Infinite Unknown

Son of presidential nominee John McCain was reportedly former board member; closing marks the 11th bank failure this year.

WASHINGTON (AP) — Regulators on Friday shut down Silver State Bank, saying the Nevada bank failed because of losses on soured loans, mainly in commercial real estate and land development.

It was the 11th failure this year of a federally insured bank.

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Tags: bank failure, Banks, Credit Crisis, credit crunch, Economy, FDIC, Government, IndyMac, John McCain, mortgage crisis, Mortgages, U.S.

Published for some of the information on the economy.

Added: August 02, 2008

Source: YouTube

Tags: bailout, Barack Obama, China, Conspiracy, crash, debt, Democrats, Depression, Dollar, Economy, Fannie Mae, FDIC, financial crisis, Freddie Mac, Government, Hillary Clinton, India, IndyMac, Inflation, Iran, John McCain, Meltdown, Michael Mullen, Military, New World Order, Politics, Recession, Republicans, Russia, U.K., U.S.

WASHINGTON (Reuters) - Bank regulators closed a small Florida-based bank on Friday, the eighth U.S. bank to fail this year under pressure from a weak economy and a credit crisis precipitated by falling home prices.

The Federal Deposit Insurance Corp said First Priority Bank had $259 million in assets and $227 million in deposits and its failure will cost the federal fund that insures deposits an estimated $72 million.

SunTrust Banks Inc (NYSE:STI - News) has agreed to assume the insured deposits of First Priority, whose six branches will reopen Monday as branches of SunTrust Bank.

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Tags: bank failure, Banks, Credit Crisis, Economy, FDIC, IndyMac, mortgage crisis, Mortgages, U.S.

The Federal Deposit Insurance Corporation revealed on Friday that it had issued warnings to four small US banks that lacked sufficient reserves to cover potential loan losses.

The cease-and-desist orders issued in June said the four banks needed to raise more capital, expand their loss allowances and better oversee and diversify their loan portfolios. A fifth bank was cited for violating consumer protection laws.

Losses on mortages and other loans have helped bring down eight US banks this year, including one small Florida institution on Friday.

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Tags: bank failure, Banks, Economy, FDIC, IndyMac, mortgage crisis, Mortgages, U.S.

The Bush administration will be mailing out another batch of “stimulus” checks in the very near future. There’s no way around it. The Fed is in a pickle and can’t lower interest rates for fear that food and energy prices will shoot to stratosphere. At the same time, the economy is shrinking faster than anyone thought possible with no sign of a rebound. That leaves stimulus checks as the only way to “prime the pump” and keep consumer spending chugging along. Otherwise business activity will slow to a crawl and the economy will tank. There’s no other choice.
The daily barrage of bad news is really starting to get on people’s nerves. Most of the TV chatterboxes have already cut-out the cheery stock market predictions and no one is praising the “impressive powers of the free market” anymore. They know things are bad, real bad. A pervasive sense of gloom has crept into the television studios just like it has into the stock exchanges and the luxury penthouses on Manhattan’s West End. That same sense of foreboding is creeping like a noxious cloud to every town and city across the country. Everyone is cutting back on non-essentials and trimming the fat from the family budget. The days of extravagant impulse-spending at the mall are over. So are the “big ticket” purchases and the “go-for-broke” trips to Europe. Consumer confidence is at historic lows, disposal income is a thing of the past, and all the credit cards are at their limit. The country is drowning in red ink.

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Tags: bank failure, banking system, Banks, Ben Bernanke, bloggers, blogs, Bush administration, Economy, Fannie Mae, FDIC, Fed, Federal Reserve, Food Prices, Freddie Mac, George Bush, Government, Henry Paulson, IndyMac, Ron Paul

Its name somewhat anachronistically means “assembly of old men.” George Washington famously - and, it must now be admitted, with excessive optimism - characterized it as an institutional saucer intended to cool legislation passed in the intemperate heat of the moment. Its members demand, with entirely unwarranted self-approval, to be called, collectively, the World’s Greatest Deliberative Body.

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Tags: bailout, bank failure, Banks, Congress, Dollar, Economy, Fannie Mae, Fascism, FDIC, Fed, Federal Reserve, Freddie Mac, Government, Henry Paulson, IndyMac, middle class, mortgage crisis, Mortgages, Politics, Ron Paul, U.S., Wachovia, Wall Street Journal, Washington Mutual

CARSON CITY, Nev. (AP) - The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators.

