Security Savings Bank, of Henderson, Nevada closed.
February 28, 2009
From FDIC press release:
Security Savings Bank, Henderson, Nevada was closed today by the Nevada Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
Heritage Community Bank, of Glenwood, Illinois closed.
February 28, 2009
From the FDIC press release:
Heritage Community Bank, Glenwood, Illinois, was closed today by the Illinois Department of Financial Professional Regulation, Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
FDIC Problem Bank Watch List Grows
February 27, 2009
The FDIC “problem” bank watch list grew from 171 banks to 252 banks, according to the FDIC’s most recent quarterly report.
The FDIC, however, does not release the names of the banks on their list.
Source: FDIC Press Release
FDIC Bank Insurance Fund at 25 Year Low
February 27, 2009
The NY Times is reporting that the FDIC’s bank deposit insurance fund is at a 25 year low, with $19 billion, down from $52 billion at the end of 2007. The FDIC released their quarterly report which shows that banks lost $26.2 billion in the fourth quarter, the largest quarterly loss on record.
Source: NY Times
Silver Falls Bank, Silverton, OR
February 20, 2009
From the FDIC Press Release:
Silver Falls Bank, Silverton, Oregon, was closed today by the Oregon Department of Consumer and Business Services, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Bank, Corvallis, Oregon, to assume all of the deposits of Silver Falls Bank.
What Happens To Your CDs When Your Bank Fails?
February 20, 2009
A recent article in the LA Times looks at what happens to your CDs, or certificates of deposit, when your bank fails or is bought.
While your principal is safe, if your deposits are within the FDIC limits and the bank is a FDIC insured bank, the rate that you were guaranteed to recieve on your CDs is not.
Simply put, the acquiring bank is not obligated to honor the interest rates promised by the acquired bank, and the depositor has the option of accepting the new interest rate, or cash the CDs in, and receive the principal and any interest earned to date, without incurring an early withdrawal penalty.
Nationalization Talk Heats Up
February 18, 2009
In today’s Wall Street Journal opinion page Matthew Richardson and Nouriel Roubini say that Treasury Secretary Tim Geithner’s bank rescue plan, dubbed “Bailout 2.0″ points to inevitable nationalization of the failing banks:
While it was not his intention, the reality is that Mr. Geithner is going to confirm the insolvency of the financial system. Once we face this truth, there really isn’t much left to do but nationalize.
The nationalization chorus has grown, the Financial Times reports, with Alan Greenspan now supporting bank nationalization as well:
”It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring,” he said. “I understand that once in a hundred years this is what you do.”
New Unemployment Resource
February 17, 2009
As more and more layoffs are announced everyday, more people are having to file for unemployment benefits and begin looking for new jobs, in a bleak job market.
Getting laid-off from your job is stressful enough, but dealing with the overburdened bureaucracy of your state unemployment agency can be a daunting task for anyone.
There is a new resource to help those who have found themselves among the newly unemployed called The Unemployment Handbook.
In addition to information about how to file for benefits and locating your local unemployment office, there is also information about conducting a successful job search, saving and budgeting, and a blog and discussion forum.
I you have recently lost your job, or know someone who has, you’ll find the site to be a helpful resource.
#13 – Pinnacle Bank in Beaverton, Oregon
February 14, 2009
From FDIC Press Release:
Pinnacle Bank, Beaverton, Oregon, was closed today by the Oregon Division of Finance and Corporate Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Washington Trust Bank, Spokane, Washington, to assume all of the deposits of Pinnacle Bank.
Corn Belt Bank and Trust Company, Pittsfield, Illinois
February 14, 2009
From FDIC Press Release:
Corn Belt Bank and Trust Company, Pittsfield, Illinois, was closed today by the Division of Banking, Illinois Department of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with The Carlinville National Bank, Carlinville, Illinois, to assume all of the deposits of Corn Belt Bank and Trust Company.