FDIC Confirms Good News, Bad News for U.S. Banks

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.

Higher FDIC Fees May Benefit Bank Customers

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 bank customers will be better off at large banks, which may now have a greater interest in attracting deposits.

FDIC: More Sick Banks but Sector Is Recovering

The FDIC says the number of troubled financial institutions and bank failures are increasing, but the number of loans 90 days or more past-due has declined for the first time in four years. FDIC chair says "This is the best quarterly profit for the banking sector in almost three years."

Depositors at Failed Banks Get $200 Million

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.

Colony Capital Group Wins Bidding for FDIC Distressed Loans

A joint venture between Tom Barrack%u2019s Colony Capital LLC and Cogsville Group LLC won the bidding for a portfolio of distressed real-estate loans auctioned off by the Federal Deposit Insurance Corporation. The two companies will purchase a 40% stake in a $1.85 billion portfolio of commercial-property loans held by now-defunct banks such as Community Bank of Nevada and New Frontier Bank, The Wall Street Journal reported. The deal, due to be announced today, is the second-largest bulk sale of commercial-property debt under a public-private partnership.

Distressed Florida Banks Ask For Break From Capital-Raising

Florida banks are asking federal regulators for a break from government-ordered capital raising as they struggle with the impact of the real estate bust and the BP oil spill. Florida%u2019s top banking lobbyist sent a letter to the Federal Deposit Insurance Corp. Chairman Shelia Bair and Federal Reserve Chairman Ben Bernanke, asking that all local banks get a 12-month reprieve from higher capital requirements, loan appraisals and new regulatory sanctions, the Wall Street Journal reported.

Congress Scraps Bank Tax in Wall Street Reform Bill

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.

FDIC Closes 82nd Bank in 2010

Regulators have closed the Washington First International Bank in Seattle, bringing to 82 the number of U.S. bank failures this year.

What Went Wrong at WaMu: Weak Regulators Ignored Risks

Agency infighting and regulators' disregard of shoddy lending practices allowed Washington Mutual Bank, which failed in 2008, to continue to make high-risk mortgage loans and sell them as securities into the market, a Senate investigative subcommittee reported Friday.

FDIC Weighs Changes in Its Fees for Big Banks

The Federal Deposit Insurance Corp. on Tuesday proposed changes to the way it determines how much it charges big banks to insure their deposits, with the aim of having large, higher-risk institutions pay bigger premiums. Large financial institutions "pose unique and concentrated risks" to the deposit insurance fund, something that came to the fore during the financial crisis, the agency said in a news release.

Banks Reduce Lending, Slowing Recovery

Banks continue to show their disdain for Main Street, as they posted their sharpest decline in lending since 1942, even though the bonus levels of the largest banks are projected to rise 17%. This weak lending will slow any prospects for growth in consumer spending and jobs.

The FDIC Lists Over 700 'Troubled' Banks

The number of U.S. banks on the FDIC's so-called problem bank list jumped by 150 in the fourth quarter to a level not seen since the S&L crisis of the early 1990s, but FDIC Chairman Sheila Bair said the financial industry does show signs of being on the mend.

How Small Banks Profit from Rivals' Failures

The big national banks get most of the attention, but it turns out that small banks are even more interested than their larger competitors when it comes to snapping up failed former rivals. Some 46% of small banks say they're interested in bidding for failed banks' assets or deposits, compared with just 36% of large banks.

Henry Paulson's Memoir Is a Cautionary Tale

Henry Paulson's just-published memoir "On the Brink" recalls the financial crisis as it unfolded in the fall of 2008. Far from a gossipy tell-all, it devotes the bulk of its pages to the cautionary tale of how the world's financial system nearly collapsed -- and what he tried to do about it.

Buying Spree Key to US Bancorp Earnings

Several key acquisitions should help US Bancorp. come in right at or slightly below Wall Street estimates of 29 cent per share, as it benefits from failed bank assets purchased from the FDIC last year.

The Feds Crank Up the Payback Pressure on Banks

As banks plan to announce billions in bonuses for their executives, the federal government is taking two different approaches to reining in those bonuses and collecting some of that money to pay back taxpayers and cut the federal budget deficit.