Just a few years ago the world took notice and marked every announcement of a failed bank. Today little attention is paid as banks continue to fail all across America, this is another sad sign of the times, it shows that even as some tout a positive outlook, the majority of Americans see our ailing economy as the new normal. On Friday night April 27th the Federal Deposit Insurance
Corp reported five more bank failures bringing the
number of U.S. failures to 22 this year, . This time the cost to the FDIC Deposit Insurance Fund will be $20.1
million, the agency said.
The two largest were Plantation Federal Bank of Pawleys Island, S.C., and Inter Savings Bank of Maple Grove, Minn., each with nearly $500 million in deposits. Savings. HarVest Bank of Maryland in Gaithersburg will have its $145.5 million in deposits assumed by Sonabank of McLean, Va. The FDIC created the Deposit Insurance National Bank of Eastern Shore, which will remain open until May 25, so customers of failed Bank of the Eastern Shore of Cambridge, Md., can withdraw their insured deposits. Eastern Shore had about $154.5 million in deposits as of Dec. 31. The FDIC said Pacific Premier Bank of Costa Mesa, Calif., will take over operations of Palm Desert, Calif., National Bank. The Palm Desert bank as of Dec. 31 had $125.8 million in assets and $122.8 million in deposits.
Commercial real estate loans have plagued banks for years and have accounted for the bulk of nonperforming loans at many failed banks. Construction and land loans have also been a source of problems for banks as the economy continues to struggle, banks have often been forced to adopt an "extend and pretend" policy to prevent having to foreclose, but this is not a path to profits. This has all occurred at a time when home equity loans and other types of consumer loans have not grown enough to offset the losses. If you place the blame on the fact that new jobs are not being created at a fast enough pace. Expect these trends to continue.
(Please take a look at some of my recent post from April.) The subject of continuing Bank Failures is not mind blowing or staggering, but I felt it should be mentioned.
The two largest were Plantation Federal Bank of Pawleys Island, S.C., and Inter Savings Bank of Maple Grove, Minn., each with nearly $500 million in deposits. Savings. HarVest Bank of Maryland in Gaithersburg will have its $145.5 million in deposits assumed by Sonabank of McLean, Va. The FDIC created the Deposit Insurance National Bank of Eastern Shore, which will remain open until May 25, so customers of failed Bank of the Eastern Shore of Cambridge, Md., can withdraw their insured deposits. Eastern Shore had about $154.5 million in deposits as of Dec. 31. The FDIC said Pacific Premier Bank of Costa Mesa, Calif., will take over operations of Palm Desert, Calif., National Bank. The Palm Desert bank as of Dec. 31 had $125.8 million in assets and $122.8 million in deposits.
Commercial real estate loans have plagued banks for years and have accounted for the bulk of nonperforming loans at many failed banks. Construction and land loans have also been a source of problems for banks as the economy continues to struggle, banks have often been forced to adopt an "extend and pretend" policy to prevent having to foreclose, but this is not a path to profits. This has all occurred at a time when home equity loans and other types of consumer loans have not grown enough to offset the losses. If you place the blame on the fact that new jobs are not being created at a fast enough pace. Expect these trends to continue.
(Please take a look at some of my recent post from April.) The subject of continuing Bank Failures is not mind blowing or staggering, but I felt it should be mentioned.
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