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banyon
07-26-2008, 09:25 AM
Regulators Close Two More National Banks

By Alison Vekshin
Bloomberg News
Saturday, July 26, 2008

http://www.washingtonpost.com/wp-dyn/content/article/2008/07/25/AR2008072503815.html

First National Bank of Nevada and First Heritage Bank were closed by U.S. regulators yesterday, the first institutions to fail since regulators seized IndyMac Bancorp two weeks ago following a run by depositors.

First National Bank of Nevada, with $3.4 billion in assets, and California-based First Heritage Bank, which had $254 million in assets, were undercapitalized, the Office of the Comptroller of the Currency said last night in a statement. Mutual of Omaha Bank acquired their deposits, according to the Federal Deposit Insurance Corp., which was named the receiver.

"All depositors, including those with deposits in excess of the FDIC's insurance limits, will automatically become depositors of Mutual of Omaha Bank for the full amount of their deposits," the FDIC said.

The banks, owned by First National Bank Holding Co. of Scottsdale, Ariz., are the sixth and seventh to fail this year as the financial-services industry grapples with failed loans stemming from the worst housing slump since the Depression.

Regulators closed IndyMac Bancorp, a California mortgage lender with more than $19 billion in deposits, on July 11, in the third-largest federal seizure of a financial company.


Mutual of Omaha Bank will assume all deposits and some assets of both banks, and their 28 offices in Arizona, California and Nevada will open Monday as branches of the Omaha bank, the FDIC said.

First Heritage, a national bank chartered in 2005, had three branches and mainly served corporations. First National Bank of Nevada, chartered in 1987, also operated as First National Bank of Arizona with 25 branches, the regulators said.

Lenders on the FDIC's "problem list" grew to 90 in the first quarter from 76 in the fourth quarter of 2007, the FDIC said in May. The FDIC insures deposits at 8,494 institutions with $13.4 trillion in assets. The OCC is an agency of the Treasury Department that regulates national banks.

U.S. bank regulators closed First Integrity Bank, based in Minnesota, and ANB Financial in Arkansas in May; Hume Bank in Missouri in March; and Douglass National Bank in Missouri in January. The four lenders had $2.2 billion in assets and losses estimated at $225 million.

Stewie
07-26-2008, 09:31 AM
Lenders on the FDIC's "problem list" grew to 90 in the first quarter from 76 in the fourth quarter of 2007, the FDIC said in May. The FDIC insures deposits at 8,494 institutions with $13.4 trillion in assets. The OCC is an agency of the Treasury Department that regulates national banks.

This is the scary part. The FDIC insures $13.4 trillion in assets, yet only has $50 billion to cover deposits. Who's kidding whom here?

2bikemike
07-26-2008, 09:36 AM
My daughter works for a bank in new accounts. When Indy Mac failed she was innundated with questions, concerns about her clients deposits. She says it has been pretty damn hectic. I guess things are going to get worse before they get better. Her bank is in outstanding shape and has been reported as such. Which bodes very well for her because she has been signing up new clients like crazy which she recieves a commission for.

'Hamas' Jenkins
07-26-2008, 09:55 AM
The market, FTW.

ClevelandBronco
07-26-2008, 10:59 AM
Louis Rukeyser relayed an anecdote on NPR this morning. It went something like this:

"I'm reminded of a gentleman who said — during the S&L crisis of the late 1980s: 'I don't see why we should have to bail out these banks. Let the government do it.'"

Surprisingly, Mr. Rukeyser was trying to argue in support of bailing out the banks. I think his story actually supported the side of the argument that it's better to let them fail.

Ari Chi3fs
07-26-2008, 11:12 PM
This is going to get ugly folks. Soon there will be like 3 banks... all owned by Chase. heh.

Discuss Thrower
07-27-2008, 03:18 AM
This is going to get ugly folks. Soon there will be like 3 banks... all owned by the Chinese. heh.

Edited on the basis of reality.

Smed1065
07-27-2008, 03:34 AM
GO Republicans.

***SPRAYER
07-27-2008, 09:00 AM
GO Republicans.


Do you really think this mortgage disaster is the fault of just Republicans? I think there is enough blame to go around as to why banks started lending money to people who were poor credit risks.

banyon
07-27-2008, 09:11 AM
Do you really think this mortgage disaster is the fault of just Republicans? I think there is enough blame to go around as to why banks started lending money to people who were poor credit risks.

"Now, we've got a problem here in America that we have to address. Too many American families, too many minorities do not own a home. There is a home ownership gap in America. The difference between Anglo America and African American and Hispanic home ownership is too big. (Applause.) And we've got to focus the attention on this nation to address this.

And it starts with setting a goal. And so by the year 2010, we must increase minority home owners by at least 5.5 million. In order to close the homeownership gap, we've got to set a big goal for America, and focus our attention and resources on that goal. (Applause.)

And I picked a good man to help realize that goal, in Mel Martinez. I don't know if you know Mel's story, but -- (applause) -- it's an interesting story. Mel was born in Cuba. (Applause.) Yes. Mel brought his cousins with him. (Laughter.) All two of them, anyway. (Laughter and applause.)...

...And what we've got to do is to figure out how to make sure these stories are repeated over and over and over again in America. Three-quarters of white America owns their homes. Less than 50 percent of African Americans are part of the homeownership in America. And less than 50 percent of the Hispanics who live here in this country own their home. And that has got to change for the good of the country. It just does. (Applause.)

And so here are some of the ways to address the issue. First, the single greatest barrier to first time homeownership is a high downpayment. It is really hard for many, many, low income families to make the high downpayment. And so that's why I propose and urge Congress to fully fund the American Dream Downpayment Fund. This will use money, taxpayers' money to help a qualified, low income buyer make a downpayment. And that's important.

One of the barriers to homeownership is the inability to make a downpayment. And if one of the goals is to increase homeownership, it makes sense to help people pay that downpayment. We believe that the amount of money in our budget, fully approved by Congress, will help 40,000 families every year realize the dream of owning a home. (Applause.) Part of the success of Park Place is that the city of Atlanta already does this. And we want to make the plan more robust. We want to make it more full all across America...

...That's why I've challenged the industry leaders all across the country to get after it for this goal, to stay focused, to make sure that we achieve a more secure America, by achieving the goal of 5.5 million new minority home owners. I call it America's home ownership challenge.
And let me talk about some of the progress which we have made to date, as an example for others to follow. First of all, government sponsored corporations that help create our mortgage system -- I introduced two of the leaders here today -- they call those people Fannie May and Freddie Mac, as well as the federal home loan banks, will increase their commitment to minority markets by more than $440 billion. (Applause.) I want to thank Leland and Franklin for that commitment. It's a commitment that conforms to their charters, as well, and also conforms to their hearts.

This means they will purchase more loans made by banks after Americans, Hispanics and other minorities, which will encourage homeownership. Freddie Mac will launch 25 initiatives to eliminate homeownership barriers. Under one of these, consumers with poor credit will be able to get a mortgage with an interest rate that automatically goes down after a period of consistent payments." (Applause.)


http://www.whitehouse.gov/news/releases/2002/06/20020617-2.html


America's Home Ownership challenge (http://www.whitehouse.gov/news/releases/2004/08/20040809-9.html)

***SPRAYER
07-27-2008, 09:38 AM
"Now, we've got a problem here in America that we have to address. Too many American families, too many minorities do not own a home. There is a home ownership gap in America. The difference between Anglo America and African American and Hispanic home ownership is too big. (Applause.) And we've got to focus the attention on this nation to address this.

And it starts with setting a goal. And so by the year 2010, we must increase minority home owners by at least 5.5 million. In order to close the homeownership gap, we've got to set a big goal for America, and focus our attention and resources on that goal. (Applause.)

And I picked a good man to help realize that goal, in Mel Martinez. I don't know if you know Mel's story, but -- (applause) -- it's an interesting story. Mel was born in Cuba. (Applause.) Yes. Mel brought his cousins with him. (Laughter.) All two of them, anyway. (Laughter and applause.)...

...And what we've got to do is to figure out how to make sure these stories are repeated over and over and over again in America. Three-quarters of white America owns their homes. Less than 50 percent of African Americans are part of the homeownership in America. And less than 50 percent of the Hispanics who live here in this country own their home. And that has got to change for the good of the country. It just does. (Applause.)

And so here are some of the ways to address the issue. First, the single greatest barrier to first time homeownership is a high downpayment. It is really hard for many, many, low income families to make the high downpayment. And so that's why I propose and urge Congress to fully fund the American Dream Downpayment Fund. This will use money, taxpayers' money to help a qualified, low income buyer make a downpayment. And that's important.

One of the barriers to homeownership is the inability to make a downpayment. And if one of the goals is to increase homeownership, it makes sense to help people pay that downpayment. We believe that the amount of money in our budget, fully approved by Congress, will help 40,000 families every year realize the dream of owning a home. (Applause.) Part of the success of Park Place is that the city of Atlanta already does this. And we want to make the plan more robust. We want to make it more full all across America...

