FDIC Releases October Enforcement Actions
Nov 27, 2009 - 4:18 PM by Ken Tumin
I'm guessing there won't be any bank failures today since it's a holiday weekend. The FDIC did release its October Enforcement Actions today. They issued several Cease-and-Desist orders, and there were a few banks on the list that I've posted on. Some of these include:
CalculatedRisk Blog has updated its unofficial problem bank list based on these enforcement actions. The list now includes 543 banks.
References:
- Peotone Bank and Trust Company, Peotone,IL (offers a reward checking account)
- Hillcrest Bank, Overland Park, KS (offers nationwide CDs)
- Sterling Savings Bank, Spokane, WA (old checking bonus)
- Imperial Capital Bank, La Jolla, CA (offers internet accounts)
- LibertyPointe Bank, New York, NY (offers CDs for NY, NJ & CT)
CalculatedRisk Blog has updated its unofficial problem bank list based on these enforcement actions. The list now includes 543 banks.
References:
Featured Accounts
Related Posts
Useful Resources
Nationwide Savings Accounts
Anonymous - #1, Friday, November 27, 2009 - 4:23 PM
How ironic. I just paid-off my mortgage at Charter Bank of New Mexico two weeks ago. Now they get a cease and desist order.
Anonymous - #2, Friday, November 27, 2009 - 5:15 PM
Worth reading the "cease and desist" order. A multitude of sins.
The one that might affect people with accounts there: "(failure to maintain accurate and complete books and records)."
If I hadn't kept good records of my account at an institution that went under, I would have lost several hundred dollars.
The new outfit didn't have records on when the CDs were issued.
As a result, they wanted to charge me a much bigger early withdrawal penalty.
Anonymous - #3, Friday, November 27, 2009 - 6:25 PM
C&D order is NOT a big deal. Many banks who got it are still in good shape. It is an overly-pessimistic list (not a death sentence at all!!), IMHO.
Anonymous - #4, Friday, November 27, 2009 - 6:35 PM
Continued from above post:
The list, at best, serves as a guideline for selecting Reward Checking Accounts, since the C&D banks MAY be limited in rate by FDIC.
Anonymous - #5, Saturday, November 28, 2009 - 3:15 AM
Dumb question....What is a Prompt Corrective Action?
Anonymous - #6, Tuesday, December 1, 2009 - 4:08 AM
A Prompt Corrective Action means to do something to resolve your financial condition. You can merge with another bank, sell out to another bank, sell shares or obligations in order to come up with some capital. The current state of business of the bank has not improved and needs some kind of action. I have an account with one of these banks, so it may be time to start to slowly back out from it. Too bad. It was a good bank in terms of customer service, but got into the mortgage mess.
Add Your Comment
Post a Comment