bankers, banks, Ben Bernanke, Cricket House Studios, cricketdiane, failed banks, FDIC, Federal Reserve, Feral Reserve - now that might make more sense actually, hedge fund managers, hedge funds, IMF, US and Global economic crisis statistics, Wall Street, Wall Street bailouts, World Bank
WASHINGTON — Regulators on Friday shut down Colonial BancGroup Inc., a lender in real estate development, in the biggest U.S. bank failure this year, and also closed four banks in Arizona, Nevada and Pennsylvania.
The closures boosted to 77 the number of federally insured banks that have failed in 2009.
The Federal Deposit Insurance Corp. was appointed receiver of the banks: Montgomery, Ala.-based Colonial, with about $25 billion in assets; Community Bank of Arizona, based in Phoenix; Union Bank, based in Gilbert, Ariz.; Community Bank of Nevada, based in Las Vegas; and Dwelling House Savings and Loan Association, located in Pittsburgh.
The FDIC approved the sale of Colonial’s $20 billion in deposits and about $22 billion of its assets to BB&T Corp., which is based in Winston-Salem, N.C. The failed bank’s 346 branches in Alabama, Florida, Georgia, Nevada and Texas will reopen at the normal times starting on Saturday as offices of BB&T, the FDIC said.
The failure of Colonial is expected to cost the deposit insurance fund an estimated $2.8 billion.
The 77 bank failures nationwide this year compare with 25 last year and three in 2007.
[ . . . ]
The number of banks on the FDIC’s list of problem institutions leaped to 305 in the first quarter — the highest number since 1994 during the savings and loan crisis — from 252 in the fourth quarter. The FDIC expects U.S. bank failures to cost the insurance fund around $70 billion through 2013.
The May closing of struggling Florida thrift BankUnited FSB is expected to cost the insurance fund $4.9 billion, the second-largest hit since the financial crisis began. The costliest was the July 2008 seizure of big California lender IndyMac Bank, on which the insurance fund is estimated to have lost $10.7 billion.
The largest U.S. bank failure ever also came last year: Seattle-based thrift Washington Mutual Inc. fell in September, with about $307 billion in assets. It was acquired by JPMorgan Chase & Co. for $1.9 billion in a deal brokered by the FDIC.
[ . . . ]
Yeah, obviously the economy is all fixed now . . .
– my note
And from the bloomberg bunch –
Fed Signals No Rush to Curtail Stimulus as Slump Ends (Update1)
By Scott Lanman
Aug. 13 (Bloomberg)
Sales at U.S. retailers unexpectedly fell 0.1 percent in July as a boost from the cash-for-clunkers automobile incentive program failed to overcome cuts in other spending, Commerce Department figures showed today.
The Fed reiterated the view from its June statement that the economy is “likely to remain weak for a time.” Efforts to revive the economy by the central bank and U.S. government should “contribute to a gradual resumption of sustainable economic growth,” policy makers said.
[ . . ]
“The Fed’s footprint in the $6.8 trillion market of outstanding Treasuries is smaller than in the market for agency mortgage-backed securities, where the central bank is buying $1.25 trillion from a pool of about $5 trillion. A sudden end to the Fed’s purchases of MBS could be especially “problematic” for that market, Dudley said in the interview.”
The commercial real estate industry, under pressure from falling property values and maturing loans, called last month for an extension of the TALF program. Tumbling property values have made it difficult for owners of commercial real estate to refinance $165 billion in mortgages this year.
The FOMC noted yesterday that consumer spending “remains constrained” by job losses, “sluggish income growth, lower housing wealth and tight credit.”
Policy makers “cite a lot of things to suggest we are not on an upward trajectory yet,” said Robert Eisenbeis, a former research director at the Atlanta Fed who’s now chief monetary economist at Cumberland Advisors in Vineland, New Jersey.
To contact the reporter on this story: Scott Lanman in Washington at firstname.lastname@example.org; Craig Torres in Washington at email@example.com.
Last Updated: August 13, 2009 11:19 EDT
My Note –
How does their analysis indicate the “slump ends”? Where do they read that in the numbers? I want to hope for the best, but I’m not going to pretend everything is hunkey-damn-dorey if it isn’t. How is that going to help any?
– my comment
| Failed Bank List
[And found on this page – ]
Research & Analysis
Access FDIC policy research and analysis of regional and national banking trends.
Bank Data & Statistics
Use searchable databases to find information on specific banks, their branches, and the industry.
My Note – But, the best one is over in the right-hand sidebar –
The Statistics on Banking is a quarterly publication that provides detailed aggregate financial information as well as key structural data (number of institutions and branches) for all FDIC-insured institutions.
In addition to standardized reports, a user has the ability to dynamically generate customized reports for analysis. For example, reports can be created that consist of any combination of single institutions or bank holding companies, standard peer groups of institutions, and custom peer groups of institutions and bank holding companies. For further details, please refer to SDI Home above.
Select one from each of the five categories below:
It allows a search for all FDIC insured institutions by state and shows assets and liabilities from loans and securities to overall financial health of the institution. I would take it in perspective to the current economic climate but it gives some interesting insights to the overall financial situation of each state’s banking system.
– my note
Flaws halt work on Boeing 787 sections
Fri Aug 14, 2009 2:26pm EDT
By Kyle Peterson
CHICAGO (Reuters) – Boeing Co (BA.N) said on Friday an Italian supplier stopped production in June on two sections of its long-delayed 787 Dreamliner after structural flaws were found on fuselages.
