WASHINGTON (AP) -- Regulators have shut down three banks in Puerto Rico and one each in Michigan and Missouri, bringing the number of U.S. bank failures this year to 62.
The Federal Deposit Insurance Corp. took over the banks: Westernbank Puerto Rico, based in Mayaguez, with about $11.9 billion in assets; R-G Premier Bank of Puerto Rico, based in Hato Rey, with around $5.9 billion in assets; and San Juan-based Eurobank, with $2.5 billion in assets.
The FDIC also seized CF Bancorp, based in Port Huron, Mich., with about $1.6 billion in assets; and Champion Bank, in Creve Coeur, Mo., with $187.3 million in assets.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
WASHINGTON (AP) -- Regulators on Friday shut down three banks in Puerto Rico, bringing the number of U.S. bank failures this year to 60.
The Federal Deposit Insurance Corp. took over the banks: Westernbank Puerto Rico, based in Mayaguez, with about $11.9 billion in assets; R-G Premier Bank of Puerto Rico, based in Hato Rey, with around $5.9 billion in assets; and San Juan-based Eurobank, with $2.5 billion in assets.
Banco Popular de Puerto Rico agreed to acquire the deposits and about $9.4 billion of Westernbank's assets. The FDIC will keep the remainder for eventual sale. Scotiabank de Puerto Rico agreed to buy all the assets and deposits of R-G Premier Bank. And Oriental Bank and Trust is acquiring all the assets and deposits of Eurobank. The three acquiring banks are based in San Juan, the Puerto Rican capital.
In addition, the FDIC and Banco Popular agreed to share losses on $8.8 billion of Westernbank's loans and other assets. The agency and Scotiabank agreed to share losses on $5.4 billion of R-G Premier Bank's assets, while the FDIC and Oriental Bank and Trust are to share losses on $1.6 billion of Eurobank's assets.
The failure of Westernbank is expected to cost the deposit insurance fund $3.3 billion; the failure of R-G Premier Bank is expected to cost $1.2 billion; that of Eurobank, $743.9 million.
There were 140 bank failures in the U.S. last year, the highest annual tally since 1992, at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion. Twenty-five banks failed in 2008 and only three succumbed in 2007.
The number of bank failures likely will peak this year and will be slightly higher than in 2009, FDIC Chairman Sheila Bair said recently.
As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, hitting a $20.9 billion deficit as of Dec. 31.
The number of banks on the FDIC's confidential "problem" list jumped to 702 in the fourth quarter from 552 three months earlier, even as the industry squeezed out a small profit. Still, nearly one in every three banks reported a net loss for the latest quarter.
The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.
The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.
Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. Apart from the fund, the FDIC has about $66 billion in cash and securities available in reserve to cover losses at failed banks.
Friday, April 30, 2010
Thursday, April 29, 2010
Thoughts
Though this was an impressive day for the bulls and the might still be looking for that 1230 on the S&P, but if they can't this is the level they must swing if they want to break the bears back from tuesday's action.
Wednesday, April 28, 2010
Downgrades
Greece now Spain. Europe seem to be in a mess. This is might be start of the failing of nations. Maybe Google will buy Greece and Spain :)
Tuesday, April 27, 2010
Today
As usual the days when I take off for personal stuff we get expansion days. We should get a bounce tomorrow as the TRINS ended above 2 but what is to note here is the massive volume distributed today on the downside. Are the bears back I have no idea but 1230 was my extreme measurement on the S&P and that area has yet to be pushed by the bulls.
Wait on see mode here
Saturday, April 24, 2010
More banks fold
NEW YORK (AP) -- Regulators on Friday shut down seven banks in Illinois, putting the number of U.S. bank failures this year at 57.
The Federal Deposit Insurance Corp. took over four banks in Chicago: New Century Bank, with $485.6 million in assets; Citizens Bank&Trust Company, with $77.3 million in assets; Broadway Bank, with $1.2 billion in assets; and Lincoln Park Savings Bank, with $199.9 million in assets.
The FDIC also took over Amcore Bank of Rockford, which had $3.8 billion in assets; Peotone Bank and Trust Company in Peotone, with $130.2 million in assets; and Wheatland Bank of Naperville, with $437.2 million in assets.
MB Financial Bank agreed to acquire the deposits of both Broadway Bank and New Century Bank. Republic Bank of Chicago agreed to assume Citizens' deposits, while Chicago-based Harris National Association agreed to acquire Amcore Bank's deposits.
