Special Report: What New Capital Ratios Would Mean for Banks
July 26, 2010
If regulatory capital ratios were to increase in line with recent enforcement orders, banks would have to raise more than $476 billion, an effort that would undoubtedly lead to the merger of many banks and the failures of others, according to an exclusive analysis of Call Report data conducted for...
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Indexed by: Capital Adequacy | Exams/Enforcement | Management
A Success Story: First Michigan Bank Raises Capital, Grows By More than $1 BIllion
July 26, 2010
It is possible to raise capital in today’s environment. Just ask David Provost, chairman, president and CEO of First Michigan Bank in Troy, Mich. He not only raised $200 million, but he helped turn his $100 million bank into a $1.7 billion institution with a single acquisition on April...
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Indexed by: Capital Adequacy | FDIC | Management
New Wave of Lawsuits Likely over Commercial Real Estate Debt
July 26, 2010
Banks may soon be subject to a massive wave of new lawsuits related to commercial real estate collateralized debt obligations, warns attorney Jay Tambe, a partner at Jones Day in New York and co-leader of its Financial Institutions Litigation & Regulation Practice.
The reason: The delinquency...
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Indexed by: Legal
Is 12 the new 10? Examiners Ask for More and More Capital, Orders Show
July 19, 2010
Examiners across the country are ordering banks to increase their capital ratios well beyond what is considered well-capitalized, in some cases demanding as much as 14% total risk-based capital, a Bank Safety & Soundness Advisor analysis of enforcement orders shows.
The orders stretch from...
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Indexed by: Capital Adequacy | Exams/Enforcement
Analysis of State Street Bank Puts Congress' Volcker Rule to the Financial Crisis Test
July 19, 2010
A former bank executive contends that the controversial Volcker Rule would have greatly mitigated losses by many financial institutions during the economic crisis. The finding, which comes as the financial reform bill is about to head for President Obama’s signature, arises from an extensive...
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Indexed by: Earnings | Legislation
FDIC Gains Regulatory Back-Up Powers
July 19, 2010
The FDIC will use off-site monitoring of Call Reports to decide whether it needs to sit in on exams of banks it doesn’t normally supervise, according to a new agreement among the regulators approved unanimously last week.
The agreement gives the FDIC the power to conduct special exams of...
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Indexed by: Enforcement/Exams | FDIC | Regulation
Financial Reform, Slow Recovery Lead to New Bank Worries
July 12, 2010
Financial institution executives are equally concerned about market, accounting and governance risk, thanks largely to uncertainty about the economy and the impact of financial reform, a Bank Safety & Soundness Advisor survey shows. The new worries signal a shift from last year when bank...
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Indexed by: Accounting | Legislation | Market Risk
Social Media Confront Banks with Newfangled Safety & Soundness Risks
July 12, 2010
Hey Facebook Friends, we just received a C&D!
Could someone in your bank post such a message on Facebook? How about a tweet to the same effect, using Twitter? The phrase above has 38 characters, and a bank employee could add another 102 and stay within the Twitter per message limit. Something...
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Indexed by: Legal | Management
Some Well-Capitalized Banks Hit with C&Ds Over IT Issues
July 12, 2010
Bank examiners are focused on yet another issue of enterprise risk: Inadequate IT systems. Several strongly capitalized banks have been hit with Cease & Desist orders recently.
Consider First Bank of Williamstown (N.J.). The $230 million institution had 10.13% leverage capital and 19.88% Tier 1...
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Indexed by: Exams/Enforcement | Management