...That's why I've challenged the industry leaders all across the country to get after it for this goal, to stay focused, to make sure that we achieve a more secure America, by achieving the goal of 5.5 million new minority home owners. I call it America's home ownership challenge.
And let me talk about some of the progress which we have made to date, as an example for others to follow. First of all, government sponsored corporations that help create our mortgage system -- I introduced two of the leaders here today -- they call those people Fannie May and Freddie Mac, as well as the federal home loan banks, will increase their commitment to minority markets by more than $440 billion. (Applause.) I want to thank Leland and Franklin for that commitment. It's a commitment that conforms to their charters, as well, and also conforms to their hearts.

This means they will purchase more loans made by banks after Americans, Hispanics and other minorities, which will encourage homeownership. Freddie Mac will launch 25 initiatives to eliminate homeownership barriers. Under one of these, consumers with poor credit will be able to get a mortgage with an interest rate that automatically goes down after a period of consistent payments." (Applause.)


http://www.whitehouse.gov/news/releases/2002/06/20020617-2.html


America's Home Ownership challenge (http://www.whitehouse.gov/news/releases/2004/08/20040809-9.html)


And Bush got this idea out of a vaccuum? There was no "bi-partisan" pressure being put on him?

Pres. Bush, like every Republican before him who buys into bi-partisanship and liberal do goodism which ALWAYS PAVES A PATH TO HELL (Mortgage crisis case in point), finds that in the end, when the smoke clears, rather than be lauded by the liberals, he will be tarred and feathered.

But it seemed like a good idea at the time...

http://www.whitehouse.gov/news/releases/2002/06/images/20020617-2_d061702-250h.jpg

As a conservative, there is no sense in appealling to liberal nonsense, you will only find yourself getting all the blame for their stupidity.

SBK
07-27-2008, 09:58 AM
This banking problem IS the governments fault. If banks new that Uncle Sam wasn't going to dump cash into their vaults when they're bad decisions caught up with them their lending standards would be much tighter, as they should be.

BUT.....

Since they know that can make stupid decisions, defraud their investors, turn a blind eye to mortgage fraud in the loans they originate (and then sell to investors only to make money on origination and servicing), write loans to people who shouldn't be able to buy a snickers bar on credit......fund outrageous condo developments that are being bought by "investors" and nobody actually is living in the project, and on and on and on. They know that by "cheating" what they should be doing they can make a ton of money in the short term and then the US Taxpayer will bail them out, why wouldn't they?

This problem was created during the S&L crisis. Bankers learned that they owned the government, so they quickly found a new scam they could exploit, make a ton, then let the government deal with the consequences of their retarded actions.

It's a good gig if you can get it.

SBK
07-27-2008, 10:00 AM
"Now, we've got a problem here in America that we have to address. Too many American families, too many minorities do not own a home. There is a home ownership gap in America. The difference between Anglo America and African American and Hispanic home ownership is too big. (Applause.) And we've got to focus the attention on this nation to address this.

And it starts with setting a goal. And so by the year 2010, we must increase minority home owners by at least 5.5 million. In order to close the homeownership gap, we've got to set a big goal for America, and focus our attention and resources on that goal. (Applause.)

And I picked a good man to help realize that goal, in Mel Martinez. I don't know if you know Mel's story, but -- (applause) -- it's an interesting story. Mel was born in Cuba. (Applause.) Yes. Mel brought his cousins with him. (Laughter.) All two of them, anyway. (Laughter and applause.)...

...And what we've got to do is to figure out how to make sure these stories are repeated over and over and over again in America. Three-quarters of white America owns their homes. Less than 50 percent of African Americans are part of the homeownership in America. And less than 50 percent of the Hispanics who live here in this country own their home. And that has got to change for the good of the country. It just does. (Applause.)

And so here are some of the ways to address the issue. First, the single greatest barrier to first time homeownership is a high downpayment. It is really hard for many, many, low income families to make the high downpayment. And so that's why I propose and urge Congress to fully fund the American Dream Downpayment Fund. This will use money, taxpayers' money to help a qualified, low income buyer make a downpayment. And that's important.

One of the barriers to homeownership is the inability to make a downpayment. And if one of the goals is to increase homeownership, it makes sense to help people pay that downpayment. We believe that the amount of money in our budget, fully approved by Congress, will help 40,000 families every year realize the dream of owning a home. (Applause.) Part of the success of Park Place is that the city of Atlanta already does this. And we want to make the plan more robust. We want to make it more full all across America...

