bank failure

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In Silicon Valley Bank Fail, the Fed's 'Mea Culpa' (Sort Of)

US central banking system blames lax oversight, weakened regulations for bank's collapse

(Newser) - The Federal Reserve blamed last month's collapse of Silicon Valley Bank on poor management, watered-down regulations, and lax oversight by its own staffers, adding that the industry needs stricter policing on multiple fronts to prevent future bank failures. The Fed was highly critical of its own role in the...

Silicon Valley Bank Has a Buyer
Silicon Valley Bank Has a Buyer
Mar 27, 2023 1:26 AM CDT

Silicon Valley Bank Has a Buyer

First Citizens Bank will acquire large chunk of failed SVB

(Newser) - The Federal Deposit Insurance Corp. announced Sunday that a deal has been made for the acquisition of the collapsed Silicon Valley Bank. First Citizens Bank will buy SVB's deposits and loans; CNBC reports First Citizens is purchasing around $72 billion of SVB's assets at a discount of $16....

Failed Signature Bank Finds a Buyer
Failed Signature Bank
Finds a Buyer
Mar 20, 2023 2:40 AM CDT

Failed Signature Bank Finds a Buyer

New York Community Bank will buy $38.4B in bank's assets

(Newser) - New York Community Bank has agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal, the Federal Deposit Insurance Corp. said late Sunday. The 40 branches of Signature Bank will become Flagstar Bank, starting Monday, the AP reports. Flagstar is one of New...

Sharon Stone Makes Shocking Financial Admission

At cancer awareness event in Beverly Hills, actor says she lost half her fortune to 'this banking thing'

(Newser) - Even the rich and famous aren't necessarily immune to major fails in the banking industry. Sharon Stone put herself forward as an example of that on Thursday, when she spoke at a star-studded California cancer awareness event and made a shocking claim about her finances. Per Yahoo Entertainment , the...

Credit Suisse Just Lost a Quarter of Its Value
Another Bank Just
Took a Huge Hit
Mar 15, 2023 10:40 AM CDT

Another Bank Just Took a Huge Hit

Credit Suisse shares lost a quarter of their value after biggest shareholder said no more money

(Newser) - Battered shares of Credit Suisse lost more than one-quarter of their value Wednesday, hitting a record low after its biggest shareholder—the Saudi National Bank—said it would not inject more money into the Swiss bank beset by problems long before the failure of two US lenders. The turmoil prompted...

A Bank Collapsed. Next: Moves to Avoid a 'Contagion'

Media outlets detail Biden administration's frenzied weekend to try to keep banking crisis at bay

(Newser) - The collapse on Friday of Silicon Valley Bank , which was bookended by the shuttering of two other financial institutions, led to wider fears among Biden administration officials: the possibility of a "contagion" that could lead to a domino effect of failure among America's banks, as one White House...

Number of 2023 Bank Failures Now Up to 3
Bank Depositors Will Get
Their Money Back
the rundown
Mar 13, 2023 5:38 AM CDT

Bank Depositors Will Get Their Money Back

US takes action to ease pain of SVB collapse, as another big bank fails

(Newser) - The government has taken what the AP calls "extraordinary steps" to avert a potential banking crisis in the wake of Silicon Valley Bank's failure , with the Treasury Department, Federal Reserve, and FDIC issuing a joint statement Sunday assuring SVB clients they would all be protected and that depositors,...

Yellen: No, We Won't Bail Out Silicon Valley Bank
Yellen: No, We Won't
Bail Out Silicon Valley Bank
the rundown
Mar 12, 2023 10:45 AM CDT

Yellen: No, We Won't Bail Out Silicon Valley Bank

'Whole generation' of tech startups face potential collapse

(Newser) - The fallout from the Friday failure of Silicon Valley Bank —the 16th-largest bank in the nation—continues to spread far and wide in the financial world. A look at coverage:
  • Uninsured: The FDIC insures deposits up to $250,000, but many tech startups and other businesses had far more
...

Largest Bank Collapse Since 2008 Just Went Down

FDIC shutters Silicon Valley Bank, seizes its assets

(Newser) - The Federal Deposit Insurance Corporation seized the assets of Silicon Valley Bank on Friday, marking the largest bank failure since Washington Mutual during the height of the 2008 financial crisis. The FDIC ordered the closure of SVB and immediately took possession of all deposits at the bank. The bank had...

