These are just highlights from the news story I only added the highlights below I'll post link to full story
WASHINGTON – Federal regulators on Friday shut down two big thrifts based in Southern California, saying they fell victim to the acute distress in
the housing market in that state.
The failures of Downey Savings and Loan Association, based in Newport Beach, and PFF Bank & Trust of Pomona brought the number of U.S. bank failures
this year to 22.
The Federal Deposit Insurance Corp. was appointed receiver of the two thrifts. U.S. Bank, based in Minneapolis, acquired all the deposits of both.
Downey, the 23rd-largest U.S. savings and loan, had assets of $12.8 billion and deposits of $9.7 billion as of Sept. 30. PFF, the 38th-largest, had
assets of $3.7 billion and $2.4 billion in deposits.
Also Friday, Georgia regulators shut down The Community Bank, a small bank in Loganville, Ga. The FDIC was made receiver of the bank, which had $681
million in assets and $611.4 million in deposits as of Oct. 17. The FDIC said all the bank's deposits and about $84.4 million of its assets will be
acquired by Bank of Essex, of Tappahannock, Va. Its four branches will reopen Monday as offices of Bank of Essex.
The 22 bank failures so far this year compare with three for all of 2007 and are far more than in the previous five years combined. It's expected
that many more banks won't survive the next year of economic tumult. The pressures of tumbling home prices, rising mortgage foreclosures and tighter
credit have been battering many banks, large and small, nationwide.
This year's failures also include Seattle-based thrift Washington Mutual Inc. in late September, the biggest bank collapse in U.S. history. It had
$307 billion in assets.
Well over half of the roughly 8,500 federally insured banks and savings and loans are expected to tap the FDIC's temporary guarantees.
Of the 8,500 federally insured banks and thrifts, the FDIC had 117 on its internal list of troubled institutions as of June 30, a five-year high. The
agency doesn't disclose the banks' names.
Feds shut 2 Calif thrifts
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My old bank was one of the 22 and I'm betting my new bank is one of the 177 things are still bad her in Calif.
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I won't list the numerous acts of greed involving fraudulent loans, "get-rich-quick" schemes, creative financing and deceptive marketing that have
brought us to where we are. That information is readily available to those who are interested. I remember reading articles, essays and predictions of
a severe economic collapse pending for the USA back as far as the mid 90's. So this did not sneak up on us; there has been at least a decade of
warnings.
What I am wondering now is why the collapse isn't happening at an even faster pace. I am sure that those in the investment / financial community are
more aware of the economic disaster that is close at hand than I am, the signs are everywhere. Why do people believe that somehow our government is
going to find a way out of this? DO we really believe that all the high level meetings of international money managers is done with the intention of
helping the common working class man out of his desperate financial situation?
My impression is that the plan is now so far advanced that there is nothing that can be done to stop it and that no-one becomes President of the USA
unless he has agreed, beforehand, to cooperate with the plan.
My conclusion is to enjoy what I have today, cherish every moment that gives the opportunity to be happy, let those who I love know that I love them,
for all this may soon be over.
"To resist is futile."
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reply to post by DaddyBare
I wouldn't lose my sleep over this. There were 8,430 FDIC-insured commercial banks as of August 2008 in the USA. (FDIC did the counting.)
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Originally posted by vBreezo
What I am wondering now is why the collapse isn't happening at an even faster pace.
Discount window loans, TARP capital injections, debt guarantees, removal of mark-to-market....
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Originally posted by vBreezo
What I am wondering now is why the collapse isn't happening at an even faster pace.
In case you don't understand the new, hastily invented financial terms, there is a substitute: There is a difference between investment banks and
commercial banks. The former guys make more money but the activity carriers a higher risk. Now when the mortgage bubble burst, all the fancy
"financial instruments" designed to squeeze the most of the idea that nearly every American can afford buying a house and make payments for 30 years
turned no good.
Most of the mid-level commercial banks were doing business the old-fashioned way and didn't get screwed by purchasing those get-rich-quick assets and
they stayed away from making unrealistic loans -- the from park bench to Beverly Hill style. That's why the vast majority of mid-level commercial
banks are still around with no TARP help nor any other government help and are not expected to go under.
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