Skip to main content

Banks that go Bust – Toll reaches 50 In US

In Florida, the Federal Deposit Insurance Corporation took over Riverside National Bank, First Federal Bank of North Florida and AmericanFirst Bank. TD Bank Financial Group a division of Canadian company TD Bank (TD) took the deposits and nearly all the assets of each. Riverside National had $3.4 billion in assets, with First Federal at $393.3 million and AmericanFirst at $90.5 million.

Eight more banks failed last week,bringing the 2010 total to 50. Three of the failures were in Florida, and two were in California. Massachusetts, Michigan and Washington had one bank failure each.

For Lakeside Community Bank, in Sterling, Michigan, the FDIC couldn't find a buyer, so it will take over the direct deposit operation for federal payments (e.g., Social Security and VA benefits). Lakeside had assets of $53 million.

A bank can go bankrupt if its assets are less than its liabilities. This is not a problem for most of its customers since banks are FDIC insured, which means that the federal government insures bank deposits (up to $100,000). However, some people get confused about the difference between banks and other institutions that seem like banks, but are not. For example, you may have a money market account or brokerage account and it seems like a bank. But, look carefully at your statement and you should see the disclaimer "Not FDIC insured" somewhere on it.

A bank can go bankrupt just like any other institution or company can. Banks are typically less likely to go bankrupt than other risky industry company's though.

Yes, just like the Savings and Loans that went bankrupt in the early 80s. Charles Keating was buying influence in Washington which resulted in the Keating Five Scandal. It involved Democrats Dennis DeConcini, Alan Cranston, Don Riegle, and John Glenn plus Republican in name only John McCain. John Glenn and John McCain were exonerated, but the other three Democrats lost their jobs in the Senate.
Neil Bush, son of George HW Bush was a Director of Silverado S&L. Neil received a loan from Silverado, but was never found to have committed any crime.
So this turned out to be an exclusive Democrat scandal.

RECOVERY WATCH: Tracking the economy; see VIDEO

Last year, 140 banks failed in the U.S. That was the highest annual number since 1992 during the peak of the savings and loan crisis. The failures last year cost the FDIC's insurance fund more than $30 billion. Twenty-five banks failed in 2008 and three in 2007.

I am interested... May central banks go bankrupt?‎ - 1 post - 28 Aug 2009
Banks going bankrupt?‎ - 12 posts - 17 Sep 2008
What happens after banks go bankrupt?‎ - 3 posts - 15 Jul 2008
Which bank(s) won't go bankrupt?‎ - 12 posts - 14 Jul 2008

More results from answers.yahoo.com »

 

Comments

Popular posts from this blog

How to get a cheap Bank repossession properties ?

It would appear that repossesions are a good way to get a property under current market value, however how would you find out about them ?
Is this information available to all of us ? Is the purchase any different because it's a repo ie are lenders a bit more wary ?Solutions :If it property is being reposessed the seller (mortgage company) also considers the speed of sale - if they "could" get a higher price with another buyer they will also consider how quickly the sale could go through.
Therefore some latitude is given to agents in what offer is accepted (eg an agent can say that buyer "x" is well known to them and can proceed quickly. Buyer "b" offered 10k more but is an unknown quantity.Bank Repossesion Houses List DatabaseThese days repo's don't really go much cheaper we had one only 3 months ago and it went well over asking price. If you were to ask an agent to give you a call when one is available its very rare they would but some mig…

Fashion chain Lisa Ho in Australia in administration

Who is Lisa ho ?Lisa Ho is an Australian fashion designer born in Albury, on the New South Wales and Victorian border. She is married to Philip Smouha. WikipediaLisa Ho Designs is the latest Australian retailer to fall in financial trouble , with the high end fashion chain placed into administration last week.Dressed in a black outfit, a stony-faced Ms Ho faced creditors yesterday for the first time since the business that she founded 30 years ago was placed into administration earlier this month. It is understood she did not address the creditors.Administrators appointed for fashion houseFinancial firm HLB Mann Judd has confirmed it was appointed as administrator of the high-end fashion chain last Wednesday. The administrator will sift through the company’s assets  and liabilities and look for a suitable buyer. A creditors’ meeting is scheduled for May 20, and in the meantime all 10 stores will reportedly continue to trade.The Lisa Ho chain today comprises 10 flagship stores in Austr…

Bank Mortgage Repo sales

What is Repo sales?Repo sales is a slang used around the internet and sometimes even  among real estate agents for  houses or assets repossessed by the banks or  other financial institutions.Most of the time it is Houses repossession or repo done by the bank. These sort of houses that get  taken over by the bank due to default in payments  and other financial difficulties borne by the person who took the loan are called repo houses . These houses either go under the hammer at some auction or then  is given to real estate agents to get rid off in the market.Bank mortgages often go into default  due to various reasons and the bank at this part of time  repossesses the house  and puts it back into the marketIf you are examining repossession properties for sale in Australia do so with caution and do so carefully.  There are many bargains to be bagged, but ensure that you are buying through a reputable auction house and that if you are unsure of anything at any step of the way, seek profes…