Users Online Now: 729 (Who's On?)		Visitors Today: 176,218
Pageviews Today: 451,325	Threads Today: 570	Posts Today: 9,301
10:10 PM

News

Back to Forum

Post New Thread

View Favorites

Page 1, 2

76 BANKS IN TROUBLE - FDIC

RSS

Anonymous Coward
User ID: 373524
3/3/2008 7:07 PM
Report abusive post

76 BANKS IN TROUBLE - FDIC

Quote

New recession worry: Bank failures
Construction loan problems threaten spike in smaller bank failures and add to worry over credit crunch.

March 3 2008: 4:14 PM EST

NEW YORK (CNNMoney.com) -- As if the economy wasn't already fighting enough strong headwinds, the risk of capital shortfalls and outright failure of the nation's banks is rising.

The Federal Deposit Insurance Corp., the federal agency that backs bank deposits, last week reported the biggest jump in "problem institutions" it has seen since the savings and loan crisis of the late 1980s. While the extent of the problem is still low by historic standards, it identified 76 banks as in trouble - a 52% increase from a year ago.

FDIC Commissioner Sheila Bair among regulators set to testify Tuesday at a Senate Banking Committee hearing on the state of the banking industry.

Experts say the 76 banks now under scrutiny are likely only a small part of the problems now looming over the banking sector.

Jaret Seiberg, the financial services analyst for policy research firm Stanford Group, said it appears that regulators are expecting about 200 bank failures in the coming year or two. If that occurs, it could rival the flood of bank failures seen during the S&L crisis. In 1989, the nation saw a post-Depression era record of 206 bank failures.

And Seiberg says even more than 200 troubled banks are likely to be purchased before they reach the point of failure.

"Many of these banks are highly dependent on construction lending, and that's the area of lending that is likely to come under the most stress," he said.

The FDIC stresses that not all those banks will fail. In fact in 2007 only three banks failed, even though 50 were on the watch list at the end of the previous year. So far this year, one bank - Douglass National Bank in Kansas City, Mo. - has failed.

Still, the head of the FDIC is looking to hire 25 staffers to deal with an anticipated increase in failures, a move that would increase its staff by 11%. Among those it hopes to hire are recent retirees who worked through the S&L crisis.

The banks most at risk for failure are generally smaller ones, not the huge global banks hit by billions in writedowns from subprime mortgage problems.

Smaller banks are big players in the business of construction loans made to homebuilders - loans that were backed by new homes now worth a fraction of the original estimated value.

In the past six months, the number of construction loans that are 30 days or more delinquent has spiked, according to Foresight Analytics, an Oakland, Calif., economic- and real-estate-research company. Its figures show 7.5% of single-family construction loans were delinquent in the fourth quarter of 2007, more than double the 3.1% rate as recently as the second quarter.

Matt Anderson, a partner with Foresight Analytics, said that it is the small- and mid-size banks, those with assets of $10 billion or less, that find themselves most at risk. Their construction loans outstanding equaled about 115% of their primary supply of capital as of Dec. 31, compared to the big banks for which construction spending represents only 43% of capital.

Anderson said even non-residential developers who have not been hurt by the downturn in housing could see their funding spigot turned off.

"The demise of smaller lenders probably won't have as noticeable impact on the national level, but in a lot of local markets around the U.S. it will be felt," Anderson said. "In the short-run, for folks that may have a viable projects, it could mean those projects will go under as well."

Dean Baker, co-director of the Center for Economic and Policy Research, agreed that it will be the smaller banks in markets with the greatest economic weakness that will fail, and that will only compound the troubles in those areas, even if customers don't lose their deposits.

"It's one more downdraft," he said. "For certain areas, Detroit, Cleveland, some of the areas where the housing bubble burst, it could be real bad news. I don't see the bigger banks rushing into those areas to provide credit."

Anonymous Coward
User ID: 373524 (OP)
3/3/2008 7:09 PM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com]

Anonymous Coward
User ID: 269684
3/4/2008 10:36 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
bump -- once again they are down playing the impact.

