Closure: Douglass National Bank

"FDIC Approves the Assumption of all the Deposits of Douglass National Bank, Kansas City, Missouri" Jan 25. And the closure begins.

As home owners get foreclosed or walkway from their mortgages, NPL will escalate in rather small scale (each home in the US average 200K or so -- California is around 400K). As commercial debts go NPL (especially commercial real estate or CRE, like building and apartment owners), things will go bad real quick since these loans are multi-million or billions of dollars and most banks don't have that kind of cash lying around. Small banks which bet the farm on real estate (especially developers and large building owners) will fail first but don't count out the large ones since they have other loan problems (like pier loans).

Copyright 2008, DannyHSDad, All Rights Reserved.

FDIC Closures: 2

FDIC bank failure list has few updates:

1. NetBank September 28.
2. Miami Valley Bank October 4.
   

Copyright 2007, DannyHSDad, All Rights Reserved.

Non-bank shut down: Federal Savings

"Unlicensed agency sold high-interest securities" has a very sobering news:

But Seattle-based Federal Savings had all the appearances of a bank. Its Web site carried what looked to her like a Federal Deposit Insurance Corp. logo, and she assumed that meant deposits were insured by the government agency.[...]

Federal Savings is not registered in the state of Washington or with any federal agency to sell certificates of deposits or any securities, said Martin Cordell, chief of enforcement with the state Department of Financial Institutions' securities division.

Two weeks ago, after investigating complaints about the company, DFI issued a cease-and-desist order against Federal Savings, First Bancshares Inc., JMA Northwest Investments and Jeremy M. Stamper, a Seattle businessman.

Ironically, their web site claims that they are "the unbank" -- and turns out they were not a real bank afterall. So, you don't have to be a real bank to collect money! How many other "unbanks" are out there?

Copyright 2007, DannyHSDad, All Rights Reserved.

Meaning of NCUA and FDIC

"Learning the Finer Meaning of 'Insured': Banks and other institutions offer various guarantees on their investment products."

A good intro on who insures what for how much.

Copyright 2007, DannyHSDad, All Rights Reserved.

Bank 1: Metropolitan Savings Bank, Pittsburgh, PA

"Customers saw 'no rumblings of trouble' at bank" [Feb 11, 2007]. FDIC takes over a bank in PA.

Copyright 2007, DannyHSDad, All Rights Reserved.