BankEast, Knoxville, TN

BankEast, Knoxville, TN, is the seventh FDIC-insured institution to fail in the nation this year. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $75.6 million.

BankEast, Knoxville, Tennessee, was closed today by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with U.S. Bank National Association, Cincinnati, Ohio, to assume all of the deposits of BankEast.

The ten branches of BankEast will reopen on Monday as branches of U.S. Bank National Association. Depositors of BankEast will automatically become depositors of U.S. Bank National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of BankEast should continue to use their existing branch until they receive notice from U.S. Bank National Association that it has completed systems changes to allow other U.S. Bank National Association branches to process their accounts as well.

This evening and over the weekend, depositors of BankEast can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2011, BankEast had approximately $272.6 million in total assets and $268.8 million in total deposits. In addition to assuming all of the deposits of the failed bank, U.S. Bank National Association agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-517-1839. The phone number will be operational this evening until 9:00 p.m., Eastern Standard Time (EST); on Saturday from 9:00 a.m. to 6:00 p.m., EST; on Sunday from noon to 6:00 p.m., EST; on Monday from 8 a.m. to 8 p.m., EST; and thereafter from 9:00 a.m. to 5:00 p.m., EST

If you should have any further questions please do not hesitate to visit the FDIC web page for BankEast, Knoxville, TN.

Posted in FDIC FAILED BANKS | No Comments »

Patriot Bank Minnesota, Forest Lake, Minnesota

Patriot Bank Minnesota, Forest Lake, Minnesota, is the sixth FDIC-insured institution to fail in the nation in 2012. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $32.6 million.

Patriot Bank Minnesota, Forest Lake, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Resource Bank, Savage, Minnesota, to assume all of the deposits of Patriot Bank Minnesota.

The three branches of Patriot Bank Minnesota will reopen on Saturday as branches of First Resource Bank. Depositors of Patriot Bank Minnesota will automatically become depositors of First Resource Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Patriot Bank Minnesota should continue to use their existing branch until they receive notice from First Resource Bank that it has completed systems changes to allow other First Resource Bank branches to process their accounts as well.

This evening and over the weekend, depositors of Patriot Bank Minnesota can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2011, Patriot Bank Minnesota had approximately $111.3 million in total assets and $108.3 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Resource Bank agreed to purchase essentially all of the assets.

The FDIC and First Resource Bank entered into a loss-share transaction on $79.4 million of Patriot Bank Minnesota’s assets. First Resource Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-450-5417. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; on Monday from 8 a.m. to 8 p.m., CST; and thereafter from 9:00 a.m. to 5:00 p.m., CST.

If you should have any further questions please do not hesitate to visit the FDIC web page for Patriot Bank Minnesota.

Posted in FDIC FAILED BANKS | No Comments »

Tennessee Commerce Bank, Franklin, TN

Tennessee Commerce Bank, Franklin, Tennessee, is the fifth FDIC-insured institution to fail in the nation this year. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $416.8 million.

Tennessee Commerce Bank, Franklin, Tennessee, was closed today by the Tennessee Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Republic Bank & Trust Company, Louisville, Kentucky, to assume all of the deposits of Tennessee Commerce Bank.

The sole branch of Tennessee Commerce Bank will reopen on Monday as a branch of Republic Bank & Trust Company. Depositors of Tennessee Commerce Bank will automatically become depositors of Republic Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Tennessee Commerce Bank should continue to use their existing branch until they receive notice from Republic Bank & Trust Company that it has completed systems changes to allow other Republic Bank & Trust Company branches to process their accounts as well.

This evening and over the weekend, depositors of Tennessee Commerce Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2011, Tennessee Commerce Bank had approximately $1.185 billion in total assets and $1.156 billion in total deposits. In addition to assuming all of the deposits of the failed bank, Republic Bank & Trust Company agreed to purchase approximately $203.9 million of the failed bank’s assets. The FDIC will retain most of the assets for later disposition.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-450-5668. The phone number will be operational this evening until 9:00 p.m., Central Standard Time (CST); on Saturday from 9:00 a.m. to 6:00 p.m., CST; on Sunday from noon to 6:00 p.m., CST; on Monday from 8 a.m. to 8 p.m., CST; and thereafter from 9:00 a.m. to 5:00 p.m., CST.

If you should have any further questions please do not hesitate to visit the FDIC web page for Tennessee Commerce Bank.

Posted in FDIC FAILED BANKS | No Comments »

First Guaranty Bank and Trust Company of Jacksonville, Jacksonville, Florida

First Guaranty Bank and Trust Company of Jacksonville, Jacksonville, Florida, is the fourth FDIC-insured institution to fail in the nation this year. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $82.0 million.

First Guaranty Bank and Trust Company of Jacksonville, Jacksonville, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all of the deposits of First Guaranty Bank and Trust Company of Jacksonville.

