Could the U.S. Do Like Cyprus and Seize Bank Deposits?
Cyprus' attempt to raid insured bank accounts has left a bad taste in the mouths of people around the world, and led some to ask: Could it ever happen here in America?
Cyprus' attempt to raid insured bank accounts has left a bad taste in the mouths of people around the world, and led some to ask: Could it ever happen here in America?
Profits at U.S. banks jumped almost 37 percent for the October-December period, reaching the highest level for a fourth quarter in six years as banks continued to step up lending. The figures are fresh evidence of the industry's sustained recovery more than four years after the financial crisis.
In another example of how far we haven't come since the financial crash, U.S. regulators are now warning banks they shouldn't presume regulators will work across borders if a too-big-to-fail institution finds itself about to fail.
Discover Bank is paying $214 million to settle charges that it pressured credit card customers to buy costly add-on services like payment protection and credit monitoring.
A surge in earnings by the biggest banks at the end of last year made 2011 the most profitable time for the industry in five years. More earnings and fewer troubled banks suggest the industry has healed since the 2008 financial crisis.
This week, the government took a big first step toward shutting down the Can't Lose Room in the Wall Street Casino. It's now one comment period away from enacting the Volcker Rule, which limits the kinds of risky investments banks can make with money insured by the U.S. taxpayer.
More than 70 U.S. banks have failed this year, according to the FDIC. And one DailyFinance reader wants to know how safe is the money in our bank accounts? Laura Rowley responds.
Picking a bank is a lot like selecting a new paint color for your kitchen. You're going to see a lot of it, and while you can always change your mind if you don't like the one you've chosen, it's a hassle. We asked the experts for advice on how to choose the one best suited to your needs.
Given the level of public outrage over the government's rescue of banks during the financial crisis, the final cost to the taxpayer of keeping those failed institutions afloat turns out to have been relatively modest: The FDIC has paid out a mere $8.89 billion to 165 banks since the crisis began.
The number of federally insured banks at risk of failing rose to 884 -- nearly 12% -- in the last quarter of 2010, reaching the highest level in 18 years.
The federal government says excessive pay at financial institutions was one of the main causes of the recent economic crisis. It now wants to make sure bank executives and traders take less risk, by insisting they defer a large part of their compensation.
Two recent acquisitions by Canadian banks likely foretell that M&A activity among U.S. banks will only accelerate next year. Smaller banks that survived the financial crisis, but have few growth opportunities, are now attractive takeover targets.
The financial headlines of the last several months have shown large banks making near-record profits, and small banks being closed at a pace of three or four per week. The FDIC has released its comprehensive report on the industry for the third quarter, and it confirms that fairly positive assessment.
Wells Fargo agreed to pay Citigroup $100 million to settle a lawsuit stemming from Wells Fargo's acquisition of Wachovia in 2008, the companies said Friday.
The FDIC is changing the way banks pay for insurance, and big banks will soon pay much more than their smaller rivals to protect deposits. Even so, many customers may be better off at large banks, which could start aggressively competing for new deposits.
Regulators shut down four banks Friday, bringing the total of 2010 failures to 143. That tops the 140 shuttered last year and is the most in a year since the savings-and-loan crisis two decades ago.
The FDIC says the number of troubled financial institutions is increasing, but the number of loans 90 days or more past-due has declined for the first time in four years. "This is the best quarterly profit for the banking sector in almost three years."
Over the weekend, the FDIC announced the seizure of seven banks, bringing the 2010 tally to 103. It's very possible that 2010 failures could surpass 2009, but the forecast improves starting in 2011.
A provision in the newly passed Dodd-Frank financial overhaul law makes the higher FDIC insurance limit of $250,000 retroactive to 2008. That means depositors at six banks will now get reimbursed for the higher amount.
Congressional negotiators agreed late Tuesday to abandon a $19 billion tax on banks after Republicans balked over the measure. Instead, lawmakers agreed to increase FDIC bank premiums and use the savings from ending the $700 billion TARP program early to pay for the bill.
Lee Farkas, the former CEO of the now bankrupt mortgage lending company Taylor, Bean & Whitaker, has been indicted for allegedly engaging in a fraud scheme to misappropriate $1 billion from the government's Troubled Assets Relief Program and other targets.
Regulators have closed the Washington First International Bank in Seattle, bringing to 82 the number of U.S. bank failures this year.




















