Category
Bank Failures
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08.25.08Bank failure: Columbian Bank and TrustFrom the FDIC press release: 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 ...
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08.18.08Prime mortgages get hit, dashing recovery prospectsFrom CNN: Prime mortgages are starting to record disturbingly high default rates, which could slow any potential housing recovery. The delinquency rate for prime mortgages worth less than $417,000 was 2.44% in May, compared with 1.38% during May of 2007, according to LoanPerformance, a unit of First American (FAF, Fortune 500) CoreLogic which compiles and analyzes residential mortgage statistics. Delinquencies jumped even more for prime loans of more than $417,000, so called jumbo loans. They rose to 4.03% of outstanding loans in May, compared with 1.11% a year earlier. And prime loans issued in early 2007 are performing the worst of all, failing at ...
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08.18.08More bank failures expectedFrom CNBC: More banks are likely to fail before the financial sector recovers, market pros say, which is creating a cautionary environment for both investors and consumers. With the housing rescue package that made its way through Congress last week aimed primarily at mortgage giants Fannie Mae and Freddie Mac, the rest of the industry will essentially be left to fend for itself amid a largely dour outlook for consumers and the economy. That lesson got sent home in a big way over the weekend, when the Federal Deposit Insurance Corp ordered the closing of two small banks, First National Bank of Nevada ...
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08.18.08FDIC shuts down two regional banksFrom CNN: The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed late Friday by federal regulators. The banks, owned by Scottsdale, Ariz.-based First National Bank Holding Co., were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said. The FDIC said the takeover of the failed banks was the least costly resolution and all depositors — including those with funds in excess of FDIC insurance limits — will switch to Mutual of Omaha with “the full amount of their deposits.” The FDIC also said accountholders ...