Nine banks went out of business on Friday
Jennifer McClelland | RSS | 2 Comments
Friday market the largest amount of United States government take overs in one single day since the beginning of the financial crisis and the almost complete collapse of the financial sector of the United States.
The nine banks (which brings the total to 115 for the number of failed banks in 2009) that were taken over showed that there is a trend in the banking industry that banks are begging to be injured by bad loans that are going south quickly.
Even with these bank failures, these are smaller banks. The largest was still Washington Mutual when it was seized just over a year ago in September 2008.
The banks, which were being held by FBOP Corp, were acquired by U.S. Bancorp to the tune of $18.4 billion in assets as well as $15.4 billion of deposits. U.S. Bancorp has been going around this year purchasing distressed assets.
It is unsettling to know that banks are still failing and will likely continue to fail as more loans begin to mature and become due. There is also an issue that is coming up concerning Option-A mortgages’ rates resetting in the next year. These were a lot like the subprime mortgages that caused so much of the financial crisis. When they reset in the next couple of years, we could actually see a bigger problem than what we saw in the past two years with subprime mortgages and foreclosures.
With foreclosures on the rise and unemployment really not letting up either, the problem with banks is also going to likely get worse before it gets better. I am not sure if there will be more bank takeovers in the next year, but the FDIC was already hurting from all the banks it had to pick up after they failed
Guaranty Bank has become the third largest bank failure of 2009
As more small banks fail, the FDIC is hurting
Banks that were too big to fail are now bigger?
Tags: distressed assets, subprime mortgages, fbop corp
Vichitra from Prestito | Wed, Nov 04 2009
The closing of nine banks in one day was the most the FDIC has shut since the financial crisis began taking down banks last year. The closings boost the number of failed U.S. banks this year to 115. In 1989, during the savings and loan crisis, the FDIC closed 534 banks, or about 10 a week.
venus from auto loan calculator | Sat, Nov 28 2009
There’s always a backside of the coin. Nothing to good comes without something bad. The bank system is built that way. Read always every fine print in any bank document.