Anonymous Coward
User ID: 340451
3/4/2008 10:40 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

232 major U.S. lending operations have "imploded"

[link to ml-implode.com]

wow more mega write downs... how long can this go on

[link to bankimplode.com]

HSBC - $26.5B (0)
Posted on March 2, 2008 5:25 PM
ABN AMRO Group - $2.4B (0)
Posted on February 28, 2008 10:19 PM
DZ BANK AG - $2.1B (0)
Posted on February 28, 2008 9:52 PM
Lehman Brothers - $3.4B (0)
Posted on February 27, 2008 8:25 PM
Citigroup - $36.6B (2)
Posted on February 27, 2008 7:13 PM
Goldman Sachs - $2.4B (0)
Posted on February 27, 2008 6:41 PM
Wachovia - $3.2B (3)
Posted on February 25, 2008 4:06 PM
The Royal Bank of Scotland Group PLC (RBS) - $3.6B (0)
Posted on February 25, 2008 12:07 AM
Mitsubishi UFJ Financial Group - $510M (0)
Posted on February 24, 2008 12:54 AM
HBOS PLC - $2.5B (0)
Posted on February 23, 2008 12:00 PM
Washington Mutual - $1.6B (0)
Posted on February 23, 2008 2:17 AM
Comerica Incorporated - $63M (0)
Posted on February 22, 2008 6:46 PM
Fifth Third Bancorp - $155M (0)
Posted on February 22, 2008 9:22 AM
IKB - $1.41B + 10.2B (0)
Posted on February 21, 2008 8:13 PM
US Bancorp - $690M (0)
Posted on February 21, 2008 12:13 PM
Royal Bank of Canada - $544M (0)
Posted on February 20, 2008 12:07 PM
Canadian Imperial Bank of Commerce - $3.2B (0)
Posted on February 20, 2008 8:33 AM
Bayerische Landesbank - $2.8B (0)
Posted on February 19, 2008 6:42 PM
Bank of Montreal (BMO) - $639M (0)
Posted on February 19, 2008 6:02 PM
Credit Suisse - $3.1B+$2.85B (est.) (0)
Posted on February 19, 2008 3:20 PM
Wells Fargo - $1.4B (0)
Posted on February 19, 2008 3:09 AM
Natixis-$1.8B (0)
Posted on February 18, 2008 12:41 PM
Mizuho Financial Group Inc - $3.2B (0)
Posted on February 18, 2008 9:45 AM
WestLB AG - ? (0)
Posted on February 17, 2008 6:05 PM
Barclays PLC - $3.1B? (0)
Posted on February 15, 2008 10:47 PM
Commerzbank - $855M (1)
Posted on February 15, 2008 9:48 AM
UBS - $19.2B (1)
Posted on February 14, 2008 3:24 AM
Deutsche Bank - $3.2B (0)
Posted on February 9, 2008 7:41 PM
Merrill Lynch - $19.4B (0)
Posted on February 4, 2008 3:22 AM
JP Morgan Chase - $3.7B (1)
Posted on February 4, 2008 1:00 AM
SunTrust - $222M (0)
Posted on January 31, 2008 6:33 PM
Bank of America - $7.2B (0)
Posted on January 31, 2008 6:28 PM
Morgan Stanley - $13.8B (0)
Posted on January 29, 2008 7:14 PM
Bear Stearns - $2.7B (0)
Posted on January 29, 2008 7:11 PM

LS
User ID: 64943
3/4/2008 10:45 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
there are 8500 banks in the US.

Anonymous Coward
User ID: 340451
3/4/2008 10:51 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
it can only go on so long before the bottom falls out its called synergy the big banks derivative bets and cdo bullshit trickles down to 8500 other banks.... I believe the top 50 banks control over half of the mony vs all the other smaller banks

Anonymous Coward
User ID: 269684
3/4/2008 10:58 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Federal Reserve Chairman Ben S. Bernanke, battling the worst housing recession in a quarter century, urged lenders to forgive portions of mortgages held by homeowners at risk of defaulting.

``Efforts by both government and private-sector entities to reduce unnecessary foreclosures are helping, but more can, and should, be done,'' Bernanke said in a speech in Orlando, Florida today. ``Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure.''

Bernanke's call goes beyond the stance of the Bush administration and previous Fed comments. By comparison, the central bank's Feb. 27 report to Congress called for lenders to ``pursue prudent loan workouts'' through means such as modifying mortgage terms and deferring payments.

The Fed chief highlighted the threat posed by home values falling below mortgage balances, something Treasury Secretary Henry Paulson played down yesterday. Bernanke said the ``recent surge'' in delinquencies has been ``closely linked'' to the slide of home equity.

ZOSIME
User ID: 384163
3/4/2008 10:59 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
Don't worry Obama will fix everything when he becomes President. aahh no worries

Anonymous Coward
User ID: 340451
3/4/2008 11:01 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Since five banks have over 50% of all deposits in the US, those five banks receive over 50% of that - in other words, over $10 billion per year, for creating money out of nothing.

[link to www.themoneymasters.com]

Question: What caused the US Housing market collapse?

