Black People : 10th U.S. Bank Failure This Year

Discussion in 'Black People Open Forum' started by oldsoul, Aug 31, 2008.

  1. OldSoul

    OldSoul Permanent Black Man PREMIUM MEMBER

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    Integrity Bank Becomes 10th U.S. Failure This Year

    Aug. 29 (Bloomberg) -- Integrity Bank of Alpharetta, Georgia, was closed by U.S. regulators today, the 10th bank to collapse this year amid a surge in soured real-estate loans stemming from the worst housing slump since the Great Depression.
    Integrity Bank, with $1.1 billion in assets and $974 million in deposits, was shuttered by the Georgia Department of Banking and Finance and the Federal Deposit Insurance Corp. Regions Financial Corp., Alabama's biggest bank, will assume all deposits from Integrity, which was run by Integrity Bancshares Inc. The failed bank's five offices will open on Sept. 2 as branches of Regions, the FDIC said.

    Banks are being closed at the fastest pace in 14 years as financial companies report more than $505 billion in writedowns and credit losses since 2007. California lender IndyMac Bancorp Inc., which had $32 billion in assets, was closed July 11 in the third-largest bank seizure, contributing to a 14 percent drop in the U.S. deposit insurance fund that had $45.2 billion at the end of the in the second quarter. Regions will buy about $34.4 million in assets and will pay the FDIC a premium of 1.01 percent to assume the failed bank's deposits, the FDIC said. The FDIC estimates the cost of the Integrity failure to its deposit-insurance fund will be $250 million to $300 million.

    Integrity was ordered by federal and state regulators in May to present a capital-raising plan within 60 days. At the time, the company had been trying without success for at least eight months to raise $40 million after loans to residential and commercial developers were hurt by the collapse of the real estate market. ``Banks must meet certain regulatory minimums to ensure safety and soundness,'' Georgia bank commissioner Rob Braswell said in a telephone interview. ``When those minimums are not able to be met and solvency is in jeopardy, we have no choice but to close the institution and to place it into receivership.''

    Integrity Bancshares, which sold for more than $14 a share in January 2007, closed today at 4 cents in over-the-counter trading. The FDIC insures deposits of up to $100,000 per depositor per bank, and up to $250,000 for some retirement accounts at 8,451 institutions with $13.3 trillion in assets.

    The FDIC this week said 117 banks are classified as ``problem'' in the second quarter, a 30 percent jump from the first quarter. The agency doesn't identify ``problem'' lenders.
    ``More banks will come on the list as credit problems worsen,'' FDIC Chairman Sheila Bair said at an Aug. 26 Washington news conference.
    The credit market turmoil may topple some of the nation's biggest banks, Kenneth Rogoff, former chief economist at the International Monetary Fund, said in Singapore Aug. 19.

    Before today's action, the FDIC had closed 36 banks since October 2000, according to a list at fdic.gov. The U.S. shut 11 banks in 2002, the highest in the period. In 1994 the government had closed a dozen institutions by the end of August.

    U.S. regulators this year also closed Columbian Bank and Trust of Topeka, Kansas, on Aug. 22; First Priority Bank of Bradenton, Florida, on Aug. 1; Reno-based First National Bank of Nevada and Newport Beach, California-based First Heritage Bank in July; Staples, Minnesota-based First Integrity Bank and ANB Financial in Bentonville, Arkansas, in May; Hume Bank in Hume, Missouri, in March; and Douglass National Bank in Kansas City, Missouri, in January.

     
  2. roarin1

    roarin1 Banned MEMBER

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    The conservative media 'spin machine.'

    Since the stock market crash of the early nineteen-eighties, where this country suffered all the ear-marks of a depression on 'paper' (and is in most economic areas---STILL reeling from the effects of crimes like the 'SNL' scandal,) no where in hisstory have bank after bank after bank began to fall like dominoes and flat-out failed, except for the stock market crash of 1929 that resulted in the Great Depression.

    So-called amerikkkans STILL have not awakened to this fact regarding capitalism. The conservative 'spin machine' is in full 'tilt,' and quite effective.

    Such information gives 'new meaning' to phrases like.....watch YOUR money, 'specially when YOU can only watch YOUR money.....go away.

    Sad.
     
  3. MasterDJ

    MasterDJ Well-Known Member MEMBER

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    Those who followed the markets could have predicted this the same way an investor I know predicted this and planned accordingly years ago til this day. Its enlightening when you have the chance to meet people that were right on the button about big events such as this. Some Economists say this is the second great depression and it is only to worsen in the upcoming months. Before all of this "Obama craze" began this is what I feared most. I feared that the Obama would actually win, which is what I want, but I was afraid of what he would be winning. It is my fear that we are settiing him up for failure by passing him an office on the decline. Because when the stories begin to hit the media in a year or two I am sure they will try to spin this into an, "Obamas policies and lack of wisdom caused this event", type of thing! I hope that doesn't happen. It will get to the point where just about everyone will be struggling unless they have taken the time to invest in Gold and Silver. Lastly, it also crazy how Elijah Muhammad predicted this back in 1979 to the tee, LOL! He just gets better with time...you dont have to like the guy but you must admit he was on point with a lot of things!
     
  4. river

    river Watch Her Flow MEMBER

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    A slump in the real estate market? Could this be related to the way they have historically made it easy for whites to buy homes and hard for blacks? Could it be related to the abuses of sub prime loans? Could it be a microcosm of what will happen generally to a country that has built itself up at the expense of others.
     
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