Search Results for 'Troubled Banks'


A Shrinking Bank Holding Company, Thanks to Sell, Merge Orders August 23, 2010 No bank holding company has dealt more with the “merge, sell, liquidate” language in recent consent orders than Michigan-based Capitol Bancorp, a $4.7 billion company with banks in 15 states. The FDIC has ordered 16 of Capitol Bancorp’s community banks to “develop, adopt,... Continued... Indexed by: Capital Adequacy \| Enforcement/Exams \| Troubled Banks
Regulators Ordering Banks to Plan for Liquidation in Consent Orders August 23, 2010 Federal regulators are increasingly inserting language into consent orders –instead of waiting to issue a Prompt Corrective Action– that requires adequately-capitalized banks to come up with immediate plans to merge, sell or liquidate their institutions, a Bank Safety and Soundness... Continued... Indexed by: Capital Adequacy \| Enforcement/Exams \| Regulation \| Troubled Banks
In the Hunt for Liquidity and a Revitalized Market, FDIC Becomes Latest Seller of Mortgage-Backed Securities August 09, 2010 Mortgage-backed securities are among the things that helped create the financial crisis. But that’s not stopping the FDIC from packaging $500 million in single family residential mortgages from failed banks into MBS. The goal: help revitalize the securitization market while increasing its own... Continued... Indexed by: FDIC \| Liquidity \| Troubled Banks
6 Ways Directors and Officers Can Get Ready for Potential FDIC Litigation August 02, 2010 Understand your D&O insurance policies before the bank closes, suggests attorney Thomas Bieging, a partner with Bieging, Shapiro and Burrus in Denver. Find out whether the amount of your coverage is diminished by fees for defense of claims, he adds, and whether you can select your own counsel... Continued... Indexed by: FDIC \| Legal \| Troubled Banks
FDIC Sues IndyMac Officers, Civil Demand Letters Widespread August 02, 2010 Expect more lawsuits like the one the FDIC filed in July against four former IndyMac Bank officers for alleged “negligence and breach of fiduciary duties.” The FDIC confirms it actively is investigating former bank directors and officers at failed banks across the country, sending out... Continued... Indexed by: FDIC \| Legal \| Troubled Banks
FDIC Tightens Benefits of Loss-Sharing Agreements; Are They Worth the Hassle? August 02, 2010 Banks eyeing what has appeared to be a lucrative and relatively easy way to expand their operations through FDIC loss-sharing agreements need to be aware of key changes to the program. The FDIC – recently criticized by the GAO for mishandling the initiative – has reduced the amount of... Continued... Indexed by: Asset Quality \| Exams/Enforcement \| Troubled Banks
What will Your Bank Encounter at its First Post-LSA Exam? August 02, 2010 There will be quite a bit of scrutiny on how you handle those assets – as well as forbearance, according to an essay in FDIC’s Supervisory Insights journal by FDIC Senior Examination Specialist William Baxter, Capital Markets Specialist Ryan Sheller and Chief Accountant Robert Storch.... Continued... Indexed by: Exams/Enforcement \| Troubled Banks
As Regulators Move In, the Board Acts Too Late: The Inside Story of the Franklin Bank Failure August 30, 2009 There was only one item on the agenda for the hastily-called special meeting of Franklin Bank SSB's Audit Committee on Feb. 25, 2008: What to do about the allegations in a letter from the bank's vice president for loss mitigation? The six-page letter alleged numerous accounting problems. It... Continued... Indexed by: Management \| Troubled Banks
Poor Internal Controls, Lax Management, Risky Loans: The Inside Story of What Went Wrong at Franklin Bank August 23, 2009 When Houston's Franklin Bank failed last November, the FDIC announced that it was the 18th bank failure of the year, seemingly another casualty of the subprime mortgage crisis. But the $5.1 billion bank really began unraveling nine months earlier, when top executives received a shocking... Continued... Indexed by: Management \| Troubled Banks
FDIC Policy on Failed Bank Acquisitions Likely to Change, Current Proposal Puts Chill on Private Equity Investors July 12, 2009 The FDIC's proposed policy on failed bank acquisitions, roundly criticized as a "draconian" rewrite of banking law, will become far more palatable to investors in its final version, attorneys say. But its current version is a window into the increasing importance regulators are putting on capital.... Continued... Indexed by: Capital Adequacy \| Troubled Banks