Banking and Finance

Recent Posts

FDIC: Problem Institutions Decline, But Concerns Remain
Posted on 1 Mar 2012 by Kevin M. LaCroix

The FDIC's latest Quarterly Banking Profile for the period ending December 31, 2011, released February 28, 2012 ( here ), reflects a generally improving banking landscape and a continuing reduction in the number of problem institutions. But though... Read More

Number of Bank Failures Finally Starting to Decline?
Posted on 7 Apr 2011 by Kevin M. LaCroix

When the FDIC released its Quarterly Banking Profile for the fourth quarter 2010, it included a statement from FDIC Chairman Sheila Bair that the agency believes "the number of failures peaked in 2010." However, at least through the end of... Read More

As Banks Fail, Will Insurance Coverage Lawsuits Follow?
Posted on 4 Aug 2011 by Kevin M. LaCroix

One of the many distinctive traits of the litigation that surrounded the S&L crisis in the late 80s and early 90s was the plethora of lawsuits between the FDIC (and other federal banking regulators), on the one hand, and the failed banks' insurers... Read More

Is the FDIC Ramping Up Its Failed Bank Litigation?
Posted on 8 Mar 2012 by Kevin M. LaCroix

Though the current bank failure wave has been rolling for several years now and though there have been over 425 bank closures during that period , the much anticipated FDIC failed bank litigation has been slower to gain momentum - that is, perhaps... Read More

Two Questions: Bank Closures Winding Down? FDIC WaMu Lawsuit Settled?
Posted on 12 Dec 2011 by Kevin M. LaCroix

Whether the process is just winding down for the year or the process is actually winding down for good, the bank closure rate has recently fallen off dramatically. The FDIC has not taken over any banks for three weeks straight, with no bank closure... Read More

Meanwhile, The Number of Failed Banks Continues to Mount
Posted on 25 Oct 2011 by Kevin M. LaCroix

Early on during the current wave of bank failures, there were some pretty reckless predictions about how many banks might fail - indeed, some commentators suggested as many as 1,000 banks might ultimately fail, a prediction that I disputed at the... Read More

FDIC Sues Three WaMu Execs and Their Wives, Settles with Outside Directors
Posted on 18 Mar 2011 by Kevin M. LaCroix

As recently as this past Monday, commentators were grumbling that the FDIC is moving too slowly in pursue claims against former directors and officers of failed banks. The FDIC has responded in dramatic fashion with a March 16, 2011 lawsuit filing... Read More

FDIC Files Suit Against Former Haven Trust Directors and Officers
Posted on 15 Jul 2011 by Kevin M. LaCroix

On July 14, 2011, the FDIC filed a lawsuit in the Northern District of Georgia against 15 former directors and officers of Haven Trust Bank of Duluth, Georgia. This suit is the ninth the FDIC has filed as part of the current bank failure wave and the... Read More

Failed Bank-Related Activity Looming and Other Web Notes
Posted on 23 Nov 2010 by Kevin M. LaCroix

The lead article in the November 17, 2010 Wall Street Journal reported that the FDIC is conducting 50 criminal investigations of directors, officers and employees of failed banks. Given that (as of November 19, 2010) 314 banks have failed since January... Read More

Banks: Forget Too Big to Fail, How About Too Small to Succeed?
Posted on 5 Dec 2013 by Kevin M. LaCroix

According to the FDIC’s latest Quarterly Banking Profile ( here ), as of September 30, 2013, there were 6,891 federally insured banking institutions, down from 6,940 at the end of the second quarter and down from 7,141 as of September 30, 2012.... Read More

A Time-Ripened Tale of Toxic Assets, a Corporate Spin-Out and a Failed Bank
Posted on 14 Nov 2011 by Kevin M. LaCroix

Guaranty Bank of Austin, Texas's August 21, 2009 closure is the fourth-largest bank failure during the current wave of bank failures and the tenth largest bank failure in U.S. history. The bank's failure, which came just 15 months after its... Read More

FDIC Sues Failed Bank's Former Directors and Officers
Posted on 3 Nov 2010 by Kevin M. LaCroix

If the lawsuit filed on Monday is any indication, the long-anticipated FDIC litigation against failed banks may have arrived. On November 1, 2010, the FDIC filed a lawsuit in the Northern District of Illinois against eleven former directors and officers... Read More

