EveryJoe » federal regulators

Georgian Bank Shut Down by Feds

Stephen Kersey — Sat, 26 Sep 2009 03:55:21 +0000

Georgian Bank, a bank based in the city of Atlanta, has been shut down by federal regulators. The closure marks the failed bank number 95 in 2009.

The FDIC took over the bank and is expected to lose about $900 million in doing so. Georgian Bank had about $2 billion in assets as of the final week of July.

The five branches of Georgian Bank will be taken over by First Citizens Bank and Trust Co. — a bank based in the state of South Carolina. All five branches will open on Monday under the new name.

Not only will the number of failed banks hit triple figures, many experts think it’s a matter of time before 200 or maybe even 300 banks fail. Many small banks around the nation are barely hanging on as the financial industry continues to struggle. The worry right now is whether or not the FDIC will find enough money to cover all the forthcoming bank failures.

FDIC (Image: Flickr)

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Georgian Bank Shut Down by Feds

Colonial BancGroup Among Five Failed Banks

Stephen Kersey — Sat, 15 Aug 2009 03:52:27 +0000

Another week, another set a failed banks. However, this time there was a big fish in the net. Colonial BancGroup, which had assets of approximately $25 billion, was shut down by federal regulators on Friday — the biggest bank failure in the United States in 2009.

Colonial BancGroup was sold to BB&T, a bank based in North Carolina. All of Colonial BancGroup’s 346 branches will open as BB&T branches on Saturday. Colonial BancGroup had branches in a number of states including Texas, Nevada, Georgia and Florida.

Four other banks were shut down by federal regulators on Friday: Community Bank of Arizona, Community Bank of Nevada, Union Bank and Dwelling House Savings and Loan Association.

Community Bank of Arizona and Union Bank, both of which were based in Arizona, have been taken over by MidFirst Bank — a bank based in Oklahoma City.

PNC Financial Services Group, which is based in Pennsylvania, will take over Dwelling House Savings and Loan Association. Dwelling House was also based in Pennsylvania.

As for the Community Bank of Nevada, the FDIC will open a temporary bank owned by the government and will give depositors about a month to find another bank.

FDIC Seal (Image: Flickr)

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Colonial BancGroup Among Five Failed Banks

Three Banks in Florida, Oregon Collapse

Mark Ellis — Sat, 08 Aug 2009 22:23:44 +0000

Two lenders in Florida and one in Oregon have gone under in what has become a gruesome trend for the financial world. The collapses of these three banks mark have propelled the number of bank closures due to the recession to 72, highlighting the devastating impact of the economic crisis.

Community National Bank and First State Bank, both of which were based in Sarasota, Florida, and Community First Bank, based in Prineville, Oregon, were shut down by federal regulators in a move that will cost the FDIC $185 million. All in all, the banks were in charge of $769 million worth of assets and $662 million worth of deposits.

The recent frenzy of bank closures has created the fastest pace of bank closures by federal regulators in the last 17 years. Most of the banks shut down struggled from unpaid real-estate debt and the mass of closures has forced the FDIC to revive its practice of sharing the losses with potential buyers, a process introduced during the financial crisis of the 1980s.

Image: Flickr

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Three Banks in Florida, Oregon Collapse

FDA Blocks Teva’s Drug Sales

Stephen Kersey — Mon, 03 Aug 2009 20:57:12 +0000

According to a statement released by U.S. federal regulators, Teva Pharmaceuticals will be unable to sell any of its veterinary drugs until it manages to sort out several manufacturing problems. In order to be able to sell the products from its animal health unit once again, Teva will have to win the FDA’s approval after several inspections.

The move came after the FDA found enough manufacturing violations during inspections dating as far back as 2007 to justify closing down Teva’s facilities. After the news broke, Teva’s shares fell to $53 from $53.34, marking a slight fall for the largest American manufacturer of generic animal drugs.

Teva released a statement apologizing for its violations and promising that the pharmaceutical company would quickly fix all of the errors. In order to meet FDA standards once again, Teva will retrain the employees in the affected unit, analyze each of the products that it manufactures, and do its own inspection of its equipment and procedures.

Image: Flickr

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FDA Blocks Teva’s Drug Sales

Four More Banks Shut Down

Stephen Kersey — Sun, 19 Jul 2009 01:35:35 +0000

The United States federal regulators shut down four more banks on Friday — upping the total in 2009 from 53 to 57. All four banks were appointed to the FDIC.

Two of the four banks were located in the state of California. South Dakota and Georgia were the locations of the other two banks.

The two banks in California were Vineyard Bank and Temecula Valley Bank. Of the four banks that were shut down by regulators on Friday, these two were also the two biggest.

In Georgia, the failed bank was First Piedmont Bank. BankFirst was the failed bank located in South Dakota.

First-Citizens Bank and Trust will assume Temecula Valley Bank’s deposits. California Bank & Trust will assume Vineyard Bank’s deposits.

First American Bank and Trust will assume the deposits of First Piedmont Bank, while Beal Bank Nevada entered into a similar deal with the deposits of BankFirst.

Skinny Piggy Bank (Image: Flickr)

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Four More Banks Shut Down

Newmont Mining Fined $500,000

Stephen Kersey — Wed, 08 Jul 2009 03:59:58 +0000

Newmont Mining has been fined in excess of $500,000 by federal regulators due to the death of an employee two years ago. The fine, which came from the Mine Safety and Health Administration, cites safety violations.

In addition to Newmont Mining getting fined, the MSHA also decided to fine four of the company’s supervisors to the total tune of $60,000.

The death occurred in an underground Nevada gold mine called Midas Mine. Thomas Daniel Shaw, the miner who died, reportedly was operating a loader when he dropped into a sinkhole and fell to his death.

After the fall, it took nearly two weeks to recover Shaw’s body. About 5,000 pounds of material had to be removed to reach his body.

“Management engaged in aggravated conduct constituting more than ordinary negligence,” said a MSHA report, “in that it was aware of previous subsidence.”

Headquartered in Denver, Colorado, Newmont Mining has approximately 15,000 employees. They have active miners working in a number of countries including the United States, Australia, New Zealand and Indonesia.

Newmont Mining Gold Mine (Image: Flickr)

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Newmont Mining Fined $500,000

Seven Banks Shut Down by Regulators

Stephen Kersey — Fri, 03 Jul 2009 03:49:07 +0000

Heading into Thursday, a total of 45 banks had been shut down in 2009 by federal regulators. On Thursday, seven more banks failed — pushing the total on the year up to 52.

Six of the seven banks that failed were in the state of Illinois. The other bank was in Texas.

The failed bank in Texas was Millennium State Bank out of Dallas. The lone branch will be turned into a State Bank of Texas branch.

The five banks out of Illinois were John Warner Bank, First State Bank of Winchester, Rock River Bank, Elizabeth State Bank, First National Bank of Danville, Founders Bank.

Combined, the FDIC estimates that these failed banks will cost slightly more than $314 million. On the year, the FDIC has had to pay out more than $12 billion due to bank failures.

In upcoming months, it is safe to expect at least a few failed banks each month from each corner of the country.

Banks are running out of money (Image: Flickr)

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Seven Banks Shut Down by Regulators