Tomorrow’s Wall Street Journal paper will be running the story that House Financial Services Committee Chairman Barney
Deaf, Dumb, and Blind
Frank has sent a letter to top banking regulators to “go easy on small banks”.
You did read that correctly. Barney Frank essentially says that enforcing bank regulations is hurting the small banks so he wants the bank police to go deaf, dumb, and blind.
[...] House Financial Services Committee Chairman Barney Frank (D., Mass.) sent a letter to the country’s top bank regulators, including Federal Reserve Chairman Ben Bernanke and Federal Deposit Insurance Corp. Chairman Sheila Bair, urging them to “show some temperance in their regulation of traditional banks.” One common complaint from lawmakers is that regulators’ tough examinations are making banks reluctant to lend.
“A self-fulfilling prophecy of community bank failures, shrinking credit availability and a slower economic recovery can all result from a regulatory overreaction to the current crisis,” said the letter, which also was signed by Rep. Walt Minnick (D., Idaho).
Federal bank regulators have hit hundreds of banks with formal and informal sanctions this year, ordering them to boost capital requirements — reserves set aside to cover possible losses — and sometimes to shake up management. Regulators have closed 115 banks since January, and bankers across the country are complaining examiners are criticizing the health of even the strongest banks.[...]
[...] Mr. Frank’s letter complains examiners are enforcing “unofficial” capital requirements that are higher than the normal standard. Secondly, it says examiners are focusing bank reviews mainly on asset quality and not other measures of a bank’s health. Third, it says “banks are being forced” to write down the value of assets to their market value, which can lead to “artificially low prices.”
A day after Mr. Frank’s letter, Timothy W. Long, chief national bank examiner at the Office of the Comptroller of the Currency, sent a memo to the agency’s examiners about new rules for commercial real-estate lending. In the memo he addressed the criticism examiners are facing.
“I have refuted and will continue to refute accusations that examiners are being ‘too tough’ or are creating the so-called credit crunch by their actions,” he wrote, according to a copy of the memo reviewed by The Wall Street Journal. [...]
By telling the bank regulators to lighten up on the smaller banks will simply allow the creation of an army of zombie banks. Over leveraging and bad loans contributed greatly to the economic collapse. Now when enforcing banking regulations are paramount to restoring trust in ‘the system’, Barney Frank just wants the regulators to go soft on them.
This is analogous to telling the police not to look at the burglar going into the banks. Except in this situation the burglars are running the banks.
What is Barney Frank so upset about anyway? The following list is directly from the FDIC press release files. Clicking on any of the contained links will bring up the full report issued by the FDIC against the said named bank. A lot of the findings are in the category of ‘unsafe banking practices’ and these reports are a warning to the bank to get its act together.
By the way, just about every bank failure so far has appeared on this list ‘before’ they failed.
FDIC Cease and Desist Orders – Updated November 4, 2009
Being that it is ‘bank failure Friday’ I thought it would be appropriate to provide the list of banks that have so far received cease and desist orders from the Federal Deposit Insurance Corporation (FDIC). The FDIC has been ‘very’ busy these days.
I will update this document as each months data is issued by the FDIC.
FDIC Cease and Desist Orders for 2009 Is your bank on this list? If yes then read the associated cease and desist order slapped on them by the FDIC. Regarding enforcement actions the FDIC takes against banks: “Generally, the FDIC pursues enforcement actions against the [banks] for violations of laws, rules, or regulations, unsafe or unsound banking practices, breaches of fiduciary duty, and violations of final orders, conditions imposed in writing or written agreements. In addition, the FDIC has the statutory authority to terminate the deposit insurance of any insured depository institution for violation of a law, rule, regulation, condition imposed in writing, or written agreement, or for being in an unsafe or unsound condition or engaging in unsafe or unsound banking practices.†2009 Enforcement Decisions Uniti Bank, Buena Park, CA; FDIC-08-395b; Issued 1/30/09 – PDF (PDF Help) Golden Coast Bank, Long Beach, CA; FDIC-08-359b; Issued 1/27/09 – PDF (PDF Help) First Vietnamese American Bank, Westminster, CA; FDIC-08-365b; Issued 1/29/09 – PDF (PDF Help) Douglas County Bank, Douglasville , GA; FDIC-08-357b; Issued 1/27/09 – PDF (PDF Help) First Commerce Community Bank, Douglasville , GA; FDIC-08-339b; Issued 1/6/09 – PDF (PDF Help) Central Progressive Bank, Lacombe, LA; FDIC-08-398b; Issued 1/28/09 – PDF (PDF Help) Horizon Bank, Pine City, MN; FDIC-08-393b; Issued 1/6/09 – PDF (PDF Help) Paragon Bank, Wells, MN; FDIC-08-212b; Issued 1/26/09 – PDF (PDF Help) Westbridge Bank and Trust, Chesterfield , MO; FDIC-09-016b; Issued 1/23/09 -PDF (PDF Help) Garden City Bank, Garden City, MO; FDIC-09-009b; Issued 1/29/09 – PDF (PDF Help) Geauga Savings Bank, Newbury, OH; FDIC-08-241b; Issued: 1/12/09 – PDF (PDF Help) First State Bank of Altus, Altus, OK; FDIC-08-287b; Issued 1/16/09 – PDF (PDF Help) Citizens State Bank, Woodville, TX; FDIC-08-379b; Issued 1/30/09 – PDF (PDF Help) First Bank of Beverly Hills, Calabasas, CA; FDIC-09-051b; Issued 2