9 Banks Fold In Larest One Day Total Bringing The Total To 115. DC Dalton will love..

[d90king]

Largest one day total this year and I believe since 1992... Its a good thing our government is telling us everyhing is back on track.

LOS ANGELES (Reuters) - U.S. authorities seized nine failed banks on Friday, the most in a single day since the financial crisis began and the latest stark sign that substantial parts of the nation's banking industry are being crippled by bad loans.

The move brought the total number of failed banks in 2009 to 115 -- their highest annual level since 1992 -- with analysts expecting more to come. Among the lenders seized Friday was Los Angeles-based California National Bank, in what was the fourth-largest U.S. bank failure this year.

The largest institution to fail in the current financial crisis was Washington Mutual, which boasted $307 billion in assets when it was shuttered in September 2008.

U.S. Bancorp on Friday acquired the nine banks that had been held by FBOP Corp, picking up $18.4 billion in assets and $15.4 billion of deposits.

Visibly worried employees lined up to file into Cal National's head offices in the heart of a deserted downtown Los Angeles on a chilly Friday evening, where they had their employers' fate explained to them, regulators said.

"We're getting ready to turn everything over to U.S. Bank," said Roberta Valdez, a spokeswoman for the Federal Deposit Insurance Corp, which helped supervise the transfer of FBOP's assets. "They will continue to operate as normal in the interim," she added, referring to lenders acquired from FBOP.

U.S. Bancorp -- which has been buying up distressed assets this year -- is picking up the lenders once owned by FBOP, a private Illinois group with over $18 billion in assets that owned banks in Texas, Illinois, Arizona and California.

Cal National is FBOP's largest bank by branches. Others that will now go under the U.S. Bancorp umbrella included BankUSA, Citizens National Bank, Madisonville State Bank, North Houston Bank, Pacific National Bank, Park National Bank, San Diego National Bank, and the Community Bank of Lemont.

"This transaction is consistent with the growth strategy that we have outlined many times in the past, which includes enhancing our existing franchise through low-risk, in-market acquisitions," said Rick Hartnack, vice chairman of consumer banking for U.S. Bancorp.

"This transaction adds scale to our current California, Illinois and Arizona footprints."

NEXT BIG HEADACHE

In the "near future," all nine lenders' branches will be re-branded U.S. Bank, which is the California-focused unit of U.S. Bancorp's that operates a network of more than 770 branches across Illinois, Arizona and California.

U.S. Bancorp did not specify what would happen to the new employees it inherits.

Cal National operates 68 branches across Southern California with more than $7 billion in assets. As of June 30, the lender maintained five times as much foreclosed property on its books and twice as many non-current loans as it had a year earlier, according to the Los Angeles Times, which first reported news of its evening takeover on Friday.

Cal National lost about $500 million on heavy investments in Fannie Mae and Freddie Mac preferred shares, the newspaper added, referring to securities rendered nearly worthless by the government takeover of the mortgage firms last year.

According to FDIC data, Cal National was the fourth biggest bank failure this year in terms of assets, just edging out Corus Bank, seized Sept 11 with a flat $7 billion of assets.

A bank official who answered the main number at Cal National's headquarters said they could not talk at the time.

Banks are still cleaning up their balance sheets from the recent credit boom that fueled banks' appetite to extend loans, many with poor underwriting and triggers that caused borrowers' payments to spike to unaffordable levels.

More lenders are expected to go under this year as the industry tries to get a handle on commercial real estate loans that will continue to worsen, as more strip malls go vacant and residential developments stall.

Banks held about $1.7 trillion in commercial real estate loans at the end of September, according to Federal Reserve data, or about 15 percent of their total assets. But to the extent these loans weaken, small banks are likely to be hit the hardest because larger banks were better diversified.

Banks that analysts say could risk big losses include Salt Lake City's Zions Bancorp, Columbus, Georgia's Synovus Financial Corp and Dallas-based Comerica Inc.

Before FBOP, U.S. Bancorp bought Downey Savings of Newport Beach and PFF Bank & Trust of Pomona when those thrifts failed last November, the newspaper said. Just this month, U.S. Bancorp bought 20 Nevada branches from BB&T Corp, which had acquired them as part of its deal to buy Colonial BancGroup Inc, it added.