Answer: The Real Causes of the Housing Market Collapse by Patrick Carmack

The National Debt now exceeds $9.2 trillion dollars. In Fiscal Year 2006 the U.S. Government spent $406 billion on interest payments.to holders of that debt. Why do we have such a gigantic debt? Because the government spends far more than it brings in revenue. More succinctly, because the government spends and spends and spends. Both main parties (Democrats and Republicans) are guilty.

On October 22, the administration submitted a request for a further $45.9 billion in war-related spending for fiscal year 2008. This request is on top of $147 billion already requested for the Department of Defense and $3.6 billion for other agencies for the fiscal year. If appropriated by Congress, the vast majority would be spent on Iraq. Total spending for the Iraq War would rise to approximately $611 billion. It is projected to exceed $1 trillion in the next two years. Unlike most programs, that somehow benefit the American public, expenditures for the Iraq War arguably do not, to the contrary, almost 4,000 U.S. soldiers have been killed and more than 60,000 wounded, not to mention the vastly greater losses of Iraqi civilians, millions of whom are now refugees.. Most Americans - now the great majority - oppose the war. Yet it continues, endlessly.

So what do unnecessary expenditures such as the Iraq War costs do to our national deficit, besides increasing it roughly $1 trillion by 2010? Here is a chart of the interest cost on government borrowing to pay for US budget deficits:

Annual Interest Costs Since 1988
(Available Historical Data Fiscal Year End)
2007 .......... $429,977,998,108.20
2006 .......... $405,872,109,315.83
2005 .......... $352,350,252,507.90
2004 .......... $321,566,323,971.29
2003 .......... $318,148,529,151.51
2002 .......... $332,536,958,599.42
2001 .......... $359,507,635,242.41
2000 .......... $361,997,734,302.36
1999 .......... $353,511,471,722.87
1998 .......... $363,823,722,920.26
1997 .......... $355,795,834,214.66
1996 .......... $343,955,076,695.15
1995 .......... $332,413,555,030.62
1994 .......... $296,277,764,246.26
1993 .......... $292,502,219,484.25
1992 .......... $292,361,073,070.74
1991 .......... $286,021,921,181.04
1990 .......... $264,852,544,615.90
1989 .......... $240,863,231,535.71
1988 .......... $214,145,028,847.73

The total for just these 20 years is well over $6.5 trillion. Interest payments in 2008 alone will exceed $425 billion. Where on earth will all that money come from? If the government borrowed it all from the credit markets (i.e., sold US government bonds - I.O.U.s) to raise the money it would dry up all available credit. Interest rates would skyrocket and the economy would collapse. So how does it do this year after year without such dire effects?

Here is the trick. Let us take, for example, a year like this year in which the government runs a $400 billion dollar deficit. The Treasury Department has to sell $400 billion in I.O.U.s (US bonds) to buyers at a rate of interest sufficient to attract their money (and beat the interest competition of other banks and governments). To avoid a credit squeeze as described above, the Federal Reserve System Open Market Committee in Washington directs the NY Fed to purchase roughly 10% of that total (or $40 billion) in existing US bonds from the current holders. In order to pay for them it creates the $40 billion - out of nothing - merely with keystrokes on a computer. This new $40 billion is deposited into the banks of the various bond sellers, thereby increasing the reserves of those banks by $40 billion.

Pursuant to the Federal Reserve Law of 1913 those banks must keep only 10% of those new deposits on "reserve." So of the $40 billion deposited, the banks may loan out $36 billion (90%), for businesses, mortgages, credit cards balance loans, to purchase government bonds - for whatever borrowers want. Those loans are in turn deposited in banks - very few folks put their money in mattresses. So of the $36 billion loaned out and then redeposited, the banks receiving the new deposits can then loan out $32.4 billion, retaining 10% or $3.6 billion as reserves. This process is repeated over and over, reduced 10% each time, until the 10% reserves retained have reduced it to zero. The end result is that the banks have loaned out $360 billion dollars, which they created out of nothing. The Fed created the first $40 billion, the banks $360 billion, equaling $400 billion dollars.

But notice, the Fed only created 10%, privately owned banks created 90% ($360 billion) - out of nothing, and loaned it out at interest. At even 6% that is $21.6 billion dollars per year in interest, going, ultimately, to the private stockholders of the banks. Since five banks have over 50% of all deposits in the US, those five banks receive over 50% of that - in other words, over $10 billion per year, for creating money out of nothing. That is profoundly unjust.

