California bank failure will cost FDIC $1.4 billion (5 failures on Friday - 2009 total now 120)

[UpInArms]

Source: CBS Marketwatch

SAN FRANCISCO (MarketWatch) -- Five more banks, including a California-based institution that reportedly received federal bailout funds in 2008, were closed Friday by regulators, bringing the 2009 total to 120 failed banks.

The latest banks to be taken over were United Security Bank of Sparta, Ga.; Home Federal Savings Bank of Detroit; United Commercial Bank of San Francisco; Gateway Bank of St. Louis and Prosperan Bank of Oakdale, Minn., according to the Federal Deposit Insurance Corp.

United Commercial, which had branches across the U.S. and also in Hong Kong and Shanghai, focused on the Chinese-American market in the U.S. and had obtained a very difficult to get banking license in China, the Los Angeles Times reported.

The Times said United Commercial received $299 million in federal bailout funds last year.

The FDIC estimated United Commercial's failure would cost its insurance deposit fund $1.4 billion.

It said United Commercial, whose U.S. and Chinese operations will be taken over by East West Bank of Pasadena, Calif., had assets of $11.2 billion and deposits of $7.5 billion as of Oct. 23.

Read more: http://www.marketwatch.com/story/another-bank-fails-in-...

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Failed Bank List

Bank Name			City		State	CERT #	Closing Date	Updated Date
United Commercial Bank		San Francisco	CA	32469	November 6, 2009 November 6, 2009
Gateway Bank of St. Louis	St. Louis	MO	19450	November 6, 2009 November 6, 2009
Prosperan Bank			Oakdale		MN	35074	November 6, 2009 November 6, 2009
Home Federal Savings Bank	Detroit		MI	30329	November 6, 2009 November 6, 2009
United Security Bank		Sparta		GA	22286	November 6, 2009 November 6, 2009

[lonestarnot]

1. K & R

[xchrom]

2. kick

[bertman]

3. Yesterday I heard some disturbing figures. The top five financial institutions: JP Morgan,

Bank of America, Wells Fargo, Citigroup, and the last one eludes me, now have 50 % of all deposits in the U.S. and over 70% of all credit card debt. These numbers have RISEN since the bailout.

The TOO BIG TO FAIL are getting BIGGER while the smaller banks around them are failing.

Scary.

Rec.

[nightrain]

4. yeah, pretty much a monopoly! Too big to maintain or to be associated with.

[notesdev]

6. It used to be known as a "trust"

And we sure could use some trustbusters about now!

[4dsc]

7. Maybe this is what you heard about

In the United States, three banks hold almost 34% of the nation's deposits, four banks issue 50% of the country's mortgages, and the five largest credit card lenders control 74% of the market.

http://www.michaelmoore.com/words/mike-in-the-news/new-...

[truedelphi]

14. When you realize that Geithner has been quite influenced by Kissinger,

All of this starts to make sense.

[bertman]

16. That sounds right, 4dsc. I heard it when Bernie Sanders and Thom Hartmann were

discussing regulation of the financial industry--rather, the LACK thereof.

[Gormy Cuss]

8. PNC is the fifth, and yes it's scary.

link to a Money/CNN report on growth of assets.
http://money.cnn.com/2009/10/20/news/banks.big.fortune/...

[truedelphi]

12. Bertman have you seen the new requirements regarding FDIC insurance?

Basically, rates are up. And the small banks will be required to pay three or four or even five years in advance.

Where will they get that kind of money? And if they pay it forward, thenn they will have far less collateral with which to make loans.

Our nation's middle class is appraoching a depression, or semi-holocaust. We have a "recovery" which is jobless and homeless and local bank-less. (Remember that the first thing to go when any group is oppressed is jobs. Then when that populace is herded into government housing, or a ghetto, or a homeless camp, rumors of a huge disease contamination are stoked.)

BTW once a bank fails, then whoever buys that bank gets their payments to the FDIC credited to them!!

[bertman]

17. No, I haven't seen them, truedelphi. If what you say is true, it's consistent with what has

been happening since Glass-Steagal was repealed. The big boys are seizing their opportunity to turn us taxpayers into their personal bankers--no pun intended. They have the brains and the clout to do it and are in the process right now.

I'm not sure that there's anything We the People can do to stop it. Congress and President Obama seem reluctant to bite the hand that feeds them their campaign finance money.

I thought Michael Moore's exposure of how the "brain trust" from America's universities had migrated to Wall Street was very revealing. When you have people who are willing to buy into the concept that THEY are the smartest and therefore deserve more than the rest--at the expense of the rest--then we're basically screwed IF WE DON'T HAVE POLITICIANS WHO ARE WILLING TO STAND UP TO THEM.

[truedelphi]

19. In case you wanna look it over, here is the text

Of the new FDIC situation:

http://www.fdic.gov/news/board/Sept29no1.pdf

[notesdev]

5. Translation

it will cost YOU and ME $1.4 billion because the FDIC is bankrupt.

It would cost nothing at all if Shiela Bair and the FDIC were doing its job according to the law, shutting down these banks before the taxpayer gets stuck with the losses. This is just another charge on the tab these jokers are running up on us, expecting us to pay it.

[JDPriestly]

9. We will pay in terms of inflation. Politicians have learned that they

cannot raise taxes so they just borrow, borrow, borrow and let the currency lose value. That is how California got into the situation that it is in.

[SandWalker1984]

10. Blame it on Gramm, Leach, Bliley and the bill Congress passed in 1999

Most of the banking meltdown and mega consolidations by a few can be blamed on the Banking Modernization Act of 1999.

Republicans wrote the bill, but it passed in the Senate by 90 to 8 and in the House by 362 to 57 margin. Then Bill Clinton signed it into law.

Bush carried on the tradition by filling his White House positions with Goldman Sachs and Wall Street people.

Obama followed suit.

Congress claims they had to pass emergency TARP funding to prevent a major meltdown of the economy but what are they doing to re-regulate the banking industry and put the walls back up between Wall Street and banking? If you look at the legislation in the works, it is being as watered down as quickly as possibly by lobbyists. The same thing that has been happening with the health care reform.

The corporations have so much power over our government in Washington now that NO legislation appears to be able to be passed that does not benefit the corporations more than it benefits us, the people.

Want change? Then we need to push and get passed meaningful campaign finance reform. Until then, corporations rule.

[phasma ex machina]

11. Unofficial Problem Bank List Grows to 505

link

[lonestarnot]

13. And their pot is down to how much now? Can't recall the number from 2 weeks ago.

[Hekate]

15. I can't thank you enough. We may be changing banks on Monday. nt

[caseymoz]

18. We're probably going to have a flurry of these to close this year.

Reason? People aren't keeping anything in their accounts, or have closed them. These smaller banks are taking the brunt of what the huge banks did.

This is not a recovery.