How I learned to love the economic crisis

[c1ue]

New drinking game:

At the end of each workweek (Thursday this week of July 4th, 2009), have one drink to toast each failed bank.

I hope my liver holds out...

[Jay]

Re: How I learned to love the economic crisis

[Jim Nickerson]

Re: How I learned to love the economic crisis

New drinking game:

At the end of each workweek (Thursday this week of July 4th, 2009), have one drink to toast each failed bank.

I hope my liver holds out...

Were past to be prologue, it might be wise to come up with some other game or either toast with something non-alcoholic. Kool-Aid?






Charts from http://www.calculatedriskblog.com/20...s-by-week.html

[Kadriana]

Re: How I learned to love the economic crisis

[quote=Jim Nickerson;107793]Were past to be prologue, it might be wise to come up with some other game or either toast with something non-alcoholic. Kool-Aid?







Any idea how the 1989 bank closings compare to this year's bank closings if you compared the amount of branches the banks had, not just the individual banks? Aren't there a lot less banks now than there were in 1989 since a lot of them were bought out?

[c1ue]

Re: How I learned to love the economic crisis

Latest round of drinking game: 3 banks on 8/7/09

http://www.fdic.gov/bank/individual/.../banklist.html

Community First Bank	Prineville	OR	23268	August 7, 2009	August 7, 2009
Community National Bank of Sarasota County	Venice	FL	27183	August 7, 2009	August 7, 2009
First State Bank	Sarasota	FL	27364	August 7, 2009	August 7, 2009

July 24 was a bit of a challenge with its 7

Total banks failed in 2009 so far: 72

http://money.cnn.com/2009/08/07/news...s&iref=topnews

bank failures 080709.gif

[c1ue]

Re: How I learned to love the economic crisis

Any idea how the 1989 bank closings compare to this year's bank closings if you compared the amount of branches the banks had, not just the individual banks? Aren't there a lot less banks now than there were in 1989 since a lot of them were bought out?

1989 bank statistics:

http://www.fdic.gov/bank/historical/...989/index.html

Open Financial Institutions Insured by FDIC ($ in Billions)

Commercial Banks - FDIC Regulated

Item	1988	1989	Percent Change
Number	13,123	12,709	-3.15%
Total Assets	$3,130.8	$3,299.4	5.39%
Return on Assets	0.82%	0.49%	-40.24%
Return on Equity	13.19%	7.71%	-41.55

Savings Banks – FDIC Regulated

Item	1988	1989	Percent Change
Number	471	469	-0.42%
Total Assets	$238.1	$240.5	1.01%
Return on Assets	0.46%	-0.11%	--
Return on Equity	5.93%	-1.42%	--

Savings Associations – FHLBB/OTS Regulated

Item	1988	1989	Percent Change
Number	2,967	2,618	-11.76%
Total Assets	$1,368.4	$1,187.0	-13.26%
Return on Assets	-0.44%	-0.44%	0.00%
Return on Equity	-11.75%	-9.41%	19.91%

2009 bank statistics:

http://www2.fdic.gov/qbp/2008sep/all1a.html

TABLE I-A. Selected Indicators, FDIC-Insured Institutions*
	2008**	2007**	2007	2006	2005	2004	2003
Return on assets (%)	0.33	1.10	0.81	1.28	1.28	1.28	1.38
Return on equity (%)	3.35	10.49	7.75	12.30	12.43	13.20	15.05
Core capital (leverage) ratio (%)	7.81	8.14	7.97	8.22	8.25	8.11	7.88
Noncurrent assets plus other real estate owned to assets (%)	1.54	0.73	0.94	0.54	0.50	0.53	0.75
Net charge-offs to loans (%)	1.18	0.50	0.59	0.39	0.49	0.56	0.78
Asset growth rate (%)	6.83	8.10	9.89	9.04	7.63	11.37	7.58
Net interest margin (%)	3.33	3.31	3.29	3.31	3.47	3.52	3.73
Net operating income growth (%)	-62.87	-9.21	-27.57	8.53	11.43	3.99	16.38
Number of institutions reporting	8,384	8,559	8,534	8,680	8,833	8,976	9,181
Commercial banks	7,146	7,303	7,283	7,401	7,526	7,631	7,770
Savings institutions	1,238	1,256	1,251	1,279	1,307	1,345	1,411
Percentage of unprofitable institutions (%)	21.00	10.33	12.07	7.93	6.22	5.97	5.99
Number of problem institutions	171	65	76	50	52	80	116
Assets of problem institutions (in billions)	$116	$19	$22	$8	$7	$28	$30
Number of failed/assisted institutions	13	2	3	0	0	4	3

[c1ue]

Re: How I learned to love the economic crisis

Another end of week, another set of failed banks:

Bank Name	City	State	CERT #	Closing Date	Updated Date
Mainstreet Bank	Forest Lake	MN	1909	August 28, 2009	August 28, 2009
Bradford Bank	Baltimore	MD	28312	August 28, 2009	August 28, 2009

Skoal! Skoal!

[Ghent12]

Re: How I learned to love the economic crisis

Whoa, Mainstreet went bankrupt already?! :rolleyes:

[c1ue]

Re: How I learned to love the economic crisis

Missed the 5 failed banks last week due to a Saturday morning operation...

