Bank Failure – Mirae Bank
NOTE: On April 27, 2009 the FDIC issued a Cease and Desist order:
ORDER TO CEASE AND DESIST IT IS HEREBY ORDERED, pursuant to Section 1913 of the Financial Code and Section 8(b) of the Act, 12 U.S.C., that the Bank, its institution-affiliated parties, as that term is defined in section 3(u) of the Act, 12 U.S.C. § 1813(u), and its successors and assigns, cease and desist from the following unsafe and unsound banking practices: operating with inadequate capital in relation to the kind and quality of assets held by the Bank; operating with a large volume of poor quality loans; operating with an inadequate allowance for loan and lease losses (“Allowanceâ€); operating in such a manner as to produce operating losses; and operating with inadequate provisions for liquidity.
Now just two months later the FDIC had to step in and shut them down. Keep an eye on the Cease and Desist list I posted last night. By the way, Mirae Bank was on that list!
From the FDIC:
Mirae Bank, Los Angeles, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Wilshire State Bank, Los Angeles, California, to assume all of the deposits of Mirae Bank.
The five offices of Mirae Bank will reopen on Monday as branches of Wilshire State Bank. Depositors of Mirae Bank will automatically become depositors of Wilshire State Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers of both banks should continue to use their existing branches until Wilshire State Bank can fully integrate the deposit records of Mirae Bank.
Over the weekend, depositors of Mirae Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of May 29, 2009, Mirae Bank had total assets of $456 million and total deposits of approximately $362 million. In addition to assuming all of the deposits of the failed bank, Wilshire State Bank agreed to purchase approximately $449 million of assets. The FDIC will retain the remaining assets for later disposition.
The FDIC and Wilshire State Bank entered into a loss-share transaction on approximately $341 million of Mirae’s assets. Wilshire State Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.
Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-930-1848. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties can also visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/mirae.html.
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $50 million. Wilshire State Bank’s acquisition of all the deposits was the “least costly” resolution for the FDIC’s DIF compared to alternatives. Mirae Bank is the 45th FDIC-insured institution to fail in the nation this year, and the sixth in California. The last FDIC-insured institution to be closed in the state was MetroPacific Bank, Irvine, earlier today.
Hi Chuck,
As soon as you shorted the long treasury bond by your TBT purchase, I knew it was time to load up on TLT. Easiest 3 points I made. Thanks! Another great call of top ticking the 4% 10 year rate. What are you shorting next week? I almost have my house paid off since March. AMZN? AAPL? GS? Love you man!!!
chuck…looking at the sp 500 chart, you would think that it would show overvalue in the year 2007. it doesn’t. could you elaborate?
chuck…my bad. i thought the chart was current.
TBTF… I went long TBT a long time ago.. You are late to the trade (and party). If you are going to constantly criticize then at least get your facts correct ‘first’. I feel sorry for you always having to hide behind anonymous servers and names. Get a life man.
I don’t hide. Your mini-me Free Mind keeps kicking me off when I post. I would think that someone with an ego as big as yours would love the challenge of engaging someone with an ego as big as mine.
TBTF.. I hope you have plenty of stops in place on your ‘longs’ … you will need them
Yeah, TBTF… Modesty is another of your qualities…;-)
Is it so hard to understand that nobody wants to see you on the chat?
And that Chuck does not give a damn about your “opinion” or trades?
And you lack a bit of consistency in all the rubbish you post.
Anyway, change names, change ip’s as you wish… You’ll still be deleted and banned. It’s what you call a “life ban”.
Till next ban…
Chuck, this is a sad chain of discussion.
TA is all about being flexible and let the charts tell us what the trend is, not the other way round. Instead we have become one big bear camp and a small bull camp and are at each other’s throats if somebody disagrees. More so with every intra-day action – each camp claims victory.
I have been following this site since more than a year and I would want to get that earlier inclusive feeling. This was a “traders” site with a view of the economy and things that can change the charts. Somewhere we lost that (probably carried off with the bear wins of last year) & now the site + most site visitors have taken more grandiose responsibility of saving America, the world & have become increasingly utopian with rigid forecasts & shooting down any point of dissent.
People like FM needs to tone down. Nobody needs to police this site – we should welcome folks like TBTF & KK. Instead of berating them, we should hear out their analysis and their TA/FA basis for their forecasts & now we just end up mocking each other.
