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SATURDAY, NOVEMBER 21, 2009
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NEWS ABOUT: bank failure

bank failure stories: 41 news summaries

1 - 20 of 41 Stories | 1 2 3 Next >>

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 Danger Signs 
 Ignored at 
 Failed Banks 

Regulators knew loans were toxic but didn't act

Nov 19, 09 3:43 AM CST
(Newser) - "Post-mortems" on banks that failed during the financial crisis are exposing serious misjudgment by state and federal regulators. Inspectors-general are finding at bank after bank that regulators were aware that risky and potentially toxic loans were being made while the economy was booming, but failed to take action, the... More »

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FDIC • bank failure • bank regulation • banking industry • Sheila Bair

Sorry, FDIC Can't Guarantee Interest on That CD 

When selling failed banks, Feds allow buyers to slash expected payout

Nov 4, 09 9:38 AM CST
(Newser) - There’s a little-publicized part of your bank deposit the FDIC doesn’t insure, and it’s driving scrupulous savers up the wall. The logic is simple enough: When the FDIC takes over a failed bank and resells its assets, it allows buyers to alter interest rates, particularly on CDs.... More »

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CDs • certificates of deposit • FDIC • bank failure • interest rates • assets • life savings

 As Failures Mount, FDIC 
 Asks Banks to Prepay 

Regulator wants cash upfront through 2013 to avoid emergency credit line

Sep 30, 09 7:03 AM CDT
(Newser) - The FDIC is set to ask banks to prepay three years of fees to replenish its coffers after a wave of bank failures, estimated to cost as much as $100 billion. Banks would be asked to prepay $45 billion of their quarterly assessments, but they wouldn't have to report the... More »

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FDIC • bank failure • financial crisis • Sheila Bair • regulator

FDIC May Borrow Billions From Banks

Tapped-out deposit insurance fund
mulls reverse bailout

Sep 22, 09 6:37 AM CDT
(Newser) - After a year of government bailing out the banks, now the banks may bail out the government. Regulators are considering a plan for the FDIC, which protects bank depositors, to borrow billions from healthy banks, enabling the fund to refresh its accounts after a wave of bank failures. Banks and... More »

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bank • FDIC • bailout • bank failure • deposit insurance • Sheila Bair • Timothy Geithner

 Troubled Securities 
 Threaten to Drown Banks 

Feds set to seize Texas' Guaranty

Aug 21, 09 10:48 AM CDT
(Newser) - Bad loans have been killing off banks at the fastest rate in 17 years—but now, securities purchased from other banks are a mounting threat, the Wall Street Journal reports. Thousands of banks nabbed securities dependent on mortgages and the financial industry. “Under most scenarios, they were good and... More »

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bank • securities • mortgage backed securities • financial institutions • housing crisis • bank failure

(Newser) - Alabama's Colonial Bank has collapsed in the sixth-biggest bank failure in American history, the Wall Street Journal reports. The lender, which had assets of $25 billion and 346 branches in five southern states, was an aggressive mortgage lender in overheated markets like Florida, and its failure will cost the FDIC ... More »

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bank • FDIC • bank failure • financial crisis • deposit insurance • TARP • Colonial Bank

(Newser) - Iceland held fast to its independence as it rocketed to become one of the world's richest nations. But after a spectacular bust that decimated its currency and felled its government, the island nation has voted to join the EU. The accession plans are a victory for the country's new PM,... More »

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European Union • Europe • Iceland • bank failure • financial crisis • Johanna Sigurdardottir

Feds Seize Florida
Bank in $4.9B Bust

BankUnited sold off to private equity consortium

May 22, 09 5:05 AM CDT
(Newser) - Florida's BankUnited went bust yesterday as the FDIC seized the critically undercapitalized bank and sold it off to a private-equity team including Blackstone, reports the Wall Street Journal. BankUnited's troubles stemmed from overeager moves in the housing market. It specialized in loans for foreigners wanting to buy Florida property. After... More »

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Florida • Blackstone • FDIC • bank failure • mortgage defaults • financial crisis • BankUnited

OPINION

 Time to Stress Out 
 About Stress Tests 

Washington is leading us to a second crisis: Krugman

May 8, 09 7:22 AM CDT
(Newser) - Sure, yesterday's release of the stress tests' results felt pretty anti-climatic. But while bankers might be reassured, Americans have no reason to be, writes Paul Krugman. For the New York Times columnist, the less-than-rigorous stress tests are part and parcel of an Obama administration strategy to "muddle through the... More »

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Barack Obama • Wall Street • recession • bank failure • Obama administration • recapitalization • Timothy Geithner • stress tests

analysis

Stress Tests Expected to Show Confidence in Banks

Administration ready to say bailout worked

May 4, 09 6:46 AM CDT
(Newser) - The top US banks may not be as deep in the mud as analysts fear, government "stress tests" out Thursday are expected to show. Officials seem ready to argue that the nation's financial system is recovering and won't require more bailout funds from Congress. "None of these banks... More »

