Three more U.S. banks closed down

Three more U.S. banks closed down

As soon as the lil pundit began giving away corporate welfare, the corporate leaderships began a run on the US Treasury!

TRhey want their share of the Taxdollars before they dry up!

Thats it comrade tow the party line.

An interesting word ...

... “tow”, and its very clear you don’t understand how to use it. Plus your level of comprehension has fallen from your lil ledge.

What consumers need to know...
:confused:
Problem banks: What you need to know
July 26, 2008: Bank failures put a sharp focus on FDIC ratings of banks facing financial problems. Here are answers to some common questions.

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The federal rescue on Friday of two more failing banks - two weeks after the high-profile seizure of IndyMac Bank - leaves many Americans wondering whether their bank is safe. The bottom line: the vast majority of banks are in good shape, and when banks do fail, customers rarely lose money because most deposits are insured.

But the bank failures raise questions about how regulators identify the small number of troublesome banks - what the FDIC calls its “problem list." The list, published every three months, included 90 banks in the first quarter of 2008, up from 76 at the end of last year. The number has been increasing since the third quarter of 2006, when it hit a historic low of 47. Total assets at the problem institutions stand at $26.3 billion.

What is the problem list?

Problem banks have serious deficiencies in their finances, operations or management that threaten their continued viability. The Federal Deposit Insurance Corp. publishes the number of banks in this condition in its Quarterly Banking Profile report. The agency doesn’t reveal the banks' names, but it does give the total assets of these institutions.

[url=http://money.cnn.com/2008/07/26/news/economy/fdic_list_what_it_means/index.htm:
How does a bank get on the list?[/url]

Mess

What a mess our country is in, all because of greed.

Another one fails...
:eek:
Florida bank closed by FDIC
August 1, 2008: First Priority Bank becomes the eighth bank failure of the year. Branches will reopen as Sun Trust Bank.

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Federal regulators closed Florida’s First Priority Bank on Friday, marking the eighth bank failure of the year. The Federal Deposit Insurance Corp., which was named the receiver of the failed bank, entered into an agreement with Atlanta-based SunTrust Bank to assume the insured deposits of First Priority. All six branches of the Bradenton, Fla.-based bank will reopen on Monday as branches of SunTrust. First Priority depositors will automatically become depositors of SunTrust, the FDIC said.

First Priority had assets of $259 million and total deposits of $227 million, according to the FDIC. That includes $13 million in uninsured deposits held in approximately 840 accounts that potentially exceeded the federal insurance limits. Account holders with more than the $100,000 insured limit will essentially “become a creditor” of the failed bank, said FDIC spokesman Andrew Gray. Those accounts will be credited as the FDIC sells more of the failed bank’s assets, Gray said.

SunTrust Bank will purchase approximately $42 million of the failed First Priority’s assets, which are made up of mainly cash, cash equivalents and securities. And LNV Corp. of Plano, Texas, a subsidiary of Beal Bank Nevada, will purchase $14 million in First Priority’s assets. The remaining $171 million in assets will be sold by the FDIC. Proceeds of these sales will be used to pay creditors including bank clients whose accounts exceed the $100,000 limit. Customers with accounts in excess of $100,000 should contact the FDIC toll free at 1-800-837-0215.

[url:
http://money.cnn.com/2008/08/01/news/companies/FDIC_bank_closure/index.htm[/url]

More banks gonna fail...
:eek:
Hundreds of banks will fail, Roubini tells Barron’s
Sun Aug 3, 2008 - The United States is in the second inning of a recession that will last for at least 18 months and help kill off hundreds of banks, influential economist and New York University Professor Nouriel Roubini told Barron’s in Sunday’s edition.

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Taxpayers will pay a big price for helping bail out the rest of the financial services industry as well, Roubini said — at least $1 trillion and more likely $2 trillion.

The banks will become insolvent because of mounting losses as a result of the housing bust and because they have only written down their subprime loans so far, he said. Still in front of them are their consumer-credit losses, for which they lack the reserves, Barron’s reported. He also said there are hundreds of millions of dollars outstanding in home-equity loans that could be worth zero, too.

U.S. consumers, meanwhile, are “shopped out” and saving less, while the Federal Reserve’s performance in handling the crisis has been poor, Roubini said, because it failed to see that the problem extended beyond subprime mortgage debt. Now, Roubini told Barron’s, the government is overregulating, bailing out troubled participants and intervening in every market.

More [url:
http://www.reuters.com/article/wtMostRead/idUSN0344130720080803[/url]

See also:

Credit crisis poised to spread well beyond U.S. roots
Tue Aug 5, 2008 - The side effects of the year-long global financial market upheaval have hit hardest in the countries that had binged on easy credit — first and foremost the United States, but also Britain and Spain.

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Thanks to steep food and energy prices that are shrinking consumer discretionary spending and hindering central banks from responding to the credit crisis with lower short-term interest rates, the problems look set to spread far and wide. “Amid convulsing financial markets, we see increasing evidence that the global economy is entering a significant slowdown period, with the weakest readings to come," said Steven Wieting, an economist with Citigroup in New York.

One year after markets seized up on concerns over failing subprime mortgages, banks have incurred some $400 billion in losses and write-downs. That leaves them with less to lend, slowing the flow of credit to the consumers and companies that power the global economy. U.S. consumers who banked on rising home values to finance their retirements and pad their disposable income are now faced with the prospect of saving the old-fashioned way — spending less than they earn. That points to a prolonged period of subpar economic growth in the United States, with collateral damage spreading globally.

“In Asia, Europe, and Latin America, while the pace differs, growth is slowing virtually everywhere," said Morgan Stanley economist Richard Berner. “The culprits: spillovers from the U.S. slowdown, higher inflation, reduced energy subsidies, tighter monetary policies and tighter financial conditions."

More [url:
http://www.reuters.com/article/reutersEdge/idUSN0430507920080805[/url]