Friday's three bank closings cost the FDIC $986 million

[FarCenter]

Century Bank, Federal Savings Bank, Sarasota, Florida, -- The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $344 million.

Orion Bank, Naples, Florida, -- The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $615 million.

Pacific Coast National Bank, San Clemente, California, -- The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $27.4 million.

[napi21]

1. Well damn! At least Ga. missed it THIS WEEK! I swear, every week

at least one Ga. bank goes bust!

[RubyDuby in GA]

7. Ha! I clicked to see with GA bank it would be this week

I'm shocked...shocked I tell you that the Republicans of this state can't manage money.





I, of course, am kidding. :)

[napi21]

8. I've not checked for sure but are most of the bank failures in red

states? I know Ga. was at the top of the list for quite a while!

O just checked.

:look at this.

http://www.hubdub.com/m58250/What_US_state_will_have_the_most_bank_failures_in_November_2009

So far this year over 116 US banks across the country have failed and the FDIC has placed them into recievership (closed them down). At the start of the year the FDIC reported that nationally there were over 300 troubled banks. Now, the latest update places the number of banks that don't pass the grade is 416 (http://www.bloomberg.com/apps/news?pid=20601087&sid=aSdMMGzkt1do). However, not all states are created equal when it comes to banking problems. Three states, Illinois, California and Georgia, represent over 45% of all bank failures in the US so far this year.

[bermudat]

2. No problem.

the Feds will just print more money.

[debbierlus]

3. Kick - this should not be lost in the friday news dump

[Lars39]

4. Holy crap!

[FarCenter]

5. Regulators crack down on Century Bank in Sarasota

Tampa Bay Business Journal - by Margie Manning Senior staff writer

The Office of Thrift Supervision has charged Century Bank, a federal savings bank in Sarasota, with engaging in unsafe and unsound banking practices.

OTS also charged the thrift with violations of the Truth in Lending Act and flood insurance regulations.

Based on findings from an examination that lasted from May to August, OTS is asking that a cease and desist order be issued against the bank, which is the third largest community bank in the Tampa Bay area based on its $922 million in assts as of Dec. 31.

In a notice dated March 3 and released by OTS early Wednesday, regulators said Century Bank made too many risky loans without having adequate policies in place to manage the risks presented by those loans and without setting aside enough reserves to cover loan losses. The bank relied too heavily on shorter-term certificates of deposits and brokered deposits and let its capital levels fall too low, OTS said.

OTS also charged that Century Bank violated the Truth in Lending act when it cut off advances for most of its home equity line of credit customers without telling them why it was doing so and that the bank failed to get flood insurance for properties in flood areas that were collateral for loans.

<snip>http://tampabay.bizjournals.com/tampabay/stories/2009/03/09/daily23.html

[FarCenter]

6. Regulators order Orion Bank to fire CEO Jerry Williams

Tampa Bay Business Journal - by Margie Manning Senior staff writer

The Board of Governors of the Federal Reserve System has ordered Orion Bank to immediately dismiss Jerry Williams, the bank’s chairman, president and chief executive officer.

The order is contained in a prompt corrective action directive dated Nov. 9 and released by the Federal Reserve late Friday afternoon.

The directive said the bank is “critically undercapitalized” and also said Williams made false statements about the source of funds for a stock purchase that was intended to raise more capital for the bank.

Orion Bank has 14 days to appeal the order. A call to the bank for comment was pending return.

Williams was named community banker of the year by the trade journal American Banker in 2006, 19 years after he took the helm at Orion.

The Naples-based bank, which has offices in Sarasota and Manatee counties, grew rapidly under his leadership, but stumbled as the real estate market weakened and the economy softened. In September, the bank signed a cease and desist order with the Federal Reserve that in part gave the bank 30 days to hire an independent consultant to review the effectiveness of the holding company’s and the bank’s corporate governance, including whether the bank’s senior executive officers are qualified to perform their duties.

In the prompt corrective action directive, the Fed said the bank reached its legal lending limit under Florida law with respect to aggregate loans outstanding to a borrower and his related interests in June. That month, Williams allowed the bank to make another $60 million in loans to “straw borrowers” who were related to the borrower already at the limit. The loans were made without adequate analysis of the borrowers’ creditworthiness, capacity for repayment and valuation of collateral, and the loans were structured to make it appear that the bank was reducing its level of classified assets, the directive said.

<SNIP>http://tampabay.bizjournals.com/tampabay/stories/2009/11/09/daily88.html