Posted on 02/19/2010 7:59:36 PM PST by Kartographer
La Jolla Bank in the San Diego area was among four banks shuttered by authorities Friday, bringing the total to 20 financial institutions closed since the beginning of the year.
(Excerpt) Read more at marketwatch.com ...
How any in all were closed last year?
Folks, as a general precaution, make sure you know who you are banking with: solvency, etc.
If things keep going the way they are, FDIC-Insured may not mean much!
I’m a General Contractor way south in Florida. A bank in Miami, Premier American Bank, that was the construction lender on a house I was/am building was taken down by the FDIC 3-4 weeks ago.
I’m owed $100,000 on the job and I can’t get a straight answer out of anyone regarding who’s supposed to pay. Business is frigging tough enough as it is, but having all your working capital tied up and not knowing when you’re getting it back really sucks!
Jim Klinge, aka Jim the Realtor, http://www.bubbleinfo.com/
works his trade in the area where La Joya bank made most of those terrible RE and CRE loans. He has pointed it out for months that La Joya bank was in a death spiral, ... Jim posts video tours of some of the properties on the market, it’s interesting to see how frothy those loans were for the great majority if not near 100% of the properties in the last 5 years.
A very good blog entry on La Jolla Bank from August 2009:
http://www.bubbleinfo.com/2009/09/06/more-br-action/
Comment from thread:
Don’t believe the Trustee’s sale. I actually bid $4.5mm for the package and was semi-comfortable at that price. LJ bank said their accepted offer was in the high $5mm (later disclosed from another source at $5.8mm).
Loan was $8.2mm. They paid FULL RETAIL VALUE for the homes. will be lucky to break even after costs/fees/renovation/etc. Not to mention dumping 11 homes on the market at once. Don’t believe what is being reported.
JH again:
So, for loan after loan, at best La Jolla Bank was losing 30% on each loan package through their investor residential real estate business. Not including foreclosure and carry costs.
The stories keep surfacing (up-replies).
We all have to be very aware of the situation, think Argentina circa 2000: people (lots of them) lost all they had.
It would be so nice if your excerpt included the names of all 4 banks.
La Jolla Bank in the San Diego area
George Washington Savings Bank of Orland Park, Ill.
La Coste National Bank of La Coste, Texas
Marco Community Bank of Marco Island, Fla.
And how might one truly ascertain the solvency of their bank?
Romney lives there now, I wonder if there is any connection?
Never heard of it before. Looks like it's a bit west of San Antonio.
It’s not the number banks that’s signifigant, it’s the number of branches that go down.
Banks during the first depression were for the most part single branch operations.
The gubmint and bankster media trys to minimize the extent of this depression by closing 4 or 5 “banks” a week. Branch numbers are rarely given.
Here are a few sites that rate banks and credit unions.
http://www.bankrate.com/rates/safe-sound/bank-ratings.aspx?t=cb&i=OneWest&r=&a=&c=&s=&z=
http://www.ncua.gov/DataServices/FindCU.aspx
http://banktracker.investigativereportingworkshop.org/
La Coste National Bank of La Coste, Texas, will be taken over by Community National Bank of Hondo, Texas. The sole branch of La Coste National had $53.9 million in assets.
No it won’t. Stop being a fear-monger.
Go here, enter the name of your bank.
https://cdr.ffiec.gov/public/ManageFacsimiles.aspx
Go to RC-R. If the “total risk-based capital” at the very bottom of the page is under 10%, your bank is on thin ice. If it is under 8%, it is in big trouble. Once it gets under 5-6% it is in serious danger of closure by the FDIC.
You are insured up to $250,000 on savings, money market or CD accounts, and you have unlimited insurance on a checking account as long as it bears an interest rate of under 0.50%. As long as you are insured, no worries. If your bank is under the capital thresholds above and you are over the insurance limits, you should spread your money around.
I think most of the big banks (and a number of small ones) opted out of that program at the end of the year when the rates charged by the FDIC for that program jumped.
Good point. Anyone can see if their bank is participating at the FDIC website.
The unlimited insurance expires on June 30 for everyone who is still participating.
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