Moody’s Announces Massive Downgrade Review for 23 US Regional Banks
March 12, 2009
From ZeroHedge:
Moody’s action is based on the expectation for higher credit losses than previously anticipated and banks ratings most likely to be affected are those with significant commercial real estate exposure, specifically construction and land development.
Banks facing a possible one-notch downgrade include:
Astoria Financial, BancWest, B&T, BMW Bank of North America, Capital One Financial Corp., Citizens Republic Bancorp, Inc., First Citizens BancShares, Inc., Fulton Financial Corporation, KeyCorp, M&T Bank Corporation, Pacific Capital Bancorp, PNC Financial Services Group, Inc., South Financial Group, Inc., Susquehanna Bancshares, Inc., Trustmark Corporation, U.S. Bancorp, United Bankshares, Inc.
Banks facing a possible two notch downgrade include:
Fifth Third Bancorp, Huntington Bancshares Incorporated, SunTrust Banks, Inc., Synovus Financial Corp., UCBH Holdings, Inc., UnionBanCal Corporation, Western Alliance Bancorporation, Wilmington Trust Corporation.
Banks that are expected to receive a three notch downgrade include:
BBVAPR Holding Corporation, Colonial BancGroup, Inc., Compass Bancshares, Inc., Zions Bancorporation.
Check out Zero Hedge’s post here, and has shared this link to the document:
Moody’s reviews US regional bank ratings
Failed: Freedom Bank of Georgia, Commerce, GA
March 6, 2009
From FDIC Press Release:
Freedom Bank of Georgia, Commerce, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Northeast Georgia Bank, Lavonia, Georgia, to assume all of the deposits of Freedom Bank of Georgia.
The four offices of Freedom Bank of Georgia will reopen on Monday as branches of Northeast Georgia Bank. Depositors of Freedom Bank of Georgia will automatically become depositors of Northeast Georgia Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Northeast Georgia Bank can fully integrate the deposit records of Freedom Bank of Georgia.
Over the weekend, depositors of Freedom Bank of Georgia can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of March 4, 2009, Freedom Bank of Georgia had total assets of approximately $173 million and total deposits of $161 million. In addition to assuming all of the deposits of the failed bank, Northeast Georgia Bank agreed to purchase approximately $167 million in assets at a discount of $13.65 million. The FDIC will retain the remaining assets for later disposition.