I have an issue with the FDIC that I will air here.
The Bank Fail Friday team monitors and reports on Friday bank failures as well as issues in bank regulation and supervision from across the country. As the only West Coast member of the team, it's generally my duty to call all clear as I sneak out of the office just after 6p Pacific time (ok, make that 6:30 or 6:45, I'm a workaholic...) from my BlackBerry at the bus stop home. And yesterday, like most Fridays, I did exactly that after holding on a bit later for just one bank failure. Nothing. Suspicious quiet but alright, maybe we'd had a rough week previous and needed a break.
No sooner did I call all clear than Twitter informed me the FDIC had announced 9 failed banks - count 'em, 9! - absorbed by Minneapolis-based US Bancorp (as in US Bank). Fooled by the FDIC once before I swore I'd never let that happen after they got me just before 7p some other Friday. 9!
Knock off the funny stuff, FDIC, you're not slick by waiting until long after business hours on a Friday with this, especially if a Minneapolis-based bank was lined up to take these failures on, this should have been addressed and announced by 2p, not 6:45p Pacific time. That's nearly 10 at night on a Friday in NY, are you trying to hide something or what?
"For immediate release" obviously doesn't mean for immediate release and I call bullshit. U.S. Bank, NA, of Minneapolis, Minnesota, Assumes All of the Deposits of Nine Failed Banks in Arizona, California, Illinois and Texas:
The Federal Deposit Insurance Corporation (FDIC) entered into a purchase and assumption agreement with U.S. Bank, NA, of Minneapolis, Minnesota, a wholly-owned subsidiary of U.S. Bancorp, to assume all of the deposits and essentially all of the assets of nine failed banks. The nine banks were closed this evening by federal and state bank regulators, which appointed the FDIC as receiver.
The nine banks involved in today's transaction are: Bank USA, National Association, Phoenix, Arizona; California National Bank, Los Angeles, California; San Diego National Bank, San Diego, California; Pacific National Bank, San Francisco, California; Park National Bank, Chicago, Illinois; Community Bank of Lemont, Lemont, Illinois; North Houston Bank, Houston, Texas; Madisonville State Bank, Madisonville, Texas; and Citizens National Bank, Teague, Texas. As of September 30, 2009, the banks had combined assets of $19.4 billion and deposits of $15.4 billion.
(ouch, PNB San Francisco, sorry to hear that... not!)
U.S. Bancorp, the Minneapolis-based lender expanding amid the financial crisis, agreed to acquire nine failed banks owned by closely held FBOP Corp. and seized by regulators yesterday.
The nine banks will cost the Federal Deposit Insurance Corp. a combined $2.5 billion, the agency said. So far this year, 115 banks have failed, sending the insurance fund into a deficit in September and prompting the agency to propose that banks prepay three years of premiums to raise $45 billion.
U.S. Bancorp agreed to assume all the deposits and essentially all the assets of the banks, in California, Texas, Arizona and Illinois, that were seized yesterday by regulators, the FDIC said. The lender is adding branches, acquiring deposits and seeking to gain share in the mortgage market.
“This transaction is consistent with the growth strategy that we have outlined many times in the past,” Rick Hartnack, vice chairman of consumer banking for U.S. Bancorp, said yesterday in a statement. “We also view this type of acquisition as an efficient means of leveraging” the company’s capital base.
The company, which in June repaid $6.6 billion from the Treasury’s Troubled Asset Relief Program, said earlier this month that third-quarter profit rose 4.7 percent on higher net interest margins and fees from mortgage banking and transactions at automated teller machines.
U.S. Bancorp fell 99 cents, or 4 percent, to $23.22 yesterday in New York Stock Exchange composite trading, and has dropped 19 percent in the past 12 months.
Earlier this month, the lender purchased Nevada bank branches and $800 million in deposits from BB&T Corp.
US Bank is probably the only other bank in California that I would recommend to California depositors besides Bank of the West. But hey, maybe you enjoy that thrilling feeling you get from not knowing if your money is safe.
Happy Halloween, Sheila Bair, going as an axe murder this year are we?