Regulators Shut down 5 More Banks; 89 Failures This Year

Featured Story

The Bible records two instances of Jesus cleansing the temple of money changers and those selling sacrificial animals. Jesus’ first encounter with money changers was at the beginning of His three-year ministry (John 2:14–16). He made a whip of cords and drove them out. The second time He confronted the money changers was the week before His trial and crucifixion. Seeing that the money changers had come back, He again drove them out, saying, “It is written, ‘My house will be called a house of prayer,’ but you are making it ‘a den of robbers’” (Matthew 21:13).

Regulators on Friday shut down banks in Missouri, Illinois, Iowa, and Arizona, pushing to 89 the number of banks that have failed this year under the weight of the soured economy and rising loan defaults.

The Federal Deposit Insurance Corp. took over First Bank of Kansas City, based in Kansas City, Mo., with $16 million in assets and $15 million in deposits and shut down Sioux City, Iowa-based Vantus Bank with $458 million in assets and $368 million in deposits.

The FDIC seized two banks in Illinois; Oak Forest-based InBank, with $212 million in assets and $199 million in deposits and Platinum Community Bank in Rolling Meadows, which had $346 million in assets and $305 million in deposits.

First State Bank in Flagstaff, Ariz. was also shuttered by the FDIC. The bank had $105 million in assets and deposits totaling $95 million.

The agency said First Bank of Kansas City’s deposits will be assumed by Great American Bank based in De Soto, Kan. Its sole branch will reopen Saturday as a branch of Great American Bank.

Vantus Bank’s deposits will be assumed by Great Southern Bank in Springfield, Mo. All 15 of Vantus Bank’s branches will reopen Saturday as branches of Great Southern Bank.

In addition, the FDIC agreed to share with Great Southern Bank losses on about $338 million of Vantus Bank’s assets.

Nearly all of InBank’s deposits will be assumed by MB Financial Bank in Chicago. Some brokered deposits will not be assumed by MB Financial Bank. InBank’s three branches will reopen Saturday as branches of MB Financial Bank.

The FDIC did not find another bank to take over Platinum Community Bank’s branches or deposits. Instead, the FDIC will pay out insured deposits at Platinum Community Bank. Government direct deposits, such as Social Security and veterans’ payments, will be handled by MB Financial Bank’s Palatine, Ill. branch.

The FDIC insures accounts up to $250,000. Depositors with accounts larger than $250,000 will be able to receive details about whether their accounts are fully covered beginning Tuesday by checking the FDIC’s website.

First State Bank’s deposits will be acquired by Sunwest Bank in Tustin, Calif. First State Bank’s six branches will reopen Tuesday as branches of Sunwest Bank.

The failure of First Bank of Kansas City is expected to cost the FDIC’s deposit insurance fund an estimated $6 million. InBank’s failure will cost the insurance fund $66 million, while Vantus Bank’s failure will cost the fund $168 million. Platinum Community Bank’s failure will cost the fund about $114 million. First State Bank’s collapse will cost the FDIC’s insurance fund $47 million.

Hundreds of more banks are expected to fail in the next few years largely because of souring loans for commercial real estate. The number of banks on the FDIC’s confidential “problem list” jumped to 416 at the end of June from 305 in the first quarter. That’s the highest number since June 1994, during the savings-and-loan crisis.

Last month, Guaranty Bank became the second-largest U.S. bank to fail this year after the big Texas lender was shut down and most of its operations sold at a loss of billions of dollars for the government to a major Spanish bank. The failure, the 10th-largest in U.S. history, is expected to cost the insurance fund an estimated $3 billion.

The sale of most of the Austin-based Guaranty’s operations to the U.S. division of Banco Bilbao Vizcaya Argentaria, Spain’s No. 2 bank, marked the first time a foreign bank has bought a failed American bank during the current financial crisis.

The insurance fund has been so depleted by the epidemic of collapsing financial institutions that some analysts have warned it could sink into the red by the end of this year. The fund fell 20% to $10.4 billion at the end of June, the FDIC reported Thursday.

That’s its lowest point since 1992, at the height of the S&L crisis. The agency estimates bank failures will cost the fund around $70 billion through 2013.

