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Posted on 02/06/2009 7:51:03 PM PST by rabscuttle385
WASHINGTON (AP) — Regulators on Friday closed FirstBank Financial Services in Georgia and two California banks, Alliance Bank and County Bank, marking nine failures this year of federally insured institutions.
The Federal Deposit Insurance Corp. was appointed receiver of the three banks. FirstBank Financial, based in McDonough, Ga., had $337 million in assets and $279 million in deposits as of Dec. 31. Alliance Bank, based in Culver City, Calif., had about $1.14 billion in assets and $951 million in deposits as of year's end. Merced, Calif.-based County Bank had around $1.7 billion in assets and $1.3 billion in deposits as of Feb. 2.
(Excerpt) Read more at google.com ...
Failed Bank Information for County Bank, Merced, CA
Failed Bank Information for FirstBank Financial Services, McDonough, GA
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Thanks for the good work rabscuttle385.
This is all adding up to no good.
We aren't just dealing with tiny tiny community banks any more.
Are we talking about the last fiscal year (who knows what that is any more) or the last 5 weeks? (FIVE weeks = not even two months of 2009)
OGloom. ODoom. OFailure.
Jimmy Carter. v2.0
Um...the last five weeks.
O Crap
It looks like they are able to move the loans on the California banks, but not the Georgia ones.
To be a bit more precise, that’s 9 in the last 22 days.
Just curious...
What is the FDIC’s criteria for shutting down a bank?
Is the ratio of non-performing loans to total assets?
Is it when the deposits and assets fall below a pre-determined threshold?
Ask PAR35.
First, you have to start with the technicality that although it has the power to close banks, as far as I know, it has never exercised that power. It can, however, influence a state regulator. I remember a bank out of Louisiana that the state was dragging its feet on. The FDIC started the process to revoke the deposit insurance, and since state law required all banks to be insured, the state finally acted.
The bank is closed by its primary regulator - OTS, OCC, State examiners (I’m not sure how it works in the territories) - so there are at least 52, perhaps more, groups making bank closing decisions.
With that out of the way, there are generally two reasons banks might be closed. Most of the time it is a capitalization issue. The debts are bigger than the assets. (Or, at least, bigger than the assets plus the required cushion). The other reason would be for liquidity reasons. The bank runs out of cash for day to day operations. Bank runs can cause liquidity problems. But most closings are capital, not liquidity based.
As to why a particular institution gets closed on a particular week, I have no idea.
And, looking back at your question, I’m not sure I answered them. The answer to both questions is ‘no’. For capitalization issues, you’d look at the Tier 1 and risk based capital ratios. You might start here: http://en.wikipedia.org/wiki/Capital_requirement
Who is in charge here?
If nobody else is in charge then I must be. George Soros will be the first contract within a certain timeframe. Open account.
Watch for North Valley Bank of Redding to be next. They have about 20 branches and had bet a lot of money on land/subdivisions in Nor Cal and many are non performing...
folks ...
check the Texas Ratio for these outfits.
TEXAS RATIO = 280 FIRSTBANK FINANCIAL
TEXAS RATIO = 134 ALLIANCE BANK
TEXAS RATIO = 85 COUNTY BANK
The scorecard needs to be more easily accessed.
High scores are like blood pressure, not “good” indicators.
Texas Ratio of 22 for North Valley
The lower the number the better the score?
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