(Additional reporting by Mary Milliken; Editing by Bernard Orr and Dean Yates)

http://www.reuters.com/article/wtUSI...59U05420091031
LINK:

[-JD-]

[snip]
NEXT BIG HEADACHE

In the "near future," all nine lenders' branches will be re-branded U.S. Bank, which is the California-focused unit of U.S. Bancorp's that operates a network of more than 770 branches across Illinois, Arizona and California.[snip]

Ummmm, weren't we supposed to be trying to get away from "too big to fail" ... ?

[dc dalton]

OK, so now my name has become part of a thread title (way to suck me in)

I was debating posting this the other day but I got busy and said screw it.


Am I Surprised? NOPE


Still wondering where the hell we are? YUP!


My gut tells me we are in the middle of a 'double dip recession' and as much as I want say that's BS I am VERY afraid something VERY ugly is on the horizon, but I wish and pray I'm wrong, all while my 'gut' is telling me the exact opposite!

You all know I am a small business owner and we are getting killed by this mess BUT for those that understand 'truth and lies' we know this is one huge sham. There is no recovery that is 'real' from anything I see right now. Obama and his 'same old' financial crew (meaning same as GW crew) are following the standard playbook but they don't understand the playbook was written for a different game. This game isn't a "game" it's fucking serious but THEY don't get that'....

At the same time us 'small business owners' are begging for this mess to turn around because making ends meet, under these circumstances is a bitch.


So I STILL say, "plan for the worst and hope for the best" and if you are a small business owner get "ready for hell on earth"

Let's hope I'm just some dumb asshole that doesn't have clue one ...









OH and 700+ neg rep points for anyone that blames this mess on Obama. yes he is following the 'universal play book' but that 'book' was written many years ago and every asshole that reads it thinks it is gospel ... well let me tell you it isn't!

[RJT]

OH and 700+ neg rep points for anyone that blames this mess on Obama. yes he is following the 'universal play book' but that 'book' was written many years ago and every asshole that reads it thinks it is gospel ... well let me tell you it isn't!

Heh, it's tempting to just jerk your chain with that....but as quick as I am to fault Obama for stuff, I won't knowingly lie about the guy....It's the same story just a different lead singer...

Btw, +rep for being honest enough yourself to admit he's as guilty as the last guy and not protest his innocence and blame it 100% on someone else

[dc dalton]

Here's what really scares me the most right now:

http://www.silverbearcafe.com/privat...cialcrash.html

Commercial Real Estate ... man that could get really ugly

[ehidle]

The dominoes are certainly falling. I imagine that every bit of wealth created since about 1990 is probably just fantasy. The entire stock boom of the 1990's was phony, as was the real estate boom of this decade. It was all imaginary wealth, amplified by shady financial instruments designed to represent non-existent value to the Nth degree.

Funny thing about wealth. It can come and go like the wind, but the promises made against that wealth (debt) live on forever.

[dc dalton]

The dominoes are certainly falling. I imagine that every bit of wealth created since about 1990 is probably just fantasy. The entire stock boom of the 1990's was phony, as was the real estate boom of this decade. It was all imaginary wealth, amplified by shady financial instruments designed to represent non-existent value to the Nth degree.

Funny thing about wealth. It can come and go like the wind, but the promises made against that wealth (debt) live on forever.

Well here's an additional 'thought' based on yours. Not sure if you know it but there were more millionaires made coming out of the 'great depression' than at any other time in history. Why? Because people were dumping everything they could dirt cheap just to survive. The concentration of wealth into a very few hands was astronomical ..... are we seeing the same thing right now?

[d90king]

I have another one to post shortly that in some ways has bigger implications to the small and medium size businesses.

[Roland of Gilead]

The concentration of wealth into a very few hands was astronomical ..... are we seeing the same thing right now?

And do those few hands all belong to the Gov't . . . that's a big difference.

OH and 700+ neg rep points for anyone that blames this mess on Obama. yes he is following the 'universal play book' but that 'book' was written many years ago and every asshole that reads it thinks it is gospel ...

I agree, we'd be in crappy shape even if it wasn't Obama, he just lit the afterburners on the whole thing.

Son of bitch. Shit.

[dc dalton]

And do those few hands all belong to the Gov't . . . that's a big difference.

Ah but is all the wealth going into the government now? no, actually it's the opposite. Look at these massive banks that gobbled up (granted with the government's help) these other so-called 'to big to fail' banks ... did you happen to notice their profits last quarter, shockingly high. They were in fact that high because they were 'given' these other banks and companies valued at pennies on the dollar even though the asset that went along with these 'sales' were in reality worth more.

So I would say, in response to your post, no the government isn't getting rich, quite the opposite in fact BUT they are helping their friends get mighty rich!