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recession • bank • bank failure • Obama administration • financial crisis • stress tests

(Newser) - The FDIC has shut down a Georgia-based bank that was the largest in the country to accept deposits exclusively from other banks, the Wall Street Journal reports. Some argued that Silverton Bank—known as the Bankers' Bank until last year—was “too big to fail.” The FDIC... More »

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Georgia • FDIC • bank failure • economic crisis • Silverton Bank • banker's bank

 Fed Describes 'Stress Tests' 


Apr 24, 09 4:06 PM CDT
(Newser) - At the behest of the Federal Reserve, the 19 biggest US banks are projecting their losses on 12 categories of financial product such as loans and mortgage securities, the New York Times reports. The Fed, which asked the institutions to project a hypothetical scenario of a “stressed economic environment,... More »

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Federal Reserve • bank • Treasury Department • bank failure • financial crisis • stress tests

MARKETS

 Banks Fall; Dow Slides 122 

But indices lock in first two-week winning streak in nearly a year

Mar 20, 09 3:20 PM CDT
(Newser) - Stocks fell today but managed to lock in the first two consecutive weeks of gains since May 2008, the Wall Street Journal reports. Comments from FDIC chair Sheila Bair that she expects bank failures to drain her agency sank financials, with the broader market following suit. The Dow dropped 122.... More »

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Dow Jones • Nasdaq • FDIC • S&P 500 • bank failure • financial stocks • Sheila Bair

(Newser) - The irony is, well, rich. Former executives of Countrywide Financial—the bank whose risky loans to homeowners have become synonymous with the subprime mess—are now making a mint helping the government fix things, the New York Times reports. A dozen former Countrywide executives, including President Stanford L. Kurland, have... More »

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subprime mortgages • Countrywide Financial • credit crisis • bank failure • banking industry

(Newser) - The federal government has begun its so-called "stress tests" of the nation's big banks, reports the Los Angeles Times. The tests will run through April, and the banks will have to prove they can withstand a worsening economy—even if unemployment rises above 10% and home prices decline 22%.... More »

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bank failure • banking industry • Wall Street bailout • TARP

Dodd Backs Nationalizing Banks; White House Doesn't

Banking chair weighs short-term moves

Feb 20, 09 3:19 PM CST
(Newser) - Chris Dodd says the US may have to nationalize the most troubled banks for “a short time” to save the financial system, Bloomberg reports. The chairman of the Senate Banking Committee joined Ben Bernanke and Alan Greenspan in calling for serious consideration of nationalizing flailing institutions such as Bank... More »

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Citigroup • Bank of America • nationalization • recession • bank • Chris Dodd • Senate Banking Committee • bank failure • financial crisis

Nationalize Some Banks:
Greenspan

Ex-Fed head abandons free-market purism, wants temporary move

Feb 18, 09 8:06 AM CST
(Newser) - Alan Greenspan, once famed for his light touch, now says the US may have to temporarily nationalize some banks. The former Fed chairman said in an interview with the Financial Times that some institutions need government ownership to restore liquidity and help shore up the larger financial system. "In... More »

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Federal Reserve • Alan Greenspan • nationalization • liquidity • laissez faire economics • bank failure • Lindsay Graham

Iceland to Appoint First Openly Gay Woman as PM

Ex-flight attendant to lead until May elections

Jan 28, 09 9:30 AM CST
(AP) - Iceland is set to appoint the world's first openly gay woman as prime minister: a former flight attendant who rose through the political ranks to become a cabinet minister. Johanna Sigurdardottir, the 66-year-old social affairs minister, is the pick of the Social Democratic Alliance Party to lead an interim government.... More »

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lesbians • European Union • Europe • Iceland • prime minister • interim government • bank failure • Bill Maher Grid

Wreck of IndyMac Sold
for $13.9B

Soros, Dell among the players in FDIC's damaged-goods sale

Jan 3, 09 8:41 AM CST
(Newser) - A team of high-profile investors has bought the remains of failed bank IndyMac from the FDIC for $13.9 billion, the Wall Street Journal reports. The investors, including George Soros and computer tycoon Michael Dell, have agreed to share the losses from IndyMac's portfolio of troubled mortgages in a deal... More »

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private equity • J. C. Flowers • bank • Michael Dell • IndyMac • George Soros • FDIC • subprime crisis • bank failure • financial crisis

Sloppy Lehman Bankruptcy Killed Billions in Value

Speedy process leaves creditors hanging

Dec 29, 08 1:40 PM CST
(Newser) - Had Lehman Brothers been more careful in its bankruptcy filing, it could have held on to as much as $75 billion that was destroyed in the process, the firm’s head restructuring agents say. A better-planned filing would have allowed the sale of some assets outside of court proceedings and... More »

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Wall Street • contracts • bankruptcy • asset management • Lehman Brothers • default • bank failure • financial crisis

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