Northbrook Bank and Trust Company of NorthBrook agreed to acquire the deposits of Lincoln Park Savings Bank. First Midwest Bank of Itasca agreed to assume Peotone Bank and Trust's deposits. Wheaton Bank & Trust will acquire the deposits of Wheatland Bank.
The failure of Broadway Bank is expected to cost the FDIC's deposit insurance fund $394.3 million. For the other banks, the estimated costs are: Amcore Bank, $220.3 million; New Century Bank, $125.3 million; Citizens Bank&Trust Company, $20.9 million; Lincoln Park Savings Bank, $48.4 million; Peotone Bank and Trust Company, $31.7 million; and Wheatland Bank, $133 million.
Broadway Bank was owned by the family of Illinois Treasurer Alexi Giannoulias, a Democrat who is running for President Barack Obama's old Senate seat. The bank was heavy into real estate loans and lost $75 million last year.
There were 140 bank failures in the U.S. last year, the highest annual tally since 1992 at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion. Twenty-five banks failed in 2008 and only three succumbed in 2007.
The number of bank failures likely will peak this year and will be slightly higher than in 2009, FDIC Chairman Sheila Bair said recently.
As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, hitting a $20.9 billion deficit as of Dec. 31.
The number of banks on the FDIC's confidential "problem" list jumped to 702 in the fourth quarter from 552 three months earlier, even as the industry squeezed out a small profit. Still, nearly one in every three banks reported a net loss for the latest quarter.
The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.
The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.
Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. Apart from the fund, the FDIC has about $66 billion in cash and securities available in reserve to cover losses at failed banks.
The Federal Deposit Insurance Corp. took over four banks in Chicago: New Century Bank, with $485.6 million in assets; Citizens Bank&Trust Company, with $77.3 million in assets; Broadway Bank, with $1.2 billion in assets; and Lincoln Park Savings Bank, with $199.9 million in assets.
The FDIC also took over Amcore Bank of Rockford, which had $3.8 billion in assets; Peotone Bank and Trust Company in Peotone, with $130.2 million in assets; and Wheatland Bank of Naperville, with $437.2 million in assets.
MB Financial Bank agreed to acquire the deposits of both Broadway Bank and New Century Bank. Republic Bank of Chicago agreed to assume Citizens' deposits, while Chicago-based Harris National Association agreed to acquire Amcore Bank's deposits.
Northbrook Bank and Trust Company of NorthBrook agreed to acquire the deposits of Lincoln Park Savings Bank. First Midwest Bank of Itasca agreed to assume Peotone Bank and Trust's deposits. Wheaton Bank & Trust will acquire the deposits of Wheatland Bank.
The failure of Broadway Bank is expected to cost the FDIC's deposit insurance fund $394.3 million. For the other banks, the estimated costs are: Amcore Bank, $220.3 million; New Century Bank, $125.3 million; Citizens Bank&Trust Company, $20.9 million; Lincoln Park Savings Bank, $48.4 million; Peotone Bank and Trust Company, $31.7 million; and Wheatland Bank, $133 million.
Broadway Bank was owned by the family of Illinois Treasurer Alexi Giannoulias, a Democrat who is running for President Barack Obama's old Senate seat. The bank was heavy into real estate loans and lost $75 million last year.
There were 140 bank failures in the U.S. last year, the highest annual tally since 1992 at the height of the savings and loan crisis. They cost the insurance fund more than $30 billion. Twenty-five banks failed in 2008 and only three succumbed in 2007.
The number of bank failures likely will peak this year and will be slightly higher than in 2009, FDIC Chairman Sheila Bair said recently.
As losses have mounted on loans made for commercial property and development, the growing bank failures have sapped billions of dollars out of the deposit insurance fund. It fell into the red last year, hitting a $20.9 billion deficit as of Dec. 31.
The number of banks on the FDIC's confidential "problem" list jumped to 702 in the fourth quarter from 552 three months earlier, even as the industry squeezed out a small profit. Still, nearly one in every three banks reported a net loss for the latest quarter.
The FDIC expects the cost of resolving failed banks to grow to about $100 billion over the next four years.
The agency mandated last year that banks prepay about $45 billion in premiums, for 2010 through 2012, to replenish the insurance fund.
Depositors' money -- insured up to $250,000 per account -- is not at risk, with the FDIC backed by the government. Apart from the fund, the FDIC has about $66 billion in cash and securities available in reserve to cover losses at failed banks.
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