Now do you understand why the banks are the largest buildings in every town in the US? Do you understand why the bankers fought tooth and nail to get the Federal Reserve Act of 1913 passed, giving them the power to create the great majority of the US money supply (excepting a tiny fraction of coins issued by the U.S. mint)? Now do you understand why banks like wars and deficit spending, and why we unfailing have deficits every single year, regardless of which bank puppets they get elected using the mass media they own and control?

Anonymous Coward
User ID: 466891
7/12/2008 10:43 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com] Quoting: Anonymous Coward 373524

Anonymous Coward
User ID: 466891
7/12/2008 10:44 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com] Quoting: Anonymous Coward 373524

WAMU
User ID: 466893
7/12/2008 10:46 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com] Quoting: Anonymous Coward 373524

Divinity
User ID: 464760
7/12/2008 10:58 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Bump, thank you for the update.

"Aether is a Quantum 2 Spin Rotating Magnetic Field that encapsulates Primary Angular Momentum and via Tensegrity forms Matter with resulting Quantum 1/2 spin.

PHI is the direct result and first Ratio produced by this arrangement as it Cycles." Junglelord, www.thunderbolts.info

"Thought being a given is the first assertion of self-awareness; the remaining truth is simply "I am, therefore there is". Self and other, subject and object." Eyeam, GLP

Anonymous Coward
User ID: 468233
7/14/2008 8:25 PM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com] Quoting: Anonymous Coward 373524

whatever
User ID: 468351
7/15/2008 1:23 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
[link to www.fdic.gov]

erty2042
User ID: 468580
7/15/2008 10:52 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Here is a link to find a list of banks that are in trouble: [link to a11news.com]

Check it out!

Quoting: Anonymous Coward 373524

erty2042
User ID: 468580
7/15/2008 10:55 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Here is a link to a list of banks that are introuble:
[link to a11news.com]

Check it out!

Quoting: Anonymous Coward 373524

erty2042
User ID: 468580
7/15/2008 10:57 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
Here is a link to a list of banks that are currently in trouble, as of 07/15/08: [link to a11news.com] Check it out!

Anonymous Coward
User ID: 468824
7/15/2008 7:35 PM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Quoting: Anonymous Coward 340451

humblesm
User ID: 272605
7/15/2008 8:14 PM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com] Quoting: Anonymous Coward 373524

SUNTRUST
User ID: 468859
7/15/2008 9:01 PM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Quoting: Anonymous Coward 340451

[youtube]

vineyard bank
User ID: 469555
7/17/2008 2:16 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com] Quoting: Anonymous Coward 373524

Dirtfarmer Subscriber

Forum Farmer and Gas Pumper
User ID: 467739
7/17/2008 2:28 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Worship the Dow and worship housing. Let everything else go in the shitter.

How fortunate for governments that the people they administer don't think.
Adolf Hitler

Firearms are second only to the Constitution in importance; they are the peoples' liberty's teeth.
George Washington

When the government fears the people there is liberty; when the people fear the government there is tyranny.
Thomas Jefferson

We are mere journeymen, planting seeds for someone else to harvest. Melvin Tolson

"Expose yourself to your deepest fear; after that, fear has no power, and the fear of freedom shrinks and vanishes. You are free." Jim Morrison

anonomous
User ID: 469359
7/17/2008 2:54 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
how does Bank america well fargo and capitol one stack up right now on the endangered species list..

Security Bank
User ID: 470242
7/18/2008 3:25 PM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com] Quoting: Anonymous Coward 373524

Brian
User ID: 470583
7/19/2008 12:06 PM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
Why is the "Troubled Banks" list so hard to find on the FDIC's website?

Anonymous Coward
User ID: 453949
7/19/2008 12:22 PM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
Don't worry Obama will fix everything when he becomes President. aahh no worries Quoting: ZOSIME and dont forget: all your wildest dreams will come true!

cc1824
User ID: 473286
7/25/2008 10:40 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Well since most of us are already in debt and frantically trying to keep our jobs to stay above water; if it gets any worse we will all be moving from recession to depression.

Since this country is so far in debt how do we have the fund to keep giving aid to other countries when we can't even feed the starving children and adults in our own country?

Can't wait to get him out of office and someone new in office, but that may not be any better.

I think we need to worry about our own usa people and the aid they need, never mind sending aid to other countries.
do they ever send any aid to us, not that I am aware of or that I have heard of.

when are they going to realize that the lower and middle class people working in the usa are suffering to try and make ends meet.