How Iceland Got Its Groove Back

Letting its banks perish worked out for island nation

(Newser) - Don't look now, but Iceland's economy is growing. Tourism is up, the standard of living remains high, and unemployment is down to 7%. "For a country whose entire financial system collapsed, Iceland is doing remarkably well," the IMF's mission chief there tells the Washington Post...

Bank Failures Far From Over
 Bank Failures Far From Over 
Jan 3, 2012 6:51 AM CST

Bank Failures Far From Over

Failures down in 2011, but weak banks are taking longer to recover or die

(Newser) - Bank failures were down significantly in 2011, but that doesn't mean banks are getting healthier—it just means sick ones are taking longer to die, the Wall Street Journal finds. Some 92 banks failed last year, down from 157 in 2010. But many of 2011's casualties were in...

FDIC Launches 50 Criminal Inquiries of Failed Banks

But it won't name names yet

(Newser) - The FDIC has launched criminal investigations targeting around 50 executives, directors, and employees from banks that failed during the financial crisis. Regulators won’t say which banks or executives are under investigation yet, but did tell the Wall Street Journal that banks of all sizes from across the country are...

FDIC Closes Bank No. 28: NYC's Park Avenue Bank
FDIC Closes Bank No. 28: NYC's Park Avenue Bank
2010 BODY COUNT
Mar 12, 2010 4:48 PM CST

FDIC Closes Bank No. 28: NYC's Park Avenue Bank

Latest to fail had about $1B on the books

(Newser) - Federal regulators shut down Park Avenue Bank in New York today, marking the 28th failure this year of a federally insured bank. The Federal Deposit Insurance Corp. was appointed receiver of Park Avenue Bank. It had $520.1 million in assets and $494.5 million in deposits as of Dec....

FDIC Seizes 4 More Banks
FDIC Seizes 4 More Banks 
Mar 6, 2010 7:12 AM CST

FDIC Seizes 4 More Banks

Tally hits 26 this year; pace of closures expected to increase in coming months

(Newser) - Regulators yesterday shuttered banks in Florida, Illinois, Maryland, and Utah, boosting to 26 the number of US bank failures so far this year following the 140 brought down in 2009 by mounting loan defaults. The pace of bank seizures this year is likely to accelerate , FDIC officials have said, as...

Lending Falls at Fastest Rate Since 1942

Boatload of bank failures likely in 2010

(Newser) - Banks tightened credit last year at what the Wall Street Journal calls an “epic pace,” recording their biggest full-year decline in loans outstanding in 67 years. The figure comes from a new FDIC report that paints the picture of a banking industry that, apart from a few top-tier...

Geithner: Goldman Woulda Failed Sans Bailout

Execs dreaming if they think they wouldn't have failed

(Newser) - Goldman Sachs fatcats were musing this week about how they might have been fine without a federal bailout, but Tim Geithner is having none of it: “None of them would have survived,” he tells Bloomberg , without federal intervention. “The entire US financial system and all the major...

Danger Signs Ignored at Failed Banks

Regulators knew loans were toxic but didn't act

(Newser) - "Post-mortems" on banks that failed during the financial crisis are exposing serious misjudgment by state and federal regulators. Inspectors-general are finding at bank after bank that regulators were aware that risky and potentially toxic loans were being made while the economy was booming, but failed to take action, the...

Sorry, FDIC Can't Guarantee Interest on That CD

When selling failed banks, Feds allow buyers to slash expected payout

(Newser) - There’s a little-publicized part of your bank deposit the FDIC doesn’t insure, and it’s driving scrupulous savers up the wall. The logic is simple enough: When the FDIC takes over a failed bank and resells its assets, it allows buyers to alter interest rates, particularly on CDs....

As Failures Mount, FDIC Asks Banks to Prepay

Regulator wants cash upfront through 2013 to avoid emergency credit line

(Newser) - The FDIC is set to ask banks to prepay three years of fees to replenish its coffers after a wave of bank failures, estimated to cost as much as $100 billion. Banks would be asked to prepay $45 billion of their quarterly assessments, but they wouldn't have to report the...

FDIC May Borrow Billions From Banks
FDIC May Borrow Billions From Banks
Sep 22, 2009 6:37 AM CDT

FDIC May Borrow Billions From Banks

Tapped-out deposit insurance fund mulls reverse bailout

(Newser) - After a year of government bailing out the banks, now the banks may bail out the government. Regulators are considering a plan for the FDIC, which protects bank depositors, to borrow billions from healthy banks, enabling the fund to refresh its accounts after a wave of bank failures. Banks and...

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