October 2008
The Archives
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10.26.08North Georgia business bankruptcy filings surgeFrom the Atlanta Journal and Constitution: The popped housing bubble and crushed credit market have pushed record numbers of North Georgia businesses into bankruptcy court this year. Chapter 11 filings are up between 50 percent and 70 percent over all of last year, depending on how they’re counted. They’re also up significantly from any of the past 20 years — and there are almost 10 weeks left in 2008. As of Friday, 283 companies and their affiliates had filed for Chapter 11 protection from creditors in Georgia’s Northern District, which has offices in Atlanta, Gainesville, Newnan and Rome. Jeffrey Kelley, head of the bankruptcy practice ...
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10.25.08Number 16: Alpha Bank and TrustFrom Housing Wire: Alpharetta, Georgia-based Alpha Bank and Trust became the latest Friday-afternoon casualty in a growing line of failed banks, with the Federal Deposit Insurance Corp. saying that the Georgia Department of Banking and Finance had closed the bank and named the FDIC receiver. St. Cloud, Minn.-based Stearns Bank will assume all insured deposits at the bank under a purchase and assumption agreement, the FDIC said in a press statement. Alpha Bank is the nation’s 16th bank failure this year, and like many of the others before it, is a small community banking outfit. As of Sept. 30, 2008, the bank ...
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10.17.08Housing starts, stopFrom the USA Today: Construction of new homes fell to a 17-1/2 year low in September and the worsening housing slump and growing turmoil in financial markets helped pushed permits for new homes to a nearly 27-year low. The Commerce Department said Friday that starts on new homes fell 6.3% to a seasonally adjusted annual rate 817,000 units, slowest pace since January 1991. This was well below the 880,000 rate economists expected. The September rate of starts on single-family homes fell 12% to a 544,000-unit annual rate, slowest pace since August 1982. With falling home prices, soaring foreclosures and financial turmoil curtailing the availability ...
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10.12.08Two more banks fail, 2008 tally to 15From Reuters: U.S. regulators took over two small banks on Friday, in Michigan and Illinois, bringing the tally of bank failures to 15 so far this year. The Federal Deposit Insurance Corp. said it had seized Main Street Bank of Northville, Michigan, and Meridian Bank of Eldred, Illinois. Main Street Bank had total assets of $98 million and total deposits of $86 million as of October 7, the FDIC said, while Meridian Bank had $39.2 million in total assets and $36.9 million in total deposits as of September 25. The two failures are expected to cost the U.S. bank deposit insurance fund, that stood ...
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10.08.08Iceland on brink of national bankruptcyThink the financial crisis is bad here? Things could be worse: we could be in Iceland. Iceland's Prime Minister has given a televised speech warning that the country faces possible "national bankruptcy" due to the global financial crisis. Geir Haarde made the comments last night following a day of panic on stock markets across the world. Iceland is particular exposed to the financial crisis as its banking sector totally dwarves the rest of the economy. The situation has led to soaring inflation and a massive fall in the value of the Icelandic krona. The Government has introduced emergency legislation giving it sweeping new powers over ...
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10.08.08Fed shaves half a pointThe Federal Reserve, joining banks across the world, just announced that it was cutting interest rates by half a percent to 1.5 percent as the credit crunch, brought on by housing troubles, continues to roil worldwide. The Only Way To Shave, originally uploaded by Leviathor.
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10.06.08BofA in $8.6 billion settlement over Countrywide loansFrom Reuters: As part of a settlement with state attorneys general that could be worth as much as $8.6 billion, Bank of America Corp (BAC.N: Quote, Profile, Research, Stock Buzz) said on Monday it would cut interest rates and principal on some troubled mortgages originated by Countrywide Financial Corp. Bank of America, which bought Countrywide in July, reached a deal with attorneys general representing 11 states in which it will offer more affordable and sustainable mortgage payments for borrowers who had financed their homes with subprime loans or adjustable-rate mortgages serviced by Countrywide. "This is good," said Christopher Whalen, managing director at Institutional ...