The eight branches of First Guaranty Bank and Trust Company of Jacksonville will reopen on Monday as branches of CenterState Bank of Florida, National Association. Depositors of First Guaranty Bank and Trust Company of Jacksonville will automatically become depositors of CenterState Bank of Florida, National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of First Guaranty Bank and Trust Company of Jacksonville should continue to use their existing branch until they receive notice from CenterState Bank of Florida, National Association that it has completed systems changes to allow other CenterState Bank of Florida, National Association branches to process their accounts as well.

This evening and over the weekend, depositors of First Guaranty Bank and Trust Company of Jacksonville can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2011, First Guaranty Bank and Trust Company of Jacksonville had approximately $377.9 million in total assets and $349.5 million in total deposits. In addition to assuming all of the deposits of the failed bank, CenterState Bank of Florida, National Association agreed to purchase essentially all of the assets.

The FDIC and CenterState Bank of Florida, National Association entered into a loss-share transaction on $292.9 million of First Guaranty Bank and Trust Company of Jacksonville’s assets. CenterState Bank of Florida, National Association will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-508-8289. The phone number will be operational this evening until 9:00 p.m., Eastern Standard Time (EST); on Saturday from 9:00 a.m. to 6:00 p.m., EST; on Sunday from noon to 6:00 p.m., EST; on Monday from 8 a.m. to 8 p.m., EST; and thereafter from 9:00 a.m. to 5:00 p.m., EST.

If you should have any further questions please do not hesitate to visit the FDIC web page for First Guaranty Bank and Trust Company.

Posted in FDIC FAILED BANKS | No Comments »

A Different Kind Of Bank Scandal

Contributed by Retired Attorney Joe Zingher , Chicago, IL

The banking industry has a problem that they’ve been keeping covered up for a long time and it’s got nothing to do with mortgages but everything to do with Natasha Cleary and her two small children.

Every so often, someone is forced to give up their ATM card and PIN or forced to make a withdrawal, then executed and the body hidden when the killer realizes there’s more money in the account. (Hiding the body prevents the card from being cancelled immediately. Take a moment to check Google News for “ATM” and “murder” and see what you get.) As bad as those stories are, it isn’t enough to make the banking industry change things. They just keep right on rolling along because the murder is forgotten the next day and it’s business as usual.

The police have repeatedly called for the crime trend to be tracked. That way, they could connect Murder A to Murder B which would lead to an arrest before Murder C occurs. In 1990 the Chicago PD recommended it. In 1994 the city council passed Title 4, Chap 4, Section 305-60 which would have had the city tracking the problem. But, in 1996, the General Assembly voided all home rule statutes on ATM safety and the city stopped tracking the problem. In 1999, an Office of Banks and Real Estate report recommended tracking the problem. Nothing was done about it. In 2005, House Bill 4155 was proposed that would make a forced withdrawal a distinct felony and the police would automatically be tracking the problem had it passed. It had almost 10% of the entire general assembly signed on as co-sponsors, from both parties. It was blocked in committee and no further action was taken until 2009 when the same bill was reintroduced as HB1963, and again, it died in committee.

The cops told them we needed the law to capture murderers and our legislature looked the other way. Both times, the banking lobby told the legislature to shut up and mind their own business. Why would they do such a thing? Why would they deliberately blindfold the police when they could be protecting their customers and society generally? Well, as things stand now, an ATM connected robbery is lumped in with all other robberies and disappears amongst a couple hundred thousand other robberies each year. Out of sight and out of mind. If there were a specific crime code section, any statistician could just type in the number and pull up all the reported ATM crimes.

Here’s where things take a turn. Police software has finally caught up with the rest of society. The Chicago PD can now do a simple word search through their files for “ATM” and overlay crime codes for murder, abduction, rape, robbery, assault, missing persons etc and find all violent crimes involving ATMs. They can even back track through their records thanks to “ICLEAR” and several other systems. But, they won’t. According to the Chicago PD, they are not legally required to do so by the Illinois Freedom of Information Act. The Illinois State Police could do it also for the entire state, but they too claim they don’t have to. Governor Quinn’s office doesn’t want to get involved and neither does Attorney General Madigan’s. (That’s the problem, people don’t want to get involved in their communities anymore. What’s happened to this country?)

