Mortgage and Business News » FDIC

FDIC Troubled Bank List: But Which Banks?

Nikki — Wed, 26 Nov 2008 08:49:29 +0000

The Federal Deposit Insurance Corp (FDIC) announced that the number of troubled banks on the FDIC watch list in the third quarter surged almost 50 percent and they now have 171 problem banks.

Highlighting the problems are worsening among the financial institutions controlling US deposits
The FDIC problem list current tally is the highest since the end of 1995, jumping from 117 in the second quarter to 171 in the third. However this is around 2 percent of FDIC-insured institutions that stands at 8,500.

The total assets from problem banks have risen from $78.3 billion to $115.6 billion, so from this information we can tell that the top 20 banks are not on the FDIC troubled bank list.

The FDIC have not made the troubled banks public, however it is still possible for banks that are not on the list to fail, IndyMac Bankcorp and Washington Mutual Inc both failed and were not on the list.

Source: GoogleAP

Homeowners with original IndyMac loans are helped by the FDIC

Nikki — Wed, 20 Aug 2008 21:40:58 +0000

On August 20 The Federal Deposit Insurance Corporation said it would help thousands of distressed homeowners with their loans through the former IndyMac Bank to avoid foreclosures.

This week IndyMac Federal Bank will send 4,000 modification proposals to homeowners with bad IndyMac orignated mortgages, offering them better terms to rehabilitate their loans, and thousands more modification proposals to those in seriously bad debt and default in the coming weeks.

The modification would cap eligible sustainable mortgages permanently at the current Freddie Mac survey rate for conforming mortgages, and will keep payments at a 38 percent housing debt-to-income ratio of principle, interest, taxes and insurance.

In July the FDIC was named conservator of failed IndyMac Bank which was re-named IndyMac Federal Bank.

Source: Bizjournals

FDIC troubled bank list still lower than 1980s and early 1990s

Peter — Mon, 14 Jul 2008 22:19:47 +0000

Back in May there was just 90 institutions that were on the FDIC troubled bank list, this number could grow when the latest readings are read in August, but they will still be lower than they were back in the 1980’s and early 1990’s.

Despite the recent collapse of IndyMac, analysts still maintain that the banking system is still in better shape than it was during the S&L crisis.

CNN Money has said that there won’t be nearly as many bank collapses as there were in the late 1980s and early 1990s. In 1989, 534 institutions failed, this was just before the peak of the savings & loan crisis. In that period over 1,000 institutions had shut up shop.

IndyMac is just the fifth bank to fail this year, so it shows that things are nothing like they were back in the 1980s and early 1990s.

However; one thing that we have to remember, the failure of IndyMac is the largest collapse of an FDIC-insured institution since 1984. The bank had assets of $40 billion and with the current Fannie Mae and Freddie Mac problems; this current period is set to be an expensive one.