We are in very very interesting times, who knows what the new world will look like & who will still be standing next year.
By the way, I have covered my shorts including AAPL, 137 entry with a 2 $ loss and went long at 139 – since the broken trendline has been recaptured. AIB long still looks good. 4.5 is a great SL. UNG long and strong – 14.08 entry (no stops for now) – this is very long term buy and I think is making a reversal of a lifetime – flag breakout will confirm it soon.
Indy.. Everyone is welcome, however TBTF is only here to ‘taunt’ and offers nothing constructive to even support his criticisms. I would be more than happy to engage in a constructive exchange with that person if he or she would ever say something constructive and stop the endless ‘taunts’.
If that is the only thing he or she wants to do then I have no time for it.
For asking me to tone down, Indy, I still humbly think that wasn’t exactly your own policy when the S&P jumped to 957…
You were happily mocking bears, and not always in the kindest way. Of course, you will be expecting the same “scalp dance” when the scales turn the other way. Strangely enough, bulls tend to be myopic when it comes to them “berating” bears.
I seek to give objective information on the chat, and up to traders to establish their own trading plan.
Chuck does that too from a TA point of view, but people have been reading trading advice where he’s simply giving his analysis.
The problem with TBTF and KK is precisely that they don’t engage into any meaningful/constructive discussion. Either they taunt, or they insult Chuck or other members of RT. And as in any social setting, there are rules to respect on a chat or a blog. And the first one: don’t get personal, and don’t troll.
Anyway, at this point, even my bullish French trader recognizes that the sentiment has turned gloomy and that now everybody fears the happening of an “event” that would turn the markets down with several hundreds of points of loss. Take the warning or not it’s your trades, after all.
And I am sorry. I love this chat and this blog because you don’t only discuss about how to make money. We are also interested in the people around and in the economy and the evolution of the USA and the world.
If we miss what’s happening or have no desire to discuss it, then we are useless citizens of the world.
freemind,
You are a very intelligent individual and it shows in your reply to the previous comments. Exceptional people who posses an open mind and who are caring as well are hard to find these days. Don’t ever change.
Ann in Portland
Free,
very well said my friend.
Indy,
In my opinion Chuck is an excellent market analysist AND a caring world citizen, simultaneously. It is possible to trade and care at the same time. If he chooses not to particpate in any given market movement that is his choice. Just as it is yours. No one here has ever been be-rated for an opposing opinion IF they have been respectful in giving theirs. There is a way to communicate that is cerebral and there is a way that is not. I for one, will never berate you or your ideas. I will challenge any idea if I disagree, but my discussions will end like our last. over a cold cyber-beer. My hope is that sets a tone for other, there is not a need for passive agressive comments, we can agree to disagree and that’s just fine.
TBTF,
have a new name for you to follow, look him up, you’ll love him: cetin hakimoglu.
Hey FM – The enthusiasm at 950 was not meant to mock / taunt. At least it was not meant to be.
As for the French trader – I am a cautious bull. Daily EMAs have turned negative and my rules disallow going long. But markets usually go sideways till weekly EMAs start showing weakness. One can play both long & short and make money. Whether this is consolidation for another run up or start of a downleg, NOBODY knows, but charts will scream the answer in a few weeks time.
My strategy for this week – Short financials, long commodities (Of course I am holding AIB with a SL of 4.5):
GS – short with a SL at 156 – but wait for a good entry. This has been the Head & Shoulder neckline from 2006 to 2008. If this gets broken on the upside then recession is officially over
Commodities – Most look short term long candidates now with SL as Wed/Thurs candle. A good entry will be the retest of the lows.
Gold is another interesting chart. 1050 is on the cards – its a nice cup and handle formation from 1980 !!! A breakout of 1050 will take it to 1500+
As for the “event”, the wait for the “event” has been tiring and I hope eventually the event will happen. Maybe Gold is the event. Lets see. Maybe protectionism. Maybe war. Maybe it was Michael Jackson
Just kidding 
A little vindication for Chuck:
Out of Jessie’s Livermore’s book:
” It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I’ve known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level which should show the greatest profit. And their experience invariably matched mine that is, they made no real money out of it. Men who can both be right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money.