Fortunately, there are other sources of information and other interpretations of the FOIA requirements. Of 120 murders that occurred in Rockford from January 1, 2006 and November 3, 2011, 10 of them involved an ATM in some fashion. Like Natasha Cleary and her two children, ages 12 and 2. (The police know there was a home invasion, a triple homicide and a fire was set to destroy evidence. The last clue in the case was a strange man using Natasha’s ATM card to make a withdrawal. No arrest was made, so Natasha and her two children were victims C, D and E. Or Wilber Harnden, who was carjacked and beaten to death for his ATM card and PIN. The Clearys’ killer has not been caught. He’ll definitely do it again.) The Rockford data is the best there is available on the problem. Extrapolating statewide 10 murders out of 120 works out to 59 murders across Illinois in 2010 and 36 murders in Chicago that same year. Nationwide, over 1,200 dead, not counting the people who were attacked in the mere hope they had an ATM card but didn’t. Worse yet, the people who are misclassified as “missing persons” could double that count.

So who’s responsible for this? A: Everyone who doesn’t care. (See above.) The police tried for a long time to fix this, and the banking lobby mugged them. Now Quinn and Madigan are sitting on the data. That’s right. They are withholding it from the public.

From the Chicago Daily Law Bulletin’s blog:

http://h20cooler.wordpress.com/2012/01/11/the-empty-building-hypothetical-redux/

and Rock River Times:

http://rockrivertimes.com/2011/11/30/guest-column-forced-atm-withdrawal-a-distinct-felony/

Posted in BREAKING NEWS! | No Comments »

American Eagle Savings Bank, Boothwyn, PA

American Eagle Savings Bank, Boothwyn, PA, becomes the third bank of 2012 should be shattered by the FDIC. The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.2 million.

American Eagle Savings Bank, Boothwyn, Pennsylvania, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Capital Bank, National Association, Rockville, Maryland, to assume all of the deposits of American Eagle Savings Bank.

The sole branch of American Eagle Savings Bank will reopen on Saturday as a branch of Capital Bank, National Association. Depositors of American Eagle Savings Bank will automatically become depositors of Capital Bank, National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of American Eagle Savings Bank should continue to use their existing branch until they receive notice from Capital Bank, National Association that it has completed systems changes to allow other Capital Bank, National Association branches to process their accounts as well.

This evening and over the weekend, depositors of American Eagle Savings Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2011, American Eagle Savings Bank had approximately $19.6 million in total assets and $17.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, Capital Bank, National Association agreed to purchase essentially all of the assets.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-355-0814. The phone number will be operational this evening until 9:00 p.m., Eastern Standard Time (EST); on Saturday from 9:00 a.m. to 6:00 p.m., EST; on Sunday from noon to 6:00 p.m., EST; on Monday from 8 a.m. to 8 p.m., EST; and thereafter from 9:00 a.m. to 5:00 p.m., EST.

If you should have any questions please do not hesitate to visit the FDIC webpage for American Eagle Savings Bank.

Posted in FDIC FAILED BANKS | No Comments »

The First State Bank, Stockbridge, GA

The First State Bank, Stockbridge, GA, is the second FDIC-insured institution to fail in the nation this year. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $216.2 million.

The First State Bank, Stockbridge, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Hamilton State Bank, Hoschton, Georgia, to assume all of the deposits of The First State Bank.

The seven branches of The First State Bank will reopen during their normal business hours beginning Saturday as branches of Hamilton State Bank. Depositors of The First State Bank will automatically become depositors of Hamilton State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of The First State Bank should continue to use their existing branch until they receive notice from Hamilton State Bank that it has completed systems changes to allow other Hamilton State Bank branches to process their accounts as well.

This evening and over the weekend, depositors of The First State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2011, The First State Bank had approximately $536.9 million in total assets and $527.5 million in total deposits. Hamilton State Bank will pay the FDIC a premium of 0.50 percent to assume all of the deposits of The First State Bank. In addition to assuming all of the deposits of the failed bank, Hamilton State Bank agreed to purchase essentially all of the assets.

The FDIC and Hamilton State Bank entered into a loss-share transaction on $419.5 million of The First State Bank’s assets. Hamilton State Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit:http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-405-8251. The phone number will be operational this evening until 9:00 p.m., Eastern Standard Time (EST); on Saturday from 9:00 a.m. to 6:00 p.m., EST; on Sunday from noon to 6:00 p.m., EST; on Monday from 8 a.m. to 8 p.m., EST; and thereafter from 9:00 a.m. to 5:00 p.m., EST.

If you should have any further questions please do not hesitate to visit the FDIC webpage for The First State Bank.

Posted in FDIC FAILED BANKS | No Comments »

Central Florida State Bank, Belleview, FL

Central Florida State Bank, Belleview, FL, has the dubious distinction of being the first bank in the nation to fail in 2012. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24.4 million.

Central Florida State Bank, Belleview, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with CenterState Bank of Florida, National Association, Winter Haven, Florida, to assume all of the deposits of Central Florida State Bank.

