Sunday, August 3, 2008

Bank Collapse Watch: More FAIL Contestants

FDIC warns four US banks over liquidity
The Federal Deposit Insurance Corporation revealed on Friday that it had issued warnings to four small US banks that lacked sufficient reserves to cover potential loan losses.

The cease-and-desist orders issued in June said the four banks needed to raise more capital, expand their loss allowances and better oversee and diversify their loan portfolios. A fifth bank was cited for violating consumer protection laws.

Losses on mortages and other loans have helped bring down eight US banks this year, including one small Florida institution on Friday. Last month, Indymac, a California lender with $32bn in assets, became one of the largest banks to go under in US history. It filed for Chapter 7 bankruptcy protection on Friday.

The banks receiving cease-and-desist orders in June were MetroPacific Bank in Irvine, California; Bank Haven in Haven, Kansas; Clarkston State Bank in Clarkston, Michigan; and Hastings State Bank in Hastings, Nebraska.

Emphasis added by me.

And hey, we can confirm two of these contestants! They're on one of the two Bank Collapse Watch lists I referenced earlier.


Click = big


Click= big

And how do you like that? They're right next to each other on that list!

Click here for a summary of posts in the WordPress blog's Bank Collapse Watch category.

Where is your money today?

Educate yourself!

No comments: