Sun American Bank, Boca Raton, Florida

Sun American Bank, Boca Raton, Florida, became the 23rd FDIC-insured institution to fail in 2010,at an estimated cost to the Deposit Insurance Fund (DIF) will be $103.8 million.

Sun American Bank, Boca Raton, 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 First-Citizens Bank & Trust Company, Raleigh, North Carolina, to assume all of the deposits of Sun American Bank.
The 12 branches of Sun American Bank will reopen on Monday as branches of First-Citizens Bank & Trust Company. Depositors of Sun American Bank will automatically become depositors of First-Citizens Bank & Trust Company. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from First-Citizens Bank & Trust Company that it has completed systems changes to allow other First-Citizens Bank & Trust Company branches to process their accounts as well.

This evening and over the weekend, depositors of Sun American 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 December 31, 2009, Sun American Bank had approximately $535.7 million in total assets and $443.5 million in total deposits. First-Citizens Bank & Trust Company did not pay a premium to acquire the deposits of Sun American Bank. In addition to assuming all of the deposits of the failed bank, First-Citizens Bank & Trust Company agreed to purchase essentially all of the assets.

The FDIC and First-Citizens Bank & Trust Company entered into a loss-share transaction on $433.0 million of Sun American Bank’s assets. First-Citizens Bank & Trust Company 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 who have questions about today’s transaction can call the FDIC toll-free at 1-866-954-9532. 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; and thereafter from 8:00 a.m. to 8:00 p.m., EST.

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

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Are The Banks The New Big Brother?

Steve Dibert

I have been rereading Frank Herbert’s science fiction masterpiece, Children of Dune and I came across this interesting passage from the Bene Gesserit Sisterhood:

“Governments, if they endure, always tend increasingly toward aristocratic forms. No government in history has been known to evade the pattern. And as the aristocracy develops, government tends more and more to act exclusively in the interests of the ruling class – whether that class be hereditary royalty, oligarchs of financial empires, or entrenched bureaucracy.”

For obvious reasons this quote stuck out like Rush Limbaugh at an NAACP meeting and I began to wonder are we, the American people at the mercy of the new financial aristocracy that apparently runs the land of the free and home of the brave?  Where are we going now that we know “Too big to fail” was actually a secret code for “Too big to control”?

The oligarchs that run these financial empires not only exploited the dysfunctional partisanship in Washington but played the American people to pure Machiavellian artistry.

At the beginning no one cared because everyone was making money.  Then while everyone was basking in and distracted by their financial hedonism, Banking Executives got sloppy, became greedy, made some really dumb decisions and made promises they knew they couldn’t keep especially to other banks and foreign governments in order to keep the keep their pockets stuffed with the Benjamins.  They forgot what Uncle Ben Parker once told young Peter Parker after he was bitten by the radioactive spider, “With great power comes great responsibility.”

These banks used their power to create and to enrich themselves with a multi-trillion dollar Ponzi scheme that made Bernie Madoff’s Ponzi scheme look like a kindergarten production of the movie Wall Street.

So when this pyramid scheme…oh, we can’t call it that. Pyramid schemes are illegal.  We’ll call it a Trapezoid Scheme since there is more than one group at the top and Trapezoid Schemes as far as I know are not illegal.   So when this Trapezoid scheme finally began to fall, the U.S. Government was forced to step in and bail these banks out.

Many critics of TARP have griped that the government had no business bailing out these banks based on the theory that in violated the spirit of free enterprise and that social Darwinism dictated someone would come along and pick up the pieces. In the end no matter how long it took everything would be right in the world of free enterprise.  The same people who opposed TARP also supported “Too Big to Control”.

What these critics of TARP fail to realize are several major issues.   The first is, the FDIC did not have enough cash on hand to cover the projected losses of these banks nor did they have the manpower to oversee a FDIC takeover of these banks.  Second, both Treasury and the Federal Reserve were concerned about bank runs and the possibility of a cascade effect to smaller regional and community banks that rely on the five major banks.  Third, there were the geo-political realities of international banking to consider.  Many foreign governments had funds tied to the major U.S. banks.  Many of those like Russia, India, and Pakistan have nuclear weapons.  What would happen if Islamic fundamentalists took control of the government in Pakistan?

Even now, with a different political party in control of congress and the nation being in the worst economic crisis since the Great Depression, the Banking Lobby is still writing legislation and still dictating banking policy in this country.   All this shows how entrenched they have become in the fabric of our lives.  It’s not Big Government we need to fear turning into Big Brother, it’s the Banks.

This article originally appeared on www.bankinghorrorstories.com

Steve Dibert is currently the owner of MFI-Miami, LLC.  A mortgage fraud investigation company that specializes in investigating compliance and mortgage backed securities related issues.

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Mutual Diversified Employees Federal Credit Union of Santa Ana, Calif.

Mutual Diversified Employees Federal Credit Union of Santa Ana, Calif. became the third liquidation of a federally insured credit union this year.

