NEW FDIC RULE MAY QUICKEN THE DEMISE OF WEAK BANKS
Beginning Jan. 1, 2010, banks the FDIC regards as short of "well capitalized" will not be allowed to pay more than 75 basis points above the U.S. average rate for deposits, a new hurdle that could hinder their ability to compete for customers and threaten their liquidity and a development that industry observers say could lead to a sudden rise in failures early next year.
Referenced Tickers: MBR APAB
11/10/2009 3:51 PM ET
Thursday, November 12, 2009
Monday, November 9, 2009
FDIC scam alert
The FDIC put out an alert October 27, 2009 about a rescent email scam. Bogus e-mails fradulently claiming to be from the FDIC are attempting to trick recipients into installing unknown software on their personal computers. The email does not ask the recipient to input any account numbers or specific information, but these eamils falsely indicate that recipients should download and open a "personal FDIC insurance file" to check their deposit insurance coverage. The "insurance file" appears to be a form of spyware intended to collect personal, confidential information as the user later logs into their actual banking web site, or enters credit card numbers for web purchases, etc.
Information about counterfeit items, cyber-fraud incidents and other fraudulent activity should be sent to:
FDIC's Cyber-Fraud and Financial Crimes Section
550 17th Street, N.W., Room F-3054
Washington, D.C. 20429
or transmitted electronically to alert@fdic.gov
The full article may be accessed at:
http://www.fdic.gov/news/news/SpecialAlert/2009/sa09183.html
Information about counterfeit items, cyber-fraud incidents and other fraudulent activity should be sent to:
FDIC's Cyber-Fraud and Financial Crimes Section
550 17th Street, N.W., Room F-3054
Washington, D.C. 20429
or transmitted electronically to alert@fdic.gov
The full article may be accessed at:
http://www.fdic.gov/news/news/SpecialAlert/2009/sa09183.html
Wednesday, November 4, 2009
Peer bank downgraded
This morning S&P downgraded the long term rating of Regions' parent company one notch to BBB from BBB+. Regions' long term rating at the bank level was also downgraded one notch to BBB+ from A-. Both the parent company and bank were placed on negative outlook.
Monday, November 2, 2009
US Bank acquires FBOP Corporation subsidiaries
October 30, 2009 US Bank announced they had acquired the banking subsidiaries of FBOP Corporation of Oak Park, Illinois, from the FDIC. This transaction includes nine different banks with more than $18 billions in total assets and 150 branches in California, Illinois, Arizona and Texas. The nine banks that are part of this acquisition are: BankUSA, N.A.; California National Bank; Citizens National Bank; Madisonville State Bank; North Houston Bank; Pacific National Bank; Park National Bank; San Diego National Bank; and Community Bank of Lemont.
U.S. Bank will receive approximately $18.4 billion of assets and assume approximately $18.3 billion of liabilities, including $15.4 billion of both insured and uninsured deposits, of the nine different banks that are part of FBOP.
The nine banks involved in this transaction will continue to operate under their current names and will be re-branded as U.S. Bank branches in the near future.
Prior to this announcement, U.S. Bank had 570 branch offices in California, 75 branch offices in Arizona and 127 branch offices in Illinois. U.S. Bank currently does not have a retail banking presence in Texas.
U.S. Bank will receive approximately $18.4 billion of assets and assume approximately $18.3 billion of liabilities, including $15.4 billion of both insured and uninsured deposits, of the nine different banks that are part of FBOP.
The nine banks involved in this transaction will continue to operate under their current names and will be re-branded as U.S. Bank branches in the near future.
Prior to this announcement, U.S. Bank had 570 branch offices in California, 75 branch offices in Arizona and 127 branch offices in Illinois. U.S. Bank currently does not have a retail banking presence in Texas.
US Bank Stock Price
It will be interesting to see what happens to the stock price this week, with CIT declaring bankruptcy yesterday. US Bank also announced its acquisition of 9 banks through an FDIC facilitated transaction. More details on both to follow.
Stock Quote
USB (Common Stock)
Price 23.75 Change + 0.53
Volume 244,494 % Change 2.28%
Intraday High 23.77 52 Week High 32.35
Intraday Low 23.55 52 Week Low 8.06
Today's Open 23.55 Currency US Dollar
Previous Close 23.22 Exchange NYSE
11/02/09 9:30 a.m. ET Pricing delayed 20 minutes
Stock Quote
USB (Common Stock)
Price 23.75 Change + 0.53
Volume 244,494 % Change 2.28%
Intraday High 23.77 52 Week High 32.35
Intraday Low 23.55 52 Week Low 8.06
Today's Open 23.55 Currency US Dollar
Previous Close 23.22 Exchange NYSE
11/02/09 9:30 a.m. ET Pricing delayed 20 minutes
Tuesday, October 27, 2009
Government Bail Out and Salary Cuts
The Obama Administration has appointed Kenneth R. Feinberg to review and reduce the salary of the executives for the following 7 companies: Citigroup, Bank of America, General Motors, Chrysler, GMAC, Chrysler Financial, and American International Group. These 7 companies have received a total of approximately $250 in bail out funds from the Troubled Assets Relief Program (TARP).
Feinberg’s official title is Special Master on Compensation, bestowed upon him be the Obama administration. Feinberg has sole discretion to set compensation for the five top senior executives plus the next 20 highest-paid people at each of the seven companies.
Feinberg’s plan will reduce cash salaries of the executives at these companies by an average of 90%. Other reductions will include eliminating the use of corporate jets for personal travel, chauffeured drivers, and payment of country club memberships.
The official announcement of these cuts is supposed to be announced by The Treasury Department on Thursday, October 29, 2009.
Resources:
Murakami, Tomoeh and Dennis, Brady. U.S. to cut pay for bailed-out bosses. The Washington Post. 22 Oct. 2009. Viewed 27 Oct. 2009. http://www.washingtonpost.com/wpdyn/content/article/2009/10/21/AR2009102102719.html
Feinberg’s official title is Special Master on Compensation, bestowed upon him be the Obama administration. Feinberg has sole discretion to set compensation for the five top senior executives plus the next 20 highest-paid people at each of the seven companies.
Feinberg’s plan will reduce cash salaries of the executives at these companies by an average of 90%. Other reductions will include eliminating the use of corporate jets for personal travel, chauffeured drivers, and payment of country club memberships.
The official announcement of these cuts is supposed to be announced by The Treasury Department on Thursday, October 29, 2009.
Resources:
Murakami, Tomoeh and Dennis, Brady. U.S. to cut pay for bailed-out bosses. The Washington Post. 22 Oct. 2009. Viewed 27 Oct. 2009. http://www.washingtonpost.com/wpdyn/content/article/2009/10/21/AR2009102102719.html
US Bank Stock Quote
Stock Quote
USB (Common Stock)
Price 24.25 Change + 0.10
Volume 15,095,698 % Change 0.41%
Intraday High 24.35 52 Week High 32.35
Intraday Low 23.92 52 Week Low 8.06
Today's Open 24.30 Currency US Dollar
Previous Close 24.15 Exchange NYSE
10/27/09 4:00 p.m. ET Pricing delayed 20 minutes
USB (Common Stock)
Price 24.25 Change + 0.10
Volume 15,095,698 % Change 0.41%
Intraday High 24.35 52 Week High 32.35
Intraday Low 23.92 52 Week Low 8.06
Today's Open 24.30 Currency US Dollar
Previous Close 24.15 Exchange NYSE
10/27/09 4:00 p.m. ET Pricing delayed 20 minutes
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