[ . . . ]
Flaws were found on 23 airplanes, starting with the seventh in production, Gunter said. She said a solution has been designed and patches will be applied to all the planes built so far.
“They’re continuing to work on the barrels that they have already fabricated,” Gunter said.
“As we implement this change, we are not going to produce any new barrels until there is an engineering change that will keep the subsequent units from needing to be modified,” she said.
The revolutionary carbon-composite 787 airplane has been delayed repeatedly. On June 23, the same day as the Alenia Aeronautica production halt, Boeing announced another delay to the first test flight of the 787.
Considering things like the above story in the continuing saga of the Boeing pipe dream 787 – even real-time current numbers don’t mean anything is actually assured nor an appropriate projection in the economy / financial sector. – my comment
World Bank Development Research Programs
Last updated: 2009-03-04
Permanent URL for this page: http://go.worldbank.org/60DJQTKQC0
NEW YORK (Reuters) – Tremont Group Holdings, which lost more than $3 billion investing clients money with Ponzi mastermind Bernard Madoff, is set to auction most of its remaining hedge fund assets in the coming weeks, the Wall Street Journal reported Friday.
Portfolios recently valued at $420 million, including some hedge fund holdings, will be sold off through an auction managed by investment bank Duff & Phelps, the paper said.
Tremont wants to return as much money as possible to clients in its fund-of-hedge funds business. This unit had a small portion of its client money invested with Madoff, but news of the scandal and Tremont’s exposure last December sparked an exodus by investors.
Madoff feeder Tremont to auction fund assets: report
Fri Aug 14, 2009 4:48pm EDT
Tremont is a unit of customer-owned Massachusetts Mutual Life Insurance Co.
Tremont Group had invested more than half of its assets with Madoff’s firm, primarily through feeder funds that in turn invested solely with the fraudster.
The fund-of-funds unit, Tremont Capital Management, had $200 million out of a total $3 billion in assets before the Madoff fraud was exposed.
[ . . . ]
As of the second quarter, Tremont holdings included investments with Cerberus Capital Management, GoldenTree Asset Management, Perry Partners and Canyon Capital Advisors, among others.
(from Reuters article above)
(Reporting by Joseph A. Giannone; Editing by Bernard Orr)
My Note – maybe they didn’t hear the cable news experts explain how everything is okay now and its back to business as usual based on the end of the slump news from Fed Chairman Ben Bernanke and other analysts . . .
Don’t they have any way to simply continue telling people how secure it is while gambling away their clients money like the rest of the Wall Street brokers, traders, bankers and hedge fund managers do and have done?
– “as it turns out . . . ” (maybe the name of a new soap opera that uses character references from the elite cream of the crop out of Harvard – since they are so good at knowing more of what works than reality can bear – just a thought.)
– cricketdiane, 08-15-09
The IMF’s Board of Governors agrees to inject the equivalent of $250 billion in Special Drawing Rights to member countries to provide liquidity to the global economic system by supplementing their foreign exchange reserves. The allocation will be made on August 28.
The IMF is on the move, the Federal Reserve suggests they will stand pat although they are busy buying up failed securities in the background, the Boeing pipe dream plane stalls from something else, the FDIC continues to arrange for banks failing to buy banks that have failed and generally the news is that it is all okay now – they must be taking some good drugs or have lead in the water or something – ”
Ah, to be paid as an analyst that has been as wrong as they’ve been and still get paid – no, never mind – that doesn’t work for me – that is a degree of insanity I don’t want to bear even though getting paid even after making critical errors as serious as theirs have been might not be too dire . . .
Space review panel says moon, Mars out of reach
Fri Aug 14, 2009 3:27pm EDT
By Irene Klotz
CAPE CANAVERAL, Florida (Reuters) – The U.S. plan to return astronauts to the moon by 2020 will not happen without a big boost in NASA’s budget, leaving only the International Space Station as a viable target for the country’s human space program, according to a presidential review panel.
The Human Space Flight Plans committee, which presented its preliminary findings to the White House on Friday, concluded that a human mission to Mars currently would be too risky.
Developing new spaceships to replace the retiring space shuttle fleet and bigger rockets to reach the moon would require about $3 billion more per year, the panel headed by former Lockheed Martin chief Norm Augustine said.
[ . . .]
The committee said the new U.S. exploration initiative — aimed at landing astronauts on the moon by 2020 — is doomed because its 10-year, $108 billion budget has been shaved by about $30 billion.
“We can’t do this program in this budget,” said panel member Sally Ride, a former astronaut. “This budget is simply not friendly to exploration.”
[ . . . ]
The only human space program affordable under NASA’s existing budget is an enhanced space station, one that has a side benefit of seeding a commercial passenger-launch services market, said the panel, which completed a series of public meetings this week.
NASA currently has no funding in place after 2015 for the space station, a $100 billion project of 16 nations.
Construction of the station is scheduled to be finished next year after seven more flights of the space shuttle, which orbits 225 miles above the planet.
After the shuttles are retired, NASA plans to pay Russia to transport crews to the station. The panel’s recommendations include adding $2.5 billion into NASA’s budget between 2011 and 2014 for commercial launch services to the space station.
So after everybody including China is on their way to manned mission to the moon and other space program missions – here we sit –