The NCUA on Friday liquidated Mutual Diversified Employees Federal Credit Union of Santa Ana, Calif. and its assets were purchased by SchoolsFirst Federal Credit Union in the same city.

Mutual Diversified Employees FCU had $6 million in assets at the end of December, a 38.2% decline since the end of October. Its delinquent loan ratio was 46% and it had a negative return on assets. It had 748 members.

SchoolsFirst FCU has 8 billion in assets and 433,521 members.

For more information go to the National Credit Union Administration (NUCA) webpage for Mutual Diversified Employees Federal Credit Union.

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Rainier Pacific Bank, Tacoma, WA

Rainier Pacific Bank, Tacoma, Washington, was the 22nd FDIC victim of 2010. The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $95.2 million.

Carson River Community Bank, Carson City, Nevada, was closed today by the Nevada Department of Business and Industry, Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank of Nevada, Reno, Nevada, to assume all of the deposits of Carson River Community Bank.

The sole branch of Carson River Community Bank will reopen on Monday as a branch of Heritage Bank of Nevada. Depositors of Carson River Community Bank will automatically become depositors of Heritage Bank of Nevada. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their former Carson River Community Bank branch until they receive notice from Heritage Bank of Nevada that it has completed systems changes to allow other Heritage Bank of Nevada branches to process their accounts as well.

This evening and over the weekend, depositors of Carson River Community 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 December 31, 2009, Carson River Community Bank had approximately $51.1 million in total assets and $50.0 million in total deposits. Heritage Bank of Nevada did not pay the FDIC a premium to assume all of the deposits of Carson River Community Bank. In addition to assuming all of the deposits, Heritage Bank of Nevada agreed to purchase approximately $38.0 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and Heritage Bank of Nevada entered into a loss-share transaction on $28.5 million of Carson River Community Bank’s assets. Heritage Bank of Nevada 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 who have questions about today’s transaction can call the FDIC toll-free at 1-800-894-6802. The phone number will be operational this evening until 9:00 p.m., Pacific Standard Time (PST); on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from noon to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST.

Please do not hesitate to visit the FDIC webpage for Rainier Pacific Bank.

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Carson River Community Bank, Carson City, NV

Carson River Community Bank was one of two ailing banks who’s lights were put out by the FDIC, making it the 21 victim of the year. The agency estimates that the cost to the Deposit Insurance Fund (DIF) will be $7.9 million.

Carson River Community Bank, Carson City, Nevada, was closed today by the Nevada Department of Business and Industry, Financial Institutions Division, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Heritage Bank of Nevada, Reno, Nevada, to assume all of the deposits of Carson River Community Bank.
The sole branch of Carson River Community Bank will reopen on Monday as a branch of Heritage Bank of Nevada. Depositors of Carson River Community Bank will automatically become depositors of Heritage Bank of Nevada. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their former Carson River Community Bank branch until they receive notice from Heritage Bank of Nevada that it has completed systems changes to allow other Heritage Bank of Nevada branches to process their accounts as well.
This evening and over the weekend, depositors of Carson River Community 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 December 31, 2009, Carson River Community Bank had approximately $51.1 million in total assets and $50.0 million in total deposits. Heritage Bank of Nevada did not pay the FDIC a premium to assume all of the deposits of Carson River Community Bank. In addition to assuming all of the deposits, Heritage Bank of Nevada agreed to purchase approximately $38.0 million of the failed bank’s assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and Heritage Bank of Nevada entered into a loss-share transaction on $28.5 million of Carson River Community Bank’s assets. Heritage Bank of Nevada 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 who have questions about today’s transaction can call the FDIC toll-free at 1-800-894-6802. The phone number will be operational this evening until 9:00 p.m., Pacific Standard Time (PST); on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from noon to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST.

Please do not hesitate to visit the FDIC webpage for Carson River Community Bank.

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Friendship Community Federal Credit Union of Clarksdale, Miss.

Friendship Community Federal Credit Union of Clarksdale, Miss.became the second liquidated federally insured credit union of 2010.

The NCUA liquidated the Friendship Commfor friendship community Federal credit Unionunity Federal Credit Union of Clarksdale, Miss. today and its assets were purchased by Shreveport Federal Credit Union of Shreveport, La.

Friendship Community FCU had $860,142 in assets at the end of December, a 2.8% decline since the end of October. Its delinquent loan ratio was 23.47% and it had a negative return on assets. It had 685 members.

Shreveport FCU has $76 million in assets and 14,500 members.

For more information go to the National Credit Union Administration webpage for Friendship Community Federal Credit Union.

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La Jolla Bank, FSB, La Jolla, California

La Jolla Bank, FSB, La Jolla, California, is the 20th FDIC-insured institution to fail in the nation this year, at a whopping estimated cost of $882.3 million to the Deposit Insurance Fund (DIF).

La Jolla Bank, FSB, La Jolla, California, was closed today by the Office of Thrift Supervision, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with OneWest Bank, FSB, Pasadena, California, to assume all of the deposits of La Jolla Bank, FSB.

