Rumor from Peak Oil forum about FDIC

[Shakespear]

Take a look and see what you make of this thread

"WARNING - POSSIBLE FDIC BANK CLOSURES THIS WEEKEND"

[Mega]

Re: Rumor from Peak Oil forum about FDIC

Nope, can't find it!
Mike

[Shakespear]

Re: Rumor from Peak Oil forum about FDIC

Ooops, it is in the Open Forum of PeakOil.com and to see it you need to register. No clue why they have it setup this way.

Here is the first post that started it.

Posted: Fri May 23, 2008 8:05 pm Post subject: WARNING - POSSIBLE FDIC BANK CLOSURES THIS WEEKEND
There is the possibility of a few more bank closures this weekend, meaning, this afternoon COB (close of business). The information I have is not 100% certain but came to me with enough credibility that I will pass it along. I cannot give the name of the source. The information is that some banks in the Kansas City area, linked to banking issues in my area of Arkansas, may be closed by the FDIC this weekend. So, if you have any accounts in any Kansas banks, you should consider what your options are right now, bc if the FDIC acts as it has in the past, it will shut down the in question banks by COB today. Certainly, if you have more than the insured limits of 100k per person, protect yourself before COB this afternoon. Person would not give me specifics on the banks in question. All I know is "Kansas City area" are having issues with FDIC.

[Slimprofits]

Re: Rumor from Peak Oil forum about FDIC

related to this:

Small Arkansas bank fails, taken over by Iberiabank May 09, 2008

ANB Financial, a small Arkansas bank and its deposits were taken over by Pulaski Bank and Trust, a unit of Iberiabank Corp Friday, the Federal Deposit Insurance Corp said.

[..]

The bank failed because it extended construction and development loans with poor underwriting standards into other states including Utah, Wyoming and Idaho, a source familiar with ANB's failure said.

It also could not keep up with high short-term interest rates offered on deposits, the source said.

As of Jan. 31, 2008, ANB Financial had about $2.1 billion in assets and $1.8 billion in total deposits, the agency said.

[..]

The failure of the Bentonville, Arkansas-based bank will cost the FDIC's insurance fund an estimated $214 million, the agency said.

The banks's regulator, the Office of the Comptroller of the Currency, said it closed down the bank after finding out it was undercapitalized.

Comptroller John Dugan has warned that many banks across the United States need to review their underwriting practices in the commercial real estate lending portfolios where they might be overextended. He said banks should also prepare for bad debts from credit cards and home equity loans.

The two other banks that failed this year were Douglass National Bank of Kansas City, Missouri, which had about $58.5 million in assets, and Hume Bank, also in Missouri, with about $18.7 million in assets.

In 2007, a total of three U.S. banks failed.

At the end of 2007, the FDIC had 76 institutions on its problem list, totaling $22 billion in assets.

[Shakespear]

Re: Rumor from Peak Oil forum about FDIC

They took down the thread. Reason: potential inside trading pbroblems could result from having this there.

[FRED]

Re: Rumor from Peak Oil forum about FDIC

They took down the thread. Reason: potential inside trading pbroblems could result from having this there.

It's illegal in the US to speculate about specific bank failing.

[GRG55]

Re: Rumor from Peak Oil forum about FDIC

It's illegal in the US to speculate about specific bank failing.

Huh?!? What next? It becomes illegal to speculate about specific political candidates failing? :p