But no fear! Another week is here!

Venture Bank	Lacey	WA	22868	September 11, 2009	September 11, 2009
Brickwell Community Bank	Woodbury	MN	57736	September 11, 2009	September 11, 2009
Corus Bank, N.A.	Chicago	IL	13693	September 11, 2009	September 11, 2009
First State Bank	Flagstaff	AZ	34875	September 4, 2009	September 11, 2009
Platinum Community Bank	Rolling Meadows	IL	35030	September 4, 2009	September 11, 2009
Vantus Bank	Sioux City	IA	27732	September 4, 2009	September 11, 2009
InBank	Oak Forest	IL	20203	September 4, 2009	September 11, 2009
First Bank of Kansas City	Kansas City	MO	25231	September 4, 2009	September 11, 2009

Skoal! Skoal! Skoal!

[cjppjc]

Re: How I learned to love the economic crisis

Maybe part of the problem is there are too many banks. Well that wont be much of a problem any more.

Hope the operation was minor.

[ThePythonicCow]

Re: How I learned to love the economic crisis

This puts us at 92 FDIC closures for the year. Corus Bank was larger than most. From http://www.marketwatch.com/story/cor...-91-2009-09-11 :

Chicago-based Corus Bank, which had $7 billion in assets and $7 billion in deposits as of June 30, the FDIC said. The bank's deposits have been assumed by MB Financial Bank, the FDIC added. MB Financial will pay the FDIC a premium of 0.2% to assume all of the failed bank's deposits, and has agreed to purchase roughly $3 billion of its assets, "comprised mainly of cash and marketable securities," the regulator said. Reports of Corus Bank's failure had surfaced earlier Friday. The Corus failure will cost the federal deposit-insurance fund $1.7 billion.

[c1ue]

Re: How I learned to love the economic crisis

Corus was also one of the banks consistently offering interest rates in the top 10 on deposits...

recent reference: outside site referenced by iTulip community

http://www.itulip.com/forums/showthread.php?t=11365

Ironically enough 4 of the 6 banks listed by name in the article referenced above have now failed - within 1 month of said article.

Who says stress testing doesn't work?

Banks mentioned as being in trouble by Bloomberg (here) include Wisconsin’s Marshall & Ilsley Corp. (MI), Georgia’s Synovus Financial Corp. (SNV), Michigan’s Flagstar Bancorp (FBC), Chicago-based Corus Bankshares Inc. (CORS), Austin-based Guaranty Financial Group Inc (GFG), and Colonial BancGroup Inc. (CNB) in Montgomery, Alabama.

Marshall & Ilsey appears to be hurting badly, but on the other hand Synovus appears to be surviving by cannibalizing smaller failed banks. B of A II?

Another older reference: Jim Willie (www.goldenjackass.com via iTulip community)

http://www.itulip.com/forums/showthread.php?t=4243

The Texas Ratio is calculated by dividing non-performing loans at a bank, including those 90 days delinquent, by their tangible equity capital plus money set aside for future loan losses. Using this ratio, IndyMac Bancorp, Sterling Financial, Corus Bankshares, Imperial Capital Bancorp, and GMAC Bank are all on the verge of busts. Look for these banks to possibly lead the list of failures, each with unique vulnerabilities.

Indymac: check
GMAC: bailed out
Corus: check
Imperial Capital Bancorp: coming soon? http://www.federalreserve.gov/newsev...20090804b1.pdf

Sterling Financial: coming soon: http://www.costar.com/News/Article.a...BC3A5B47EACA42

Fitch Ratings has downgraded Sterling Financial Corp.'s long-term issuer default rating (IDR) to 'CCC' from 'BB' and short-term IDR to 'C' from 'B'.

The rating actions follow Sterling Financial's announcement that it will defer its next scheduled interest payments on $245.3 million of junior subordinated debt and $303 million of Class A preferred stock issued to the U.S. Treasury under its Capital Purchase Program.

[c1ue]

Re: How I learned to love the economic crisis

Only 1 bank failure this week and 2 last week.

Must be the recovery!

Georgian Bank	Atlanta	GA	57151	September 25, 2009	September 25, 2009
Irwin Union Bank, F.S.B.	Louisville	KY	57068	September 18, 2009	September 22, 2009
Irwin Union Bank and Trust Company	Columbus	IN	10100	September 18, 2009	September 22, 2009

Skoal!

[metalman]

Re: How I learned to love the economic crisis

Only 1 bank failure this week and 2 last week.

Must be the recovery!

Georgian Bank	Atlanta	GA	57151	September 25, 2009	September 25, 2009
Irwin Union Bank, F.S.B.	Louisville	KY	57068	September 18, 2009	September 22, 2009
Irwin Union Bank and Trust Company	Columbus	IN	10100	September 18, 2009	September 22, 2009

Skoal!

georgian bank hit fdic for $2 billion.

[doom&gloom]

Re: How I learned to love the economic crisis

georgian bank hit fdic for $2 billion.

a billyan here, a billyan there... so what, afraid Benny gonna run out of
ink and paper for the presses? :p