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

This evening and over the weekend, depositors of La Jolla Bank, FSB 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 December 31, 2009, La Jolla Bank, FSB had approximately $3.6 billion in total assets and $2.8 billion in total deposits. OneWest Bank, FSB did not pay the FDIC a premium for the deposits of La Jolla Bank, FSB. In addition to assuming all of the deposits of the failed bank, OneWest Bank, FSB agreed to purchase essentially all of the assets.

The FDIC and OneWest Bank, FSB entered into a loss-share transaction on $3.31 billion of La Jolla Bank, FSB’s assets. OneWest Bank, FSB 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 who have questions about today’s transaction can call the FDIC toll-free at 1-800-894-2927. The phone number will be operational this evening until 9:00 p.m., Pacific Standard Time (PST); on Saturday from 9:00 a.m. to 6:00 p.m., PST; on Sunday from noon to 6:00 p.m., PST; and thereafter from 8:00 a.m. to 8:00 p.m., PST.

If you should have any further questions, please do not hesitate to visit the FDIC webpage for La Jolla Bank.

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George Washington Savings Bank, Orland Park, Illinois

George Washington Savings Bank, is the 19th FDIC-insured institution to fail in the nation this year, at an estimated cost of $141.4 million to the Deposit Insurance Fund (DIF).

George Washington Savings Bank, Orland Park, Illinois, was closed today by the Illinois Department of Financial Professional Regulation – Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with FirstMerit Bank, National Association, Akron, Ohio, to assume all of the deposits of George Washington Savings Bank.

The four branches of George Washington Savings Bank will reopen on Saturday as branches of FirstMerit Bank, N.A. Depositors of George Washington Savings Bank will automatically become depositors of FirstMerit Bank, N.A. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branch until they receive notice from FirstMerit Bank, N.A. that it has completed systems changes to allow other FirstMerit Bank, N.A. branches to process their accounts as well.

This evening and over the weekend, depositors of George Washington 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 December 31, 2009, George Washington Savings Bank had approximately $412.8 million in total assets and $397.0 million in total deposits. FirstMerit Bank, N.A. will pay the FDIC a premium of 0.31 percent to assume all of the deposits of George Washington Savings Bank. In addition to assuming all of the deposits of the failed bank, FirstMerit Bank, N.A. agreed to purchase essentially all of the assets.

The FDIC and FirstMerit Bank, N.A. entered into a loss-share transaction on $324.2 million of George Washington Savings Bank’s assets. FirstMerit Bank, N.A. 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 who have questions about today’s transaction can call the FDIC toll-free at 1-800-837-0215. 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; and thereafter from 8:00 a.m. to 8:00 p.m., CST.

If you should have any further questions, please do not hesitate to visit the FDIC webpage for George Washington savings bank.

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La Coste National Bank, La Coste, Texas

La Coste National Bank, La Coste, Texas, becomes the 18 FDIC insured bank shattered by the agency in 2010. the cost to the agencies Insurance Defense Fund (DIF) is estimated to be a relatively modest $3.7 million.

The La Coste National Bank, La Coste, Texas, 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 Community National Bank, Hondo, Texas, to assume all of the deposits of The La Coste National Bank.

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

This evening and over the weekend, depositors of The La Coste National 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 December 31, 2009, The La Coste National Bank had approximately $53.9 million in total assets and $49.3 million in total deposits. Community National Bank will pay the FDIC a premium of 0.51 percent to assume all of the deposits of The La Coste National Bank. In addition to assuming all of the deposits of the failed bank, Community National Bank agreed to purchase essentially all of the assets.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-830-3256. 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; and thereafter from 8:00 a.m. to 8:00 p.m., CST.

If you should have any further questions please do not hesitate to visit the FDIC webpage for La Coste National Bank.

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Marco Community Bank, Marco Island, Florida

Marco Community Bank, Marco Island, Florida, becomes the 17th FDIC insured institution to go belly up in the nation in 2010. The FDIC estimates that a hit to its deposit insurance fund (DIF) well-be $38.1 million.

Marco Community Bank, Marco Island, 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 Mutual of Omaha Bank, Omaha, Nebraska, to assume all of the deposits of Marco Community Bank.

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

This evening and over the weekend, depositors of Marco Community 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 December 31, 2009, Marco Community Bank had approximately $119.6 million in total assets and $117.1 million in total deposits. Mutual of Omaha Bank will pay the FDIC a premium of 1.5 percent to assume all of the deposits of Marco Community Bank. In addition to assuming all of the deposits of the failed bank, Mutual of Omaha Bank agreed to purchase essentially all of the assets.

The FDIC and Mutual of Omaha Bank entered into a loss-share transaction on $104.8 million of Marco Community Bank’s assets. Mutual of Omaha 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 who have questions about today’s transaction can call the FDIC toll-free at 1-800-822-9247. 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; and thereafter from 8:00 a.m. to 8:00 p.m., EST.

If you should have any further questions please do not hesitate to visit the FDIC webpage for Marco Community Bank.

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