Food, gas, energy all going up everyday! WELL OUR PAYCHECKS HAVEN'T GONE UP!!!!!! I can't afford to give up anything else. I already don't have health insurance and I live on an insulin pump and because I work for a lviing I don't qualify for the 200% below poverty level of crap.

come on 200% below poverty level that's ridic! I would love to see anyone in congress, IRS, the house live on minimum wage and see how hard it is. My husband works 2 jobs and I work just to make ends meet and we only have 2 kids and they work and go to school.

I guess we should feel lucky we have jobs right now but who knows for how long and w/o my insulin I will die.

Not only does this country need to work towards a better economy we need serious and better health care.

I would like to thank the oval office and its people for the mess we are in.

CC

Anonymous Coward
User ID: 473453
7/25/2008 5:26 PM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
LINK: [link to money.cnn.com] Quoting: Anonymous Coward 373524

thebeacondeacon
User ID: 493755
8/30/2008 3:54 AM

Re: 76 BANKS IN TROUBLE - FDIC

Quote

Dear CC:

I am fortunate to not have to be going through the same things that you are. Having to work ever harder to keep on going cannot be pleasant.

Let me suggest two things. First, find a copy of "Back To Eden" and do what the author says about treating diabetes. This should get you past your insulin issues. Second, divert some of your money toward green drinks to alkalize your body and those of your family members. For example, buy some green food powders at a health food store. If you have a Trader Joe's near you, buy and drink their Green Plant juice.

These suggestions should improve the quality of your life, and you can find more open alternatives from that standpoint. The idiots in Washington are just that, but if you saw their medical and drug agendas, you would feel a lot better.

Best regards,

thebeacondeacon

Quoting: cc1824 473286

Enufs Enuf
User ID: 339212
8/30/2008 4:53 AM

Re: 76 BANKS IN TROUBLE - FDIC	Quote
Listen to the National Intel Report on Tuesdays with Robbie Noel and Bob Chapman. They 'know'....they speak about the nwo regularly, the banksters and spritual stuff too. Very enlightening and often funny and uplifting. I pick up the show - amongst many other brilliant nwo exposes at: www.twowitnesses.com

Page 1, 2

Back to Forum

Post New Thread

View Favorites

Disclaimer:
This website exists for entertainment purposes only. The reader is responsible for discerning the validity, factuality or implications of information posted here, be it fictional or based on real events. Moderators on this forum make every effort to review the material posted on this site however, it is not realistically possible for our small staff to manually review each and every one of the more than 10,000 posts GodlikeProductions gets on a daily basis.

The content of post on this site, including but not limited to links to other web sites, are the expressed opinion of the original poster and are in no way representative of or endorsed by the owners or administration of this website. The posts on this website are the opinion of the specific author and are not statements of advice, opinion, or factual information on behalf of the owner or administration of GodlikeProductions. This site may contain adult content and if you feel you might be offended by such content, you should log off immediately.

Not all posts on this website are intended as truthful or factual assertion by their authors. Some users of this website are participating in internet role playing, with or without the use of an avatar. NO post on this website should be considered factual information on face value alone. Users are encouraged to USE DISCERNMENT and do their own follow up research while reading and posting on this website. Godlikeproductions.com reserves the right to make changes to, corrections and/or remove entirely at any time posts made on this website without notice. In addition, Godlikeproductions.com disclaims any and all liability for damages incurred directly or indirectly as a result of a post on this website.

This site is provided "as is" without warranty of any kind, either expressed or implied. You should not assume that this site is error-free or that it will be suitable for the particular purpose which you have in mind when using it. In no event shall Godlikeproductions.com be liable for any special, incidental, indirect or consequential damages of any kind, or any damages whatsoever, including, without limitation, those resulting from loss of use, data or profits, whether or not advised of the possibility of damage, and on any theory of liability, arising out of or in connection with the use or performance of this site or other documents which are referenced by or linked to this site.

Some events depicted in certain posting and threads on this website may be fictitious and any similarity to any person living or dead is merely coincidental. Some other articles may be based on actual events but which in certain cases incidents, characters and timelines have been changed for dramatic purposes. Certain characters may be composites, or entirely fictitious.

We do not discriminate against the mentally ill!

Fair Use Notice:
This site may contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. Users may make such material available in an effort to advance awareness and understanding of issues relating to civil rights, economics, individual rights, international affairs, liberty, science & technology, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C.Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
For more information please visit:
http://www.law.cornell.edu/uscode/17/107.shtml

Please be aware any communications sent complaining about a post on this website may be posted publicly at the discretion of the administration.

This Disclaimer is subject to change at anytime.

Mail Webmaster with questions or comments about this site.

Privacy Policy - Terms Of Use

Copyright 1999-2009 © GodLikeProductions.com

Page generated in 0.003s (4 queries) [Cached]