U.S. banks overall lost $3.7 billion in the second quarter, compared with a profit of $7.6 billion in the January-March quarter, according to the FDIC. Surging levels of soured loans at banks dragged down profits in the April-June period.

FDIC Chairman Sheila Bair has said there were no immediate plans to borrow money from the government to replenish the insurance fund by tapping the agency’s $500 billion credit line with the Treasury. The FDIC may, however, impose an additional fee on U.S. banks this year to bolster the fund, atop the estimated $5.6 billion from a new emergency premium that took effect June 30.

The FDIC is fully backed by the government, which means depositors’ money is guaranteed up to $250,000 per account. And the agency still has billions in loss reserves — including $21.6 billion in cash — apart from the insurance fund.

Last week, the FDIC opened the door wider for private investors to buy failed financial institutions. The FDIC’s board voted to reduce the cash that private equity funds must maintain in banks they acquire.

Private equity funds have been criticized as excessive risk-takers. But with fewer healthy banks willing to buy ailing institutions, the banking crisis has softened the FDIC’s resistance to private buyers.

Editor, Bankster Crime

StevieRay Hansen
Editor, Bankster Crime

MY MISSION IS NOT TO CONVINCE YOU, ONLY TO INFORM…

#Fraud #Banks #Money #Corruption #Bankers,#Powerful Politicians, #Businessmen

Source
BanksterCrime


Don't Miss

Capitalism In America: How A Dismal Decimal Is Robbing Americans Blind

By StevieRay Hansen

There is no hiding anymore, the United States has become an oligarch owned banana republic with nukes, and with a monopoly currency which has allowed it…

Read More

STAGGERING GLOBAL DEBT OF $253 TRILLION IS A DISASTER WAITING TO HAPPEN

By StevieRay Hansen

Global debt has reached a staggering $253 trillion. This is a disaster waiting to happen, as the world’s total debt surged by some $9 trillion…

Read More

12 Signs That The Economy Is Seriously Slowing Down As 2020 Begins

By StevieRay Hansen

Lost in all of the headlines about Iran and impeachment is the fact that the U.S. economic slowdown which began during the latter stages of…

Read More

Nine States Headed For Recession In Six-Months, Most Since Financial Crisis

By StevieRay Hansen

President Trump’s core campaign promise was to “Make America Great Again,” through a revival of the manufacturing complex via launching a trade war against China and…

Read More

Oil Prices Jump as the US, Iran Trade Blows

By StevieRay Hansen

Experts believe that the market will self-correct as it did on multiple occasions in 2019 despite Mideast tensions US President Donald Trump’s decision to assassinate…

Read More

Bernanke Hints At Negative Rates, “Purchases Of Private Securities” To Fight Next Recession

By StevieRay Hansen

…We can’t rule out the possibility that, at some point in the next few years, our economy will slow, perhaps significantly. How would the Federal Reserve…

Read More

What Upstanding Citizens Believe Vs. What Crazy Conspiracy Theorists Believe

By StevieRay Hansen

Authored by Caitlin Johnstone via Medium.com, Source Crazy, stupid conspiracy theorists believe a mature worldview requires skepticism toward power. Smart upstanding citizens believe the government is your…

Read More

The Next Ten Years In Oil Markets

By StevieRay Hansen

An eventful 2019 wraps up a decade of turmoil in oil markets, in which Brent Crude prices fluctuated from as high as US$125 a barrel in 2012 to as…

Read More

Chasing Apple Shares Higher Here “Is Extremely Dangerous”

By StevieRay Hansen

Greed is responsible for much sorrow. The Bible says in 1 Timothy 6:10, “the love of money is the root of all kinds of evil.” But is greed…

Read More

Deplorables Versus The Ruling Class: A Global Struggle

By StevieRay Hansen

Consider the age of monarchs.  Squabbling barons select a supreme ruler – a king or an emperor — to suppress the squabbling.  Peace and prosperity return…

Read More

StevieRay Hansen

2 Comments

  1. […] Regulators Shut down 5 More Banks; 89 Failures This Year RPT-How to say the ‘R-word’: bank executives grapple with recession talk Financial and Banking Cover-ups […]

  2. […] Regulators Shut down 5 More Banks; 89 Failures This Year RPT-How to say the ‘R-word’: bank executives grapple with recession talk Financial and Banking Cover-ups […]

Leave a Comment