The banks, owned by Scottsdale, Ariz.-based First National Bank Holding Co., were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.

The FDIC said the takeover of the failed banks was the least costly resolution and all depositors - including those with funds in excess of FDIC insurance limits - will switch to Mutual of Omaha with “the full amount of their deposits.”

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Tags: bank failure, Banks, Economy, FDIC, financial crisis, Government, IndyMac, mortgage crisis, Mortgages, Politics, U.S.

I called the death of Indymac Bancorp on Monday, July 7th. The Federal Deposit Insurance Corporation seized Indymac on Friday, July 11th.

I called the implosion of the two Government Sponsored Entities in the mortgage business, Fannie Mae and Freddie Mac on Wednesday, July 9th. Sunday, July 13th the White House announced a bailout for them.

Related article: Fed: No more bailouts, except Fannie Mae and Freddie Mac

Want to know what happens next? It’s ape ass ugly and it’s going to happen to you, so don’t say I didn’t warn you. Continue reading »

Tags: bailout, bank failure, bankruptcy, Banks, Bear Stearns, crash, Credit Crisis, Economy, Fannie Mae, FDIC, Fed, Federal Reserve, financial crisis, financial system, Freddie Mac, Gold, Government, hedge funds, IndyMac, Meltdown, Politics, Silver, U.S.

(RTTNews) - The FDIC is looking for ways to shore up its depleted deposit fund, including charging higher premiums on riskier brokered deposits, FDIC Chairman Sheila Bair said Friday.

However, that fund is “a myth,” according to longtime banking consultant Bert Ely, and consumers may end up paying the price of what is expected to be a growing wave of bank failures.
NYU Economics Professor Nouriel Roubini predicts that Congress will have to intervene in order to bail out the deposit fund.

“They’re going to run out of money, with certainty,” he predicted. “Congress is going to have to recapitalize the FDIC, those $50 billion plus is not going to be enough, by no means.”

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Tags: bank failure, Congress, Economy, FDIC, IndyMac, Nouriel Roubini

What will happen if “more” banks will fail?

Interesting comment:
“I was talking to a close friend yesterday and he told me that he just heard an “expert” on CNBC tell the audience that the failure of IndyMac was nothing to worry about - it was just one bank. How on God’s green earth do they allow such idiots to mis-lead the listeners? Just one bank? This is the second largest bank failure ever, (second in size only to the 1984 failure of Continental Illinois Bank which led to a big jump in the price of gold at the time). Don’t these fools realize that the Federal takeover of this “one bank failure” is going to leave 10,000 depositors with $1 billion in deposits that EXCEED the $100,000 FDIC insurance limit and they will be lucky to get any of it back. Don’t they realize that this “one bank failure” will use up 10% of the total FDIC fund, which is only $53 billion. How safe if your money in your bank? How safe is the dollar?” Source: Here

It looks like the entire financial system of the U.S. will fail.
If you take a closer look at the article below, then you will see how tense the situation already is.
And IndyMac was “just one bank”.
You will find more information below the following article.
- The Infinite Unknown

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July 17, 2008
Source: msnbc

Banks reportedly not taking IndyMac checks

Finally able to withdraw their money, customers can’t open new accounts

LOS ANGELES - The frustration didn’t end for some IndyMac customers when they finally were able to withdraw their funds from the failing Southern California bank seized last week by federal regulators.

Some people have run into more problems when they tried to deposit IndyMac cashier checks at other banks.

Sheryl MacPhee said she waited in line two hours Tuesday at an IndyMac branch in San Marino to liquidate a certificate of deposit. But when she took it to a Washington Mutual branch in South Pasadena to deposit, she said a manager told her their new policy was not to accept IndyMac checks. If the customer insisted, she said she was told, it could take eight weeks or more to access the full amount.

“Sure, IndyMac will give you a check,” MacPhee told the Los Angeles Times, “but what good is it if no other institution will accept it?”

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Tags: bailout, bank failure, bankruptcy, Dollar, Economy, FDIC, Fed, Federal Reserve, financial crisis, IndyMac, Stock Market, U.S.