(…)
I can wait without a twinge of impatience. I can see a setback without being shaken, knowing that it is only temporary. I have been short one hundred thousand shares and I have seen a big rally coming. I have figured and figured correctly that such a rally as I felt was inevitable, and even wholesome, would make a difference of one million dollars in my paper profits. And I nevertheless have stood pat and seen half my paper profit wiped out, without once considering the advisability of covering my shorts to put them out again on the rally. I knew that if I did I might lose my position and with it the
certainty of a big killing. It is the big swing that makes the big money for you.”
What is important for Chuck is to be right on THE MARKET, not on each single up or down move. In that, his experience and knowledge certainly gives him an edge over us.
If you don’t understand what Livermore taught years ago and what Chuck is teaching right now, you don’t have much to do in the market.
If you read the second paragraph of Livermore, now you understand better Chuck’s positions in AAPL and SDS.
Free mind has not had enough time to police his own trades. Investing is a performace based activity, not an intellectual one. I can show you the chords on the piano, but until you sit down and play, who are you kidding?
For this short holiday week, the fact that the MM’s take their kids to work next week, and you know when the market is up, Daddy is a hero and everyone can go downtown for lunch and enjoy the fireworks later. I’m only looking at longs and pullbacks on SPY $90. I’m a buyer on dips! Both 07 and 08 were the best weeks of the year for day long trades.
67.216.151.218.pool.hargray.net
“If you don’t understand what Livermore taught years ago and what Chuck is teaching right now,”
“you don’t have much to do in the market.”
————–
“there are rules to respect on a chat or a blog. And the first one: don’t get personal, and don’t troll.”
Advice – The wise don’t need it and fools won’t heed it.
Only fools give advice.
And we all know who thinks himself to be the greatest adviser of all, as he even seems to think that he invented the down trend.
Toobigtofail and IndyTrader, Chuck and his court jesters don’t deserve your ideas. Just leave the fools alone and let them live in their own fool’s paradise!
Hello All,
I am smart enough to know that I am a lousy day or swing trader.
So I am forced to to look at as many of the long term technical indicators that I can find to determine the longer term direction.
The Fed’s LEI, ECRI’s many indicators, Coppack, housing charts both regional and countrywide, unemployment charts, etc….. almost all point positive.
What am I missng?
scott, you are on the wrong site, because, if you ask Chuck one more time, the egomaniac will probably ban you from this site.
Kk and TBTF – I have to ask this. You are very quick to keep throwing rocks and insults but, you have said nothing of why you disagree with the analysis here. I am very anxious to know why you feel the market is going to new highs. Technical or fundamental?
Instead of always complaining, how about saying why?
Hello Ken,
I did give some very specific, macro technical indicators above. Trying to understand what catalyst could be to make this thing fail.
I think that taking out Irans nuclear could send a shock.
But what am I not seeing that you see?
KK, if someone deserves to be banned now, it would be you too… Just for the sheer amount of insults you keep pouring out on Chuck, every single day.
We all know there’s something pathological about TBTF, but what about you? Unless it was a defining event that suddenly created the same shock as in TBTF…
Just wondering what keeps people like you or TBTF coming back to this site? Evidently it is not made for you, nor are you very welcome.
In fact of egomaniacs, I seldom saw such a well-assorted duet.
“Just leave the fools alone and let them live in their own fool’s paradise!”
But pray, just do that, no worries, we won’t suffer being deprived of your insults.
And KK, meditate this:
“Those who hate most fervently must have once loved deeply; those who want to deny the world must have once embraced what they now set on fire.†Kurt Tucholsky
I still remember when you were petitioning for having a chat window restricted for “big” players where you would only read Chuck’s message…
What a u-turn! 
OK, so the FDIC doesn’t want private equity to play a role in recapitalizing the banking system. good luck. alienating a deep pool of capital that actually has the intellectual capability, desire to invest and financial wherewithal to manage some of these disasters to feasibility makes a lot of sense. i don’t disagree with some measures to prevent private equity controlled banks from making off-market (or even at market) loans to the PE firms’ portfolio companies so the likes of Cerberus can’t do to some freshly capitalized bank what they did to their Japanese bank affiliate, but making the bank’s cost of capital non-competitive just means that these guys won’t put money in. but it’s a government agency, so stupid and illogical is par for the course.
http://www.beaconintegration.com