  • Blog Post: FDIC Sues Failed Bank's Former Directors and Officers

    If the lawsuit filed on Monday is any indication, the long-anticipated FDIC litigation against failed banks may have arrived. On November 1, 2010, the FDIC filed a lawsuit in the Northern District of Illinois against eleven former directors and officers of Heritage Community Bank, a lending institution...
  • Blog Post: Failed Bank-Related Activity Looming and Other Web Notes

    The lead article in the November 17, 2010 Wall Street Journal reported that the FDIC is conducting 50 criminal investigations of directors, officers and employees of failed banks. Given that (as of November 19, 2010) 314 banks have failed since January 1, 2008, this report suggests that the FDIC is investigating...
  • Blog Post: FDIC Sues Three WaMu Execs and Their Wives, Settles with Outside Directors

    As recently as this past Monday, commentators were grumbling that the FDIC is moving too slowly in pursue claims against former directors and officers of failed banks. The FDIC has responded in dramatic fashion with a March 16, 2011 lawsuit filing in the Western District of Washington against three...
  • Blog Post: Number of Bank Failures Finally Starting to Decline?

    When the FDIC released its Quarterly Banking Profile for the fourth quarter 2010, it included a statement from FDIC Chairman Sheila Bair that the agency believes "the number of failures peaked in 2010." However, at least through the end of February 2011, the evidence was to the contrary...
  • Blog Post: FDIC Files Suit Against Former Haven Trust Directors and Officers

    On July 14, 2011, the FDIC filed a lawsuit in the Northern District of Georgia against 15 former directors and officers of Haven Trust Bank of Duluth, Georgia. This suit is the ninth the FDIC has filed as part of the current bank failure wave and the second that the FDIC has filed in Georgia. A copy...
  • Blog Post: As Banks Fail, Will Insurance Coverage Lawsuits Follow?

    One of the many distinctive traits of the litigation that surrounded the S&L crisis in the late 80s and early 90s was the plethora of lawsuits between the FDIC (and other federal banking regulators), on the one hand, and the failed banks' insurers, on the other hand, over the interpretation...
  • Blog Post: Meanwhile, The Number of Failed Banks Continues to Mount

    Early on during the current wave of bank failures, there were some pretty reckless predictions about how many banks might fail - indeed, some commentators suggested as many as 1,000 banks might ultimately fail, a prediction that I disputed at the time . But while it continues to seem highly unlikely...
  • Blog Post: A Time-Ripened Tale of Toxic Assets, a Corporate Spin-Out and a Failed Bank

    Guaranty Bank of Austin, Texas's August 21, 2009 closure is the fourth-largest bank failure during the current wave of bank failures and the tenth largest bank failure in U.S. history. The bank's failure, which came just 15 months after its publicly traded holding company spun out of Temple...
  • Blog Post: Two Questions: Bank Closures Winding Down? FDIC WaMu Lawsuit Settled?

    Whether the process is just winding down for the year or the process is actually winding down for good, the bank closure rate has recently fallen off dramatically. The FDIC has not taken over any banks for three weeks straight, with no bank closure at all so far during the month of December. And...
  • Blog Post: FDIC: Problem Institutions Decline, But Concerns Remain

    The FDIC's latest Quarterly Banking Profile for the period ending December 31, 2011, released February 28, 2012 ( here ), reflects a generally improving banking landscape and a continuing reduction in the number of problem institutions. But though the industry is showing improvement, the number...
  • Blog Post: Is the FDIC Ramping Up Its Failed Bank Litigation?

    Though the current bank failure wave has been rolling for several years now and though there have been over 425 bank closures during that period , the much anticipated FDIC failed bank litigation has been slower to gain momentum - that is, perhaps, at least until now. Through the end of 2011, the...
  • Blog Post: Banks: Forget Too Big to Fail, How About Too Small to Succeed?

    According to the FDIC’s latest Quarterly Banking Profile ( here ), as of September 30, 2013, there were 6,891 federally insured banking institutions, down from 6,940 at the end of the second quarter and down from 7,141 as of September 30, 2012. There were 8,680 banking institutions as recently...