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Nearly every man who develops an idea works it up to the point where it looks impossible, and then he gets discouraged. That's not the place to become discouraged.
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Tag Archives: FDIC
FDIC proposes exemption for mortgage securities
Federal regulators are proposing to exempt certain mortgages from new rules aimed at getting banks to take on more risk when package and sell mortgage investments.
The Federal Deposit Insurance Corp. on Tuesday, March 29, and the Federal Reserve a day earlier voted to advance the exemption from rules required under the new financial regulatory law. Under the rules, banks must hold at least 5 percent of the mortgage securities on their books. Read More
New FDIC rules require banks to share some risk
Banks will have to share in the risk when they sell investments of the kind that rocked the financial system in 2008 under rules adopted Monday, September 27.
The Federal Deposit Insurance Corp. is requiring banks hold at least 5 percent of the securities on their books . . . read more Read More
Bubble Bonds
One investment “rule of thumb” that has traditionally developed is smaller investors are usually late to the game…and thus expose themselves to higher levels of risk when a market bubble leaks, bleeds, or bursts. Such a time could easily be approaching in regard to the purchase or continuing ownership of bonds . . . read more Read More
SEC seeks tighter rules on asset-backed securities
Federal regulators proposed new, stricter rules Wednesday for asset-backed securities, the bundles of loans that helped spark the market’s collapse in 2008 and nearly brought down the financial system.
The Securities and Exchange Commission voted 5-0 to propose that Wall Street firms that package and sell asset-backed securities be required in most cases to hold at least 5 percent of the packaged loans — mortgages, credit cards, auto loans — on their own books. . . . read more Read More
FDIC Centennial Bank Press Release
FDIC Approves the Payout of the Insured Deposits of Centennial Bank, Ogden, Utah
The Federal Deposit Insurance Corporation (FDIC) approved the payout of the insured deposits of Centennial Bank, Ogden, Utah. The bank was closed March 5, 2010 by the Utah Department of Financial Institutions, which appointed the FDIC as receiver.
The FDIC entered into an agreement with Zions First National Bank, Salt Lake City, Utah, to accept the failed bank’s direct deposits from the federal government, such as Social Security and Veterans’ payments . . . read more Read More
NSB to Assist with Resolution of Bank
Nevada State Bank announced 14 August 2009 that it will assist the Federal Deposit Insurance Corporation (FDIC) by acting as Payout Agent in the resolution of Community Bank of Nevada, based in Las Vegas Read More
Rethinking: FDIC Insurance
While benefits of FDIC insurance can be debated, especially in this economic climate, insurance on certificates of deposit (CD) and bank accounts provides needed relief to the individual investor. Created in 1933 in response to the bank losses suffered during the Great Depression, FDIC insurance guarantees individuals’ bank deposits, currently up to $250,000 for each deposit in a single bank. Today, an individual can use the insurance to buy a CD knowing that their money is protected up to $250,000 until December 2013.
In addition to bank deposits, FDIC insurance carries over to some of the more conservative investment options as well. Read More
IRAs as Building Blocks—Retirement: 2 of 6
In Part One of this series, Zions Bank Senior Vice President Paul Hansen offered an overview of some key considerations when planning for retirement. In Part Two, Hansen reviews IRAs, the building blocks of a retirement plan.
“After some Zions Bank clients expressed concerns about keeping IRAs open, I realized there was confusion out there,” Hansen says. “An IRA, or Individual Retirement Account, is a vehicle for saving. It’s not the investment itself. IRAs can be used to invest in stocks, bonds, mutual funds, Certificates of Deposit, money market accounts and other investment vehicles such as real estate. When investing in an IRA through a bank, clients can put their money in CDs and money market accounts covered by FDIC insurance for up to $250K.” Read More
NSB Acquires Great Basin Bank of Nevada
Nevada State Bank officials announced April 17, 2009 that the bank has agreed, in a whole bank transaction, to acquire the banking operations of Great Basin Bank of Nevada in a transaction facilitated by the Federal Deposit Insurance Corporation (FDIC).
Branches previously owned and operated by Great Basin Bank of Nevada, headquartered in Elko, Nev., will reopen on Monday morning as branches of Nevada State Bank, Nevada’s oldest state-chartered bank. All Great Basin clients will automatically become clients of Nevada State Bank, said Dallas Haun, president and chief executive officer of Nevada State Bank. Read More
2008 Review Part 4
Housing, poses enormous risk to the U.S. economy through its impact on financial markets, financial institution solvency and consumer confidence and spending. Key will be what happens to housing prices and the extent to which falling prices affect expected losses on mortgages and other linked financial instruments and the extent to which declining wealth affects consumer spending. Prospects are decidedly negative on all fronts as housing price declines continue unabated.
The linkages between housing wealth, price changes and consumer spending are imprecise and have been hotly debated. As the evidence comes in the debate is being resolved. Unfortunately, it appears increasingly that the resolution is in the direction of those who believe that housing had a substantial impact in stimulating consumer spending during the bubble phase and will have a commensurate negative impact now that the bubble is unwinding. Read More
Interesting Times
To say that the current economic times are challenging might seem like an understatement. With the unprecedented events in the market over the past several months, people everywhere are concerned about protecting and preserving their money. While this uncertainty can leave all of us feeling uneasy, it can also bring forward the need for all of us to be proactive about our personal finances and manage our money with care.
Since early in 2008, the President’s Advisory Council on Financial Literacy has been working to develop policies and programs to promote financial literacy. Their goal is to provide substantive guidance and resources that can help people make smart financial choices during both good times and bad. Read More
Zions Bancorp Earnings
Zions Bancorporation (Nasdaq: ZION) (“Zions” or “the Company”) today reported a fourth quarter loss from core banking operations of $0.32 per diluted common share, excluding noncash charges from goodwill impairment of $2.97 per diluted share and impairment and valuation losses on securities of $1.07 per diluted share. Including these charges, the fourth quarter net loss applicable to common shareholders was $498.1 million, or $4.36 per diluted share. The Company also built its reserve for loan losses by $105.5 million in excess of actual net loan charge-offs. Read More
2008 Review Part 3
The revised estimate of Q3 GDP growth was -0.5%. This figure will be revised once more. The final number will be reported in the coming week and is expected to be revised down to between -0.6% and -0.9%.
Real consumer spending declined at an annual rate of 3.7% in the third quarter(likely to be revised down to -4.0%), the first negative quarter since 1991 and the worst negative quarter since the second quarter of 1980. Unfortunately, based on the severe decline of 4.7% in nominal retail sales from September through November, consumer spending is likely to fall further in the fourth quarter, which would make the current recession comparable in ugliness to the 1973-75 recession. Read More
2008 Review Part 2
Table 1 shows the range of opinion that prevailed at the beginning of 2008 and the year-to-date results. Actual results through the October-November timeframe reflect a severe and troublesome deterioration in the performance of the U.S. and global economies coincident with the violent upheaval that swept over global financial markets beginning in mid-September. Indeed, virtually all optimism has evaporated and fears of the potential consequences of the rapidly escalating global recession abound.
The pessimistic view presented in Table 1 at the beginning of 2008 was actually not the worst view at the beginning of the year but one that reflected a mild recession scenario. Read More
