As many as 1,000 U.S. banks may fail

[morganist]

Quote from texrex2002:

bylosellhi:

I can tell what threads are yours without ever looking at the author. You post so much sensationally bearish crap that I get tired of reading it.

Don't you ever have a positive moment, or a light at the end of the tunnel moment?

I've actually looked back to your posts in '06, and even then you were posting all these sorts of negative links.

Sometimes I even get the feeling that the forum administrator is using your username just trying to rile people up with inflamatory nonsense, a-la-fox news or rush limbaugh.

If you've been massively short since August '06 (which you should have been, given your ceaseless stream of negative links), you should be off spending some quality time on your yacht with a half dozen hookers, not posting here...

I know that the ignore list function works very well, but I keep hesitating with you, since some of your articles are interesting on the surface...

How about posting some bullish data? There must be some out there...

I have a less pessimistic view of your posts. I think that it is good to have a realist who looks at the long term trends as well as short term quick bucks. Also I think your posts usually consist of the best links and info on this forum. They are well informed and detailed. Brilliant for research and furthering knowledge on subjects previously unknown to some members.

I would never put you on the ignore list.

 

[Wallet]

Quote from texrex2002:

bylosellhi:

I can tell what threads are yours without ever looking at the author. You post so much sensationally bearish crap that I get tired of reading it.

Don't you ever have a positive moment, or a light at the end of the tunnel moment?

I've actually looked back to your posts in '06, and even then you were posting all these sorts of negative links.

Sometimes I even get the feeling that the forum administrator is using your username just trying to rile people up with inflamatory nonsense, a-la-fox news or rush limbaugh.

If you've been massively short since August '06 (which you should have been, given your ceaseless stream of negative links), you should be off spending some quality time on your yacht with a half dozen hookers, not posting here...

I know that the ignore list function works very well, but I keep hesitating with you, since some of your articles are interesting on the surface...

How about posting some bullish data? There must be some out there...

He/She's a propaganda machine.

I can read the news for myself, trust me THE DAILY SPIN is pounded into our heads on a daily basis. I never see any correlation to trading offered in these posts.

This is an attempt to flood the forums with negativity and a desperate need to convince us that the Stimulus Handout is needed.

Shrill fodder.

fwiw,

 

[texrex2002]

Quote from jjf:

It is all in the way that you describe things.

Try this texrex.

"California creates 30,000 jobs.
The state was to issue 50,000 pink slips tomorrow but was able to reduce the figure to ONLY 20,000 thereby creating 30,000 jobs"

I bet you are feeling better right now texrex.

awesome. I love it. I'm going to go buy me some Cali IOU's right away.

 

[jjf]

Quote from texrex2002:

awesome. I love it. I'm going to go buy me some Cali IOU's right away.

See I told you it works.
In no time at all we will be back to full employment.

GM were expecting to lose 90% of their sales, but only lost 50%
Another 40% gain.

The trick is to exadurate the downside then claim a victory when the numbers are better

 

[tradersboredom]

in the banking business, the bigger the bank the stronger it is.

the small undercapitalized insolvent banks are being acquired by another bank.

a bank with only 30 customers trading commodities. banks shouldn't be even trading in commodities.

Quote from ByLoSellHi:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aRgn03yslgCU&refer=home

Regulators Shut 4 Banks, Toll Reaches 13; Deposit Fund Shrinks
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By Margaret Chadbourn

Feb. 15 (Bloomberg) -- Banks in four U.S. states with more than $1 billion in assets were closed in a single day, boosting the toll of seized lenders to 13 this year and further draining a deposit insurance fund amid record home foreclosures.

Florida, Nebraska, Illinois and Oregon regulators took over the banks Feb. 13 and, with the Federal Deposit Insurance Corp., sold $807.5 million in deposits and arranged to open the branches under new names on Feb. 17. The FDIC said the shutdowns, the most on one day since 1992, will cost the agency $341.6 million.

Florida’s Riverside Bank of the Gulf Coast in Cape Coral, Nebraska’s Sherman County Bank in Loup City, Illinois’ Corn Belt Bank and Trust Co. of Pittsfield and Oregon’s Pinnacle Bank of Beaverton were shut. TIB Bank of Naples bought Riverside’s $424 million of deposits, the FDIC said. Heritage Bank of Wood River got Sherman County’s $85.1 million of deposits, Carlinville National Bank gained Corn Belt’s $234.4 million deposits and Washington Trust Bank of Spokane got Pinnacle’s $64 million.

Regulators have now seized 13 banks, and seven so far in February are the most for a month since 1993. State and federal agencies shuttered 25 banks last year, matching the total for 2001-2007, as home foreclosures soared and bank profits tumbled. The FDIC has doubled premiums it charges banks to replenish its reserves, which had $34.6 billion as of the third quarter.

