outside a branch at the company's headquarters on Monday, hoping to withdraw their money after regulators seized what was once one of the largest mortgage lenders in the United States.

$1.3 billion in losses, brought to you by Chuck Schumer We're seeing the third largest bank failure in United States history today with the seizure of IndyMac by federal regulators (emphasis added): IndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators, in the third-largest bank failure in U.S. history. IndyMac is the biggest mortgage lender to go under since a fall in housing prices and surge in defaults began rippling through the economy last year -- and it likely won't be the last. Banking regulators are bracing for a slew of...

Federal officials aren’t supposed to cause bank runs. In fact, much of the New Deal bank regulatory apparatus was set up for the purpose of eliminating such panics. When FDR was hit with a massive set of bank runs shortly after taking office, he gave an address in order to calm terrified depositors, assuring them that the banks would reopen shortly, and that everything would be fine. But Chuck Schumer is no FDR. He doesn’t stop bank runs; he starts them. Or, at least, has started one. The collapse of Indymac bank, the second largest bank failure in American history,...

...IndyMac Bank, F.S.B. had total assets of $32.01 billion and total deposits of $19.06 billion as of March 31, 2008. As conservator, the FDIC will operate IndyMac. IndyMac's failure is the first bank failure in California since 2003 and is expected to cost the FDIC between $4 billion and $8 billion. At the time of closing, IndyMac Bank, F.S.B. had about $1 billion of potentially uninsured deposits held by approximately 10,000 depositors, according to the FDIC.

ndyMac Bank, a prolific mortgage specialist that helped fuel the housing boom, was seized Friday by federal regulators, in the third-largest bank failure in U.S. history. IndyMac is the biggest mortgage lender to go under since a fall in housing prices and surge in defaults began rippling through the economy last year -- and it likely won't be the last. Banking regulators are bracing for a slew of failures over the next year as analysts say housing prices have yet to bottom out. The collapse is expected to cost the Federal Deposit Insurance Corp. between $4 billion and $8 billion,...

IndyMac Bancorp became the biggest retail bank to fall victim to the US mortgage crisis on Friday, as regulators shut down the Californian savings back after the markets closed because it was unable to raise the cash needed to make good the almost $900 million of losses it has suffered in the worst housing crisis since the Great Depression. The Federal Deposit Insurance Corporation, which regulates the bank, said it would take over the running of the group from when it will be called IndyMac Federal Bank. IndyMac specialises in so-called Alt-A mortgages, relatively high-risk homeloans which don't require borrowers...

On July 11, 2008, IndyMac Bank, F.S.B., Pasadena, CA was closed by the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC) was named Conservator. All non-brokered insured deposit accounts and substantially all of the assets of IndyMac Bank, F.S.B. have been transferred to IndyMac Federal Bank, F.S.B. (IndyMac Federal Bank), Pasadena, CA ("assuming institution") a newly chartered full-service FDIC-insured institution. No advance notice is given to the public when a financial institution is closed. The FDIC has assembled useful information regarding your relationship with this institution. Besides a checking account, you may have Certificates of Deposit,...

Battling rumors that it may collapse, Pasadena-based IndyMac Bancorp acknowledged Monday that its financial position had deteriorated but described the fears as overblown and said it was working with regulators to improve its "safety and soundness." IndyMac, a national home lender burned by the mortgage meltdown, went public after depositors lined up at San Gabriel Valley branches starting Friday to pull out their money. Striving to reassure them, the thrift said nearly all their deposits were insured by the Federal Deposit Insurance Corp.

NEW YORK (MarketWatch) -- Amplifying on the discussion about increasing oversight of the global financial system, one of America's top banking regulators called for more restrictions on risk, liquidity and capital at investment banks. ... "It makes sense to extend some form of greater prudential regulation to investment banks as well as a process or protocol for dealing with a systemically significant investment bank approaching failure," Sheila Bair, chairman of the Federal Deposit Insurance Corp., said Wednesday. ... Big brokerage firms like Goldman Sachs Group, Lehman Brothers Holdings and Morgan Stanley are facing increasing calls that they should be regulated...

Future U.S. bank failures linked to the downturn in the real estate market may include "institutions of greater size" than in the recent past, Federal Deposit Insurance Corp Chairman Sheila Bair said on Thursday. An increasing number of banks face high exposure to deteriorating conditions in commercial real estate and construction lending, Bair told a Senate Banking Committee hearing on the state of the banking industry. "There is also the possibility that future failures could include institutions of greater size than we have seen in the recent past," Bair said. "Uncertainties in today's economic environment continue to pose significant challenges...

Former Gov. Brereton Jones has borrowed heavily from a financially distressed bank that he and several other Democratic Party leaders founded in 2001, according to interviews and bank records. Federal regulators have criticized the directors of Frankfort-based American Founders Bank, including Jones, for inadequate supervision. The bank was badly managed and suffered "hazardous lending and lax collection practices," which left it with far too many unpaid loans, according to the Federal Deposit Insurance Corp. Among the specific concerns cited was improper reporting and recordkeeping of insider loans to bank directors and executives. The FDIC issued a cease-and-desist order to the...

Federal Deposit Insurance Corp. Chairwoman Sheila Bair said Monday policy makers needed to consider a more “activist” government response to prevent an escalation of foreclosures even if such measures aren’t “politically popular.” In a speech to the Equipment Leasing and Finance Association at a Washington hotel, Ms. Bair said policy makers must be “honest” with the American people about the need for such a move, adding that it would likely include some federal spending. Among Ms. Bair’s points: 1) An activist government response with tax dollars is likely needed as voluntary loan modifications aren’t working fast enough. “We’ve got a...