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Unofficial Problem Bank List Updated [Calculated Risk]

Monday, January 4, 2010 - 9:01 AM
Calculated Risk Blog updated its unofficial problem bank list. Updates are from last Monday's FDIC release of its actions for November 2009.

One new Cease and Desist Order is against Legacy Bank of AZ. This is a subsidiary of Peotone Bancorp. Inc. Six of its banks were closed last July. There's an interesting comparison at the CR post between this bank holding company and FBOP Corporation which had all of its subsidiaries closed last October:
In 1989, the FDIC received authority to assess affiliates for resolution costs under what is commonly referred to as cross-guaranty. The FDIC used cross guaranty to close still solvent banks controlled by FBOP Corp. on October 30, 2009. It is interesting that the FDIC has not applied cross guaranty to the remaining banking subsidiaries of Peotone Bancorp.
Ken TuminKen Tumin5,471 posts since
Nov 29, 2009
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