Banks That Went Bust: Interactive FDIC Bank Failure Map
See The Interactive Graphic With State-By-State Data HERE >>
Some are in such bad shape that potential buyers won't touch them at any price, even if the government agrees to eat losses on the failed bank's bad loans. In addition to their depleted capital, many seized banks operate in areas with sluggish growth prospects, are puny and are loaded with expensive deposits gathered through brokers that are likely to leave when the acquiring bank reins in interest rates, some bankers complain.
Philip Sherringham, chief executive of People's United, said it is getting harder to find the dream deal that bank officials hoped to hatch from a wrecked bank. The supply of ideal targets—sensible deposit-gatherers that fatally "overextended" their loan portfolio—is slim and the competition fierce, he said.
But of the 124 banks to fail so far this year, many of those put up for sale by regulators as part of the seizure process "are of very poor quality," said Norm Skalicky, chief executive of Stearns Financial Services Inc. "It's not as if you can walk in and you are in business."
Sluggish interest in doomed banks could push the FDIC's losses higher at a time when the agency's fund to shield depositors is in negative territory for just the second time in its history.
Kevin L. Petrasic, a lawyer at Paul, Hastings, Janofsky & Walker LLP, said FDIC officials might be forced to bundle some small banks together in order to lure potential buyers.
An FDIC spokesman said the agency isn't having trouble lining up buyers. About 95% of banks seized by regulators have been sold. While some attract few bids, the FDIC has "had tremendous success in finding buyers," the spokesman said. Two of the nine banks that failed this month were sold without loss-sharing agreements.
Continue reading at the WSJ >>
Dec 2, 2009 at 5:31 PM
Reader Comments (4)
http://cohort11.americanobserver.net/latoyaegwuekwe/multimediafinal.html
DO any American think that these Criminal Rulers barking have any truth in their barks?
Criminals without Soul=Demons scamming us with DOG and PONY Show now
You are going to be forced to Revolt as you all have refused to Resist and Revolt and it will be brutal civil unrest.
Mercy My Lord
AMEN
US$ DEMISE IN 2010 IN GIVEN NOW
"This morning there's a nasty rumor on the wire - that Japan may be intending to sell US Treasuries."
Original story here at 10:40 EST, if you have access to MarketNews.com: http://www.marketnews.com/mni-bin/mni.cgi?page=0
Come on, Japan--please--not before Christmas!
just finished watching 5 hours of today's testimony plus geithner on squawk box this morning....and geithner on capitol hill yesterday...wednesday