December 5, 1991 |
In trying to place the blame for bank failures, federal officials have unfairly pointed a finger at effective loan programs for low-income Americans. It would be another sad legacy of the greedy 1980s if the havoc wrought by indiscrete bankers led to the elimination of loans for the disadvantaged. Last month the departing chairman of the Federal Deposit Insurance Corporation, William Seidman, called for an end to the Community Reinvestment Act, which was established in 1977 to set guidelines for bank lending to the local communities.
May 1, 1988 |
Not since the Great Depression has so much bad news afflicted the U.S. banking system. More banks and savings associations have failed in the last year - 232 in 1987 and more than 60 this year - than after the Crash of 1929. The Federal Savings & Loan Insurance Corp. (FSLIC) fund, which backs deposits at thrifts, is variously estimated to be $11.6 billion to $50 billion in the red. Even the healthier Federal Deposit Insurance Corp. (FDIC) reports that its ratio of reserves to insured deposits has fallen to a 55-year low. So it's no wonder some depositors are asking, "Is my money really safe?"
September 20, 2009 |
A year after the financial crisis first stirred comparisons to the Great Depression, the pace of bank failures is rising. But as the annual count heads toward triple digits for the first time since 1992, finance experts warn that the worst may be yet to come, and also that the toll so far belies the magnitude of the crisis. As of Friday, the Federal Deposit Insurance Corp. had taken over 94 banks in 2009. The failures ranged from the tiny Dwelling House Savings & Loan Association, of Pittsburgh, with $13.4 million in assets, to Colonial BancGroup Inc., of Montgomery, Ala., with $25 billion in assets.
November 10, 1992 |
Banks will continue to fail at a high rate, and the cleanup of the savings and loan industry needs government funding, a top Federal Reserve official said yesterday. Robert Parry, president of the Federal Reserve Bank of San Francisco, said the federal Resolution Trust Corp. should be given the financing it needs to continue dealing with problem thrifts. "We'll continue to see an elevated rate of bank failures. . . . This situation calls for giving the highest priority to providing the RTC with appropriate funding," he said in a speech prepared for delivery.
February 1, 1993 |
Remember the "December Surprise?" Surprise! It didn't happen. Not only wasn't there a national wave of bank failures waiting to take place after the presidential election in November - as candidate Ross Perot and others predicted in the heat of the campaign - but the U.S. banking system ended 1992 healthier than even optimists had thought. With few exceptions, banks across the country reported substantially higher profits for both the fourth quarter and the year. Stable interest rates and a steadily improving economy allowed even many shaky institutions to recover from the disasters of 1989 and 1990.
February 12, 2002 |
Hundreds of millions of dollars in corporate profits have vanished in the last two weeks, in a series of embarrassing disclosures that have left regulators, accountants and investors jittery amid the accounting scandals that bankrupted Enron Corp. Banks have taken a particular drubbing, in a series of admissions that the double-digit profit growth of the last several years, while charming Wall Street mutual funds, pension plans, and other big investors, papered over billions of dollars in hidden losses.
August 19, 2011 |
WASHINGTON - Regulators yesterday shuttered a small bank near Philadelphia, boosting to 65 the number of U.S. bank failures this year. The pace of closures has slowed as the economy has slowly improved and banks work their way through the bad debt accumulated in the Great Recession. By this time last year, regulators had shuttered 118 banks. The Federal Deposit Insurance Corp. seized Public Savings Bank, in Huntingdon Valley, with one branch, $46.8 million in assets and $45.8 million in deposits.
January 21, 2012
Federal regulators on Friday closed the one-branch American Eagle Savings Bank in Boothwyn, Delaware County, and sold its assets to a Maryland bank. The Federal Deposit Insurance Corp. said the failed bank would reopen Saturday as a branch of Capital Bank N.A. Customers could continue to use their checks and ATM cards, and deposit insurance would remain in effect, "so there is no need for customers to change their banking relationship" at this time, the FDIC said. As of Sept. 30, American Eagle had approximately $19.6 million in total assets and $17.7 million in total deposits.
June 23, 1990 |
Despite its efforts, Texas still ranks first in a number of categories it would just as soon not be in at all. For the past four years, the state has led the nation in the number of bank failures. Last year, 133 commercial banks in the state failed - and 62 have failed so far this year, almost one-half of the failures nationwide. That is why Rep. Henry B. Gonzalez (D., Texas), chairman of the House committee probing bank failures, came to his home state yesterday to hold two days of hearings and talk dollars and sense.
January 9, 1991 |
Because federal regulators thought it was only a matter of time before the Bank of New England failed, they had set aside money to cover the losses expected from paying off depositors and selling off the bank. So the estimated $2.3 billion cost of the Boston bank's failure - the fourth-costliest U.S. banking collapse - will not reduce further the $9 billion remaining in the depleted federal fund that insures bank deposits, regulators said yesterday. "We reserved for the $2.3 billion in 1990 because we knew there was a possibility - if not a probability - that the Bank of New England would fail," said Alan Whitney, spokesman for the Federal Deposit Insurance Corp.