The Obama administration is seeking to jolt the economy with a bank rescue using $350 billion from the Troubled Asset Relief Program, a $787 billion stimulus package and a plan to stem foreclosures. The housing plan involves the U.S. subsidizing as much as $50 billion for interest-rate cuts to help borrowers avoid losing their homes, said a person briefed on the proposal.

Troubled Banks

Nebraska Banking Commissioner John Munn said Sherman County Bank, which had four offices in central Nebraska, became the first state lender shut in two decades because of losses stemming from commodity trading by about 30 of its farm customers.

“This closing is not indicative of the general condition of our Nebraska banks,” Munn said, according to the Omaha World Herald. “I do not believe this is the tip of an iceberg.”

Heritage Bank is paying a 6.5 percent premium for Sherman County’s deposits, the FDIC said.

Riverside Gulf Coast Banking Co., parent of the Florida bank, in late October agreed with regulators to strengthen management and lending practices within 60 days. The Federal Reserve said Riverside would hire a consultant to write a management plan with qualified personnel and raise additional capital for the bank, with nine offices on Florida’s Gulf coast.

TIB agreed to pay the FDIC a premium of 1.3 percent for the deposits, without taking $142.6 million in brokered deposits. The FDIC said it will pay brokers directly.

Illinois, Oregon

Corn Belt Bank in December accepted an FDIC order that required the two-branch bank to improve management, raise capital and end hazardous lending and lax collection practices, the agency said. Carlinville National will pay a 1.75 percent premium for Corn Belt’s deposits, and left $92 million in brokered deposits with the FDIC to resolve with the brokers.

Pinnacle in May was required to notify the government before adding to its board or hiring senior executives. Oregon officials Feb. 13 said the bank relied on brokered deposits that led to “significant liquidity problems,” while a “high level” of commercial real-estate loans on which collections had stopped resulted in 2007 and 2008 losses, the regulator said.

Pinnacle’s single office will reopen Feb. 17 as a branch of Washington Trust, which is taking deposits, including brokered accounts, and assuming $72 million of the assets, the FDIC said.

“This acquisition gives Washington Trust full branching powers in the state of Oregon to enhance our services to our existing customers in the market and to consider expansion into key communities in and around the Portland area,” said Washington Trust Chief Executive Officer Peter Stanton.

U.S. Response

Treasury Secretary Timothy Geithner outlined the bank rescue Feb. 10 and pledged to remove illiquid assets from banks’ balance sheets and spur lending. Private investors have expressed an interest in joining the government in the fund, Lawrence Summers, director of the National Economic Council, said Feb. 13 on Bloomberg Television’s “Political Capital with Al Hunt.”

The FDIC, bank regulators and Congress are taking steps to help banks avoid losses. Legislation that would boost deposit insurance coverage is being considered by Congress. The House Financial Services Committee approved a measure Feb. 4 to raise coverage to $250,000 per depositor per bank, from $100,000. The Washington-based agency oversees 8,384 institutions with $13.6 trillion in assets.

Congress also may extend the FDIC’s line of credit with the Treasury to $100 billion from $30 billion to replenish the deposit fund, which banks support with fees on their accounts. The FDIC said bank failures through 2013 may cost $40 billion.

Problem Banks

The FDIC classified 171 banks as “problem” in the third quarter, a 46 percent jump from the second, and said industry earnings fell 94 percent to $1.73 billion from the previous year. A new report may be released this month.

As many as 1,000 U.S. banks may fail in the next three to five years from mounting losses on commercial real-estate loans, RBC Capital Markets analysts said, almost double the one-year tally at the height of the saving-and-loan collapse. Most of the failures may occur at banks with less than $2 billion in assets.

More than 250,000 foreclosures were filed in January, the 10th straight month of a quarter-million filings, RealtyTrac Inc., the Irvine, California-based provider of real estate data, said in a statement this week.

To contact the reporter on this story: Margaret Chadbourn in Washington at mchadbourn@bloomberg.net.
Last Updated: February 15, 2009 00:01 EST

 

[jjf]

Quote from tradersboredom:

in the banking business, the bigger the bank the stronger it is.

the small undercapitalized insolvent banks are being acquired by another bank.

This is excellent thinking.

The hundreds of thousands of layoffs resulting from the takeovers could be renamed RUA (released under-utilized assets)
They cannot become 'collateral damage' as we reserve that title for foreigners whose names we cannot pronounce.

The RUA would not be shown on the jobs reports and so more good news there, and then they could be redeployed delivering pizzas and show up on next months job creations.

Bring it on!!!