Commentaries

Now raising intellectual capital

from Rolfe Winkler:

Corus, gone

Headlining this week's bank failures is Corus out of Chicago. Condo loans in Florida and other bubbly states did 'em in. There's an odd item in the press release. It lists the bank's deposits as "approximately" $7 billion. I can't remember seeing that modifier in a bank failure press release. When you read enough of them, the littlest things jump out at you...

#90

    Failed bank: Corus Bank, Chicago IL Acquiring bank: MB Financial Bank, Chicago IL Vitals: As of June 30th, assets of $7 billion, deposits of "approx." $7 billion DIF damage: $1.7 billion

From WSJ's article on Corus' failure: "More than half of the bank's $3.9 billion in condo construction loans were in nonaccrual or foreclosure in April."

#91

    Failed bank: Brickwell Community Bank, Woodbury MN Acquiring bank: CorTrust bank, Mitchell SD Vitals: As of July 24th, assets of $72 million, deposits of $63 million DIF damage: $22 million

Mitchell, SD ... famous for the Corn Palace!

#92

    Failed bank: Venture Bank, Lacy WA Acquiring bank: First Citizens Bank & Trust, Raleigh NC Vitals: as of July 28th, assets of $970m, deposits of $903m DIF damage: $298m

from Rolfe Winkler:

Better late than never

FDIC shut down three banks on Friday evening. Still waiting on Corus (& First Fed).

#82

    Failed Bank: Bradford Bank, Baltimore MD Acquiring Bank: M&T Bank Vitals: As of June 30th, assets of $452 million, deposits of $383 million DIF Damage: $97 million

#83

from Rolfe Winkler:

Bank Failure Friday + DIF details

Another big one bites the dust.  Guaranty is the 81st failure of the year.  Plus two more in Georgia.

Below this evening's failure news I've got more detail about the Deposit Insurance Fund, including an interesting tidbit about why FDIC collected so little in premiums from 1996-2006.

from Rolfe Winkler:

Talking Colonial

from Rolfe Winkler:

Bank Failure Friday, Talking Colonial & DIF update

Five bank failures tonight, bringing the total for the year to 77.  See below for a video clip and for details about the Deposit Insurance Fund's resources.

#73

    Failed Bank: Dwelling House S&L, Pittsburgh PA Acquiring Bank: PNC Bank, Pittsburgh PA Vitals: At 3/31/09, assets of $13.4 million, deposits of $13.8 million Estimated DIF damage: $6.8 million

#74

from Rolfe Winkler:

Bank Failure Friday

Looks like Corus will survive the night.  So far there have been three failures.

#70

    Failed Bank:  First State Bank, Sarasota FL Acquiring Bank:  Stearns Bank National Assoc., St. Could MN Vitals: As of 5/31/09, assets of $463 million, deposits of $387 million DIF Damage: $116 million

#71

from Rolfe Winkler:

Bank Death Watch: Five failures + new addition

There were five bank failures tonight.  Two of meaningful size, but none in Georgia!

We're still waiting on two big fish, however, Guaranty and Corus.  In an SEC filing today, Corus said it was "critically undercapitalized" with Tier 1 Capital of $157 million.  They also admitted is was "highly unlikely" they'd be able to raise capital, so FDIC seizure is a matter of when, not if.  Next Friday may be the day. (ht CR)

Ackermann makes half-baked case for reform

In the debate about the future of financial regulation, most senior bank executives have been notable by their silence, preferring to lobby behind the scenes rather than argue their case in public.

 

So we should welcome Josef Ackermann’s effort to publicly put the case for big banks. In a long screed published in today’s FT, the chief executive of Deutsche Bank makes the argument that cross-border financial institutions are important for the success of the global economy, and that cutting them back to size would be a mistake.

from Rolfe Winkler:

Friday six-pack

Among tonight's failures are the six bank subsidiaries of Security Bank in---you guessed it---Georgia.  Taken together the six are quite substantial in terms of assets and deposits.  But first...

#58

    Failed bank:  Waterford Village Bank, Clarence NY Acquiring bank: Evans Bank National Assoc., Angola NY Vitals:  At March 31st, assets of $61.4 million, deposits of $58 million DIF Damage:  $5.6 million

#59-#64

  •