...That's why I've challenged the industry leaders all across the country to get after it for this goal, to stay focused, to make sure that we achieve a more secure America, by achieving the goal of 5.5 million new minority home owners. I call it America's home ownership challenge.
And let me talk about some of the progress which we have made to date, as an example for others to follow. First of all, government sponsored corporations that help create our mortgage system -- I introduced two of the leaders here today -- they call those people Fannie May and Freddie Mac, as well as the federal home loan banks, will increase their commitment to minority markets by more than $440 billion. (Applause.) I want to thank Leland and Franklin for that commitment. It's a commitment that conforms to their charters, as well, and also conforms to their hearts.

This means they will purchase more loans made by banks after Americans, Hispanics and other minorities, which will encourage homeownership. Freddie Mac will launch 25 initiatives to eliminate homeownership barriers. Under one of these, consumers with poor credit will be able to get a mortgage with an interest rate that automatically goes down after a period of consistent payments." (Applause.)


http://www.whitehouse.gov/news/releases/2002/06/20020617-2.html


America's Home Ownership challenge (http://www.whitehouse.gov/news/releases/2004/08/20040809-9.html)

Let's spin this.

Bush wants to help black people own homes while democrats don't think blacks should be part of the American dream. :)

***SPRAYER
07-27-2008, 10:15 AM
Bankers learned that they owned the government, so they quickly found a new scam they could exploit, make a ton, then let the government deal with the consequences of their retarded actions.

It's a good gig if you can get it.

QFT.

It's not what the government intended by pressuring banks to lower lending standards, it's how the banks took advantage of it, knowing damn well that all the risk would be on the American taxpayers. And of course, there were plenty of politicians who saw this for what it was, and also manipulated it for their own self-aggrandizement (CT. Chris Dodd case in point)

As for Pres. Bush, maybe he thought he was doing a good thing. Or maybe he thought that liberals would love him, just like he thought they would love him by sending billions to Africa.

banyon
07-27-2008, 12:57 PM
QFT.

It's not what the government intended by pressuring banks to lower lending standards, it's how the banks took advantage of it, knowing damn well that all the risk would be on the American taxpayers. And of course, there were plenty of politicians who saw this for what it was, and also manipulated it for their own self-aggrandizement (CT. Chris Dodd case in point)

As for Pres. Bush, maybe he thought he was doing a good thing. Or maybe he thought that liberals would love him, just like he thought they would love him by sending billions to Africa.

So now it is Bush's fault, but he shouldn't have listened to liberals so much? ROFL

***SPRAYER
07-27-2008, 01:00 PM
So now it is Bush's fault, but he shouldn't have listened to liberals so much? ROFL

Oh, but it gets even better. The housing bailout bill that made it through the house and will probably make it through the senate that Dubya said he was going to veto, well, he's changed his mind. Why? He still wants the lib's to like him. He's a "compassionate conservative".

Another 25 billion put on American taxpayers tab.

Kaching!

banyon
07-27-2008, 01:05 PM
Oh, but it gets even better. The housing bailout bill that made it through the house and will probably make it through the senate that Dubya said he was going to veto, well, he's changed his mind. Why? He still wants the lib's to like him. He's a "compassionate conservative".

Another 25 billion put on American taxpayers tab.

Kaching!

That won't be Bush's fault either, I suppose. It's great when you can do anything you want without having it ever have to come back to you. ;)

***SPRAYER
07-27-2008, 01:15 PM
That won't be Bush's fault either, I suppose. It's great when you can do anything you want without having it ever have to come back to you. ;)


Oh no, It will be Bush and congress' fault. That has been my point all along. You on the other hand want to make everything just Bush's fault.

banyon
07-27-2008, 01:20 PM
Oh no, It will be Bush and congress' fault. That has been my point all along. You on the other hand want to make everything just Bush's fault.

It was his initiative that he passed through a Republican Congress. You said you couldn't blame Republicans (to Smed).

Sack up and admit you didn't even know he did this.

***SPRAYER
07-27-2008, 01:22 PM
It was his initiative that he passed through a Republican Congress. You said you couldn't blame Republicans (to Smed).

Sack up and admit you didn't even know he did this.

Of course I knew it. Sack up?

ROFL

Look, if you and "smed" want to live in an echo chamber where republicans are evil and democrats are perfect, have at it.