Archive for the ‘Failed Banks’ Category

Bank failure backstory

April 12, 2009

Saturday I posted about New Frontier Bank in Colorado being taken over by the FDIC.  The backstory on the bank is that last year they had problems with their lending practices and had regulators demanding the bank clean up its books.  In December 2008, it was operating under a cease and desist order requiring New Frontier to raise capital, cut bad debt and fire its top official.  Early this month, a deal with a local private investment firm fell apart and that was it for New Frontier.


Two more failed banks

April 11, 2009

Cape Fear Bank, Wilmington, NC

Named after the Robert Mitchum movie, no doubt.

New Frontier Bank, Greeley, CO

Why no transparency? Here’s the answer

April 6, 2009

Last month I posted about a conversation Terry Gross had with Gretchen Morgenson, a business editor for the New York Times about why the Treasury Department under Obama, in the new era of transparency, is doing the opposite, stonewalling on information about how bailout money is being used.  At that time I posed the question, why?  My first quess was because the government was afraid people would panic if they knew the truth. 

Now William Black, a regulator involved in the saving and loan situation back in the late eighties, affirms my guess in an interview with Bill Moyers.

WILLIAM K. BLACK: Absolutely, because they are scared to death. All right? They’re scared to death of a collapse. They’re afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we’ll run screaming to the exits. And we won’t rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it’s foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. But I think they are sincerely just panicked about, “We just can’t let the big banks fail.” That’s wrong.


Another Georgia bank fails

March 27, 2009

Omni National Bank

Three more failed banks

March 22, 2009

Georgia bank latest failure

March 7, 2009

Only one this week:

Freedom Bank of Georgia, Commerce, GA

Two more failed banks

February 28, 2009

That makes sixteen so far this year.

Security Savings Bank, Henderson, NV

Heritage Community Bank, Glenwood, IL

Oregon bank fails

February 22, 2009

Only one bank this week.

Silver Falls Bank, Silverton OR

Four more failed banks

February 14, 2009

Is there some rule that they have to seize banks on Friday?  Maybe they need the weekend to re-open.

Pinnacle Bank of Oregon, Beaverton, OR

Corn Belt Bank and Trust Company, Pittsfield, IL

Sherman County Bank, Loup City, NE

Riverside Bank of the Gulf Coast, Cape Coral, FL

3 more failed banks

February 7, 2009

County Bank, Merced, CA

Alliance Bank, Culver City, CA

FirstBank Financial Services, McDonough, GA