The four branches of Central Florida State Bank will reopen on Monday as branches of CenterState Bank of Florida, National Association. Depositors of Central Florida State Bank will automatically become depositors of CenterState Bank of Florida, National Association. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage up to applicable limits. Customers of Central Florida State Bank should continue to use their existing branch until they receive notice from CenterState Bank of Florida, National Association that it has completed systems changes to allow other CenterState Bank of Florida, National Association branches to process their accounts as well.

This evening and over the weekend, depositors of Central Florida State Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of September 30, 2011, Central Florida State Bank had approximately $79.1 million in total assets and $77.7 million in total deposits. In addition to assuming all of the deposits of the failed bank, CenterState Bank of Florida, National Association agreed to purchase essentially all of the assets.

The FDIC and CenterState Bank of Florida, National Association entered into a loss-share transaction on $53.6 million of Central Florida State Bank’s assets. CenterState Bank of Florida, National Association will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers with questions about today’s transaction should call the FDIC toll-free at 1-800-405-8028. The phone number will be operational this evening until 9:00 p.m., Eastern Standard Time (EST); on Saturday from 9:00 a.m. to 6:00 p.m., EST; on Sunday from noon to 6:00 p.m., EST; on Monday from 8 a.m. to 8 p.m., EST; and thereafter from 9:00 a.m. to 5:00 p.m., EST. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/cfsb.html.

If you should have any further questions please do not hesitate to visit the FDIC webpage for Central Florida State Bank.

Posted in FDIC FAILED BANKS | No Comments »

People for People CDCU, Philadelphia, Pennsylvania

People for People CDCU, Philadelphia, Pennsylvania, has the dubious distinction of being the first credit union of the new year to be placed into conservatorship by the National Credit Union Administration (NCUA).

The National Credit Union Administration (NCUA) today assumed control of service and operations at People for People Community Development Credit Union (CDCU), a state-chartered, federally insured credit union, in Philadelphia. While continuing normal member services, NCUA will work to resolve issues affecting the institution’s safety and soundness.

Deposits at People for People CDCU remain federally protected. Administered by NCUA, the National Credit Union Share Insurance Fund (NCUSIF) continues to insure individual accounts at People for People CDCU up to $250,000. The NCUSIF, like the FDIC’s Deposit Insurance Fund, has the backing of the full faith and credit of the U.S. Government.

Service to People for People CDCU’s 1,561 members will continue uninterrupted. Members can continue to conduct normal financial transactions—deposit and access funds, make loan payments, and use shares. People for People CDCU serves an underserved 14.3 square mile area of north Philadelphia. The credit union reported assets of $1.1 million as of Sept. 30, 2011.

The decision to conserve a credit union enables the institution to continue regular operations with expert management in place, correcting previous service and operational weaknesses. During conservatorship, members may therefore continue to conduct business at the credit union.

The Federal Credit Union Act authorizes the NCUA Board to appoint itself as conservator when necessary to conserve the assets of a federally insured credit union, protect members’ interests, or protect the NCUSIF. The Pennsylvania Department of Banking, which chartered People for People CDCU, concurred with the conservatorship decision. People for People CDCU is the first federally insured credit union placed into conservatorship during 2012.

Members who have questions about the conservatorship may review the People for People CDCU Frequently Asked Questions document attached to this release and found at http://www.ncua.gov/News/Pages/AllNewsSummary.aspx.​

Posted in CREDIT UNION CONSERVATORSHIPS | No Comments »

Birmingham Financial Federal Credit Union (BFFCU) of Birmingham, Alabama

Birmingham Financial Federal Credit Union (BFFCU) of Birmingham, Alabama, was the 15ht credit union to be liquidated by the National Credit Union Administration (NCUA) this year.

The National Credit Union Administration (NCUA) liquidated Birmingham Financial Federal Credit Union (BFFCU) of Birmingham, Alabama today. ēCO Credit Union of Birmingham, Alabama immediately assumed BFFCU’s members, assets, loans and debt.

The accounts of the new ēCO Credit Union members remain federally insured by the National Credit Union Share Insurance Fund up to $250,000. The new ēCO Credit Union members will also experience no interruption in services. ēCO is a federally insured state-chartered credit union with $113 million in assets and 13,616 members.

NCUA made the decision to liquidate BFFCU and discontinue its operations after determining the credit union was insolvent and has no prospect for restoring viable operations on its own. At the time of liquidation and subsequent purchase by ēCO Credit Union, the credit union served 429 members and had deposits of approximately $1.2 million.

Chartered in 1956, BFFCU served Employees of the Birmingham Housing Authority and Birmingham Health Care, Incorporated who worked in Birmingham, Alabama; spouses of persons who died while within the field of membership; persons retired as pensioners or annuitants from the above employment; and employees of the credit union and members of their immediate families and organizations of such persons.

BFFCU is the 15th federally insured credit union liquidated in 2011.

Posted in CREDIT UNION FAILURES | No Comments »