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Lucky Number 99 in 2009? 99 FDIC Insured Bank Closures That Is...
The FDIC was appointed receiver of San Joaquin Bank of Bakersfield, California, a bank which had $775 million in assets and some $631 million in deposits just a few weeks ago.
The bank’s deposits will be assumed by Citizens Business Bank of Ontario, California, with five branches opening as Citizens.
The San Joaquin Bank failure will cost the FDIC’s insurance fund some $103 million.
’09 is sure to be a banner year. 99 bank failures so far this year, compared to just 25 last year and a paltry three in 2007. 2009 will yield the highest number of bank closures since the savings and loan crisis circa 1992- when 120 collapsed. Closures peaked in 1989, when 534 banks were closed.
Some think up to 400 banks could fail in the next couple of years.
But this is small potatoes, really. WaMu fell last year, a $307 Billion operation. IndyMac too, a $10.7 Billion loss for the FDIC.
Alabama based Colonial Bank is the biggest failure this year, and among the largest in history with about $25 billion in assets- a $2.8 Billion loss for the FDIC.
I'm just marking the milestone. Almost triple digits. Numbers not seen in the better part of two decades.
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I would guess that the only reason this particular bank was "failed" is that Sheila knew that if she let 2 weeks go by with no bank failures, then everyone would start whispering that the FDIC was simply out of ammo. This was small enough to cover with what $ she had left and buys her another week to try and come up with more cash.
Yep... agree with that...
something is clearly eerie about this calm....
i don't think it is a cash issue. let's face it, bair can tap treasury, even though she and summer's waterboy timmer have a little snit. i'm sure they are concerned with the MSM picking up on this and perhaps bair is waiting for the bank's pre pay cash.
because of the fact that there are so many banks to go, perhaps it is as simple as only taking out those that literally cannot go another day.
is a big regional in a positon as described just above that is commanding the efforts and resources? by resources, i'm also talking the labor aspect because a lot of work has to go into these matters and it is an operational nightmare.
i dunno. something is weird though
The calm before the storm, the eye of the hurricane. Call it what we will, it won't change what's obvious.
For all the names we call the masters of the universe, stupid should never be one of them. These people see what we see and they are very very good at protecting themselves and their own.
If we can see the storm clouds on the horizon, so can they. While we have been screaming for them to fix the problems, to do the right thing, they have been busy building storm cellars and secure areas to hunker down in just in case the Ponzi schemes, corruption and embezzlement can't be contained.
The real difference between them and us is simple. We on average are constrained by ethics, empathy and compassion. They are not. As soon as we lose sight of this fact, we have lost.
In their minds, winning is all about doing whatever you must do in order to win. The question in battle is always the same. How far will you go to win? What atrocities will you commit to succeed? Who are you willing to forsake? How can you use your opponents weakness against him? How far down into hell are you willing to walk and what are you willing to sacrifice?
We think our superior size and moral high ground will allow us to overcome. These are our weaknesses, not our strengths.
"The real difference between them and us is simple. We on average are constrained by ethics, empathy and compassion. They are not. As soon as we lose sight of this fact, we have lost."
Awesome insight as usual CD... they unfortunately will do anything to preserve the status quo or kill us all trying...
The Treasury "Tap" is new territory for the FDIC.
I would really like to see a ZH in-depth focus piece on the FDIC in their new role of toxic waste disposal.
Is Bair having second thoughts about the ethics of FDIC as toxic backstop, or the new FDIC "bad bank" holding company.
One question could be Mrs Bair, thanks for your testomony, exactly how do you price those toxic assets when closing down a failing Bank Holding Company? Well, if they are really worth that amount why can't you sell this to the acquiring bank so the FDIC does not have to deal with the mess?
Insuring deposits is one thing, being a toxic stooge is another, or perhaps its a PPIP problem of conscious.
Gawker To Start Stalking Goldmanites
http://www.businessinsider.com/watch-out-goldmanites-gawker-announces-pl...
Stalk? Yo, those fools gonna get got.
only one bank is closed, after none last week... while FDIC waits for banks to pre-pay their 3-years of premiums before the deadline, and then start shutting down the ones that don't pay for their "protection"...
test test
EDIT: it's ok Marla, was just a glitch obviously. Glad i'm no being banned.
You banned?? r u kidding, your the ringleader! I log on just to see what your bitching about daily...and who your offending....lol ;-)
Looks like they found enough change under the seat cushions in the FDIC executive sofa to take down one small bank Friday.
Which means the other 300-400 banks ready to fail now are just racking up more losses the taxpayer will ultimately be saddled with.
What a way to run an insane asylum.
"change under the seat cushions"
Priceless... thanks!
Whatever happened to the 'bad bank' concept?...
Unless they ALL already are.
And with that you hit the nail on the head.
A few months ago, i saw a video that... applies perfectly to now. Feel free to check it. The most sensitive persons, don´t check it :)
http://www.liberdadedescolha.com/2009/10/um-americano-em-furia.html
Interesting piece with bizarre ramificactions over on Market Ticker. A reader there tracked down a number of Florida mortgages, which had ultimately been sliced and diced into MBS', and found rampant fraud (most by JPMorgan).
Without a clear and legal paper trail, foreclosure cannot be carried out. Thus, foreclosed homeowners may not only get to stay in their homes, they need not pay anything ever again because there isn't any legal recourse for the current paperholder.
This brings to mind two things:
1) MBS's are worth even less than the market currently prices them at, and the trillion dollars worth that Bernanke has slurped up on our behalf are toast.
2) An enterprising lawyer can start a business offering homeowners the right to reduce their payments by, say, 80%. The lawyer can them find out if the mortgage had been fraudulantly acquired by an IB for securitization, in which case the homeowner has nothing to fear by halting mortgage payments. The fee charged by the lawyer can be, say, the equivalent of 20% of the normal mortgage payment. Nice annuity for a struggling lawyer, and money in the pocket of the homeowner.
I have read elsewhere about borrowers calling for original mortgage documentation. Is this similar to what you are mentioning?
Chinny buddy...
If this is for real it could be a real game changer for alot of people.
Won't help the country out of the pickle it's in but hey it'll be worth pulling up a chair and poppin up some popcorn for...
those assignments and recordation dates sure looked prima facie.
i cannot for the life of me see how HUD and local, state, or Justice Dept people can avoid this one. i hope that the jpm GC got that article right away.
It is deceiving to state WAMU "fell". They were completely liquid and were well-capitalized at the time of seizure (The OTS' words, not mine). They were under no directive from the FDIC/OTS to raise equity and the parent held back billions in cash, in case they needed extra to pay off depositors (JPM took that money too, from the parent. We get a possible ruling on that next week).
Notice how every bank closure has cost the FDIC money?
Except WAMU. FDIC took $0 loss on WAMU(the only bank they didn't take a loss on) and JPM was forced to immediately take billions of negative goodwill.
The FDIC will eventually need to cover additional billions in losses once they eventually lose their trial with WMI and/or WMB (will probably be years, though).
I don't recall enough of the details, but were there REPO lines being cut with FHLB-SF (by chance) ? If the ability to repo out loan collateral for ST liquidity was becoming "scarce"...never a good thing. Perhaps WM didn't fail...former CEO Killinger sure as hell came close.
Also...no loss-sharing arrangement in place between JPM & FDIC? That was becoming more common at that time. Like I said, precise details escape me.
Too many more to come. FDIC knows the names of the other 1500 banks that have failed. Do you realize how many more Fridays it will take at this reporting rate to convince the blogging world that banks are going bust.
I get it, please FDIC, report it all now so we can quite reading about it.
99 Banks with their ass to the wall,
99 Banks risk arrears,
You take one down,
F.D.I.C. all around,
100 Banks with their ass to the wall.
100 Banks with their ass to the wall.
100 Banks risk arrears,
You take one down,
F.D.I.C. all around,
101 Banks with their ass to the wall.
...
(Ok, well, maybe linear counting isn't severe enough ...)
99 Banks with their ass to the wall, 99 Banks risk arrears, You take one down, F.D.I.C. all around, 100 Banks with their ass to the wall. 100 Banks with their ass to the wall. 100 Banks risk arrears, You take one down, F.D.I.C. all around, 101 Banks with their ass to the wall. ... (Ok, well, maybe linear counting isn't severe enough ...)
A ticking time bomb from now till 01 Jan 2010:-
http://www.bloomberg.com/apps/news?pid=20601087&sid=afIJc.I4vpbs
http://www.chapman.com/media/news/media.710.pdf
Thanks for the links,
Within the bankers cries we get a glimpse of the real exposure to real estate writedowns, and by extension, the realization that you cannot mask a price correction indefinitely.
Citi is perhaps the saddest lose-lose situation for the tax payer at this time, even ranking above AIG. Lets say we push Citi to reveal its true exposure to writedowns, and by doing so, find out that, after all of the infusion of Gov/Fed cash, the company is still insolvent. There is an outrage in the public forum and the bank is slowly blacklisted, and fails as a result.
The Gov meddling in the private sector is an economic nightmare, from which I fear, the tax payer will never awake.
"Crowds Out’
The rule “could lead to the result that every $1 billion of additional capital held from newly consolidated assets ‘crowds out’ more than $15 billion in loans,” Paul Ackerman, Wells Fargo’s treasurer, wrote.."
Clearly not the same concern regarding the billions in bonuses.
the Grapes of Wrath Branch..
Bigger news hiding behind the headlines is that of Sterling Bank of Washington State as a proxy to that State's entire system:
"Sterling is the (2nd largest and the) 14th bank statewide that is operating under a cease-and-desist order, an enforcement action that also requires it to come up with a turnaround plan (by Dec 15th) to bolster the institution’s financial position.
http://bankimplode.com/blog/2009/10/16/sterling-financial-corporation/
Basically, IMHO, the entire banking system of that State is now propped up by fictional reserves that, instead of creating an alarm for a need to create a plan to proceed through a organized statewide unwind is instead setting itself up for a complete collapse unless we can all achieve a state of perpetual Nirvana as to the facts.
The State of Georgia is becoming upset about being outdone by our Northwest friends.
chindit13 .... do you have a link? I ask because I am trying to put together a piece to get to the bottom of JPM's bullshit.
i believe this is the piece.
http://market-ticker.denninger.net/archives/1513-A-Birdie-On-Possible-Foreclosure-Frauds.html
Deadhead has it right below. Sorry for the delay.
From the article it seems that things got quite sloppy toward the end of the securitization boom and a lot of legal formalities were dispensed with. Not being a lawyer, I hope that someone of that persuasion on this site chimes in regarding foreclosure law. If this is as Denninger suggests, the banks are in for a world of hurt and a lot of folks are going to be doing time.
What is interesting about the article on MT is that the original writer instructs on how anyone can track this information down, which I assume a lot of people are now doing.
Someone above used the words "potential gamechanger". That would seem, at first blush, an understatement.
Zero last week and one this week, has the FDIC well run dry?
99 brokers of mortgages on the wall,
99 brokers on the wall;
you take one down, pass it around,
98 brokers of mortgages on the wall.
Impressed with the capture questions:
(-28) minus x equals minus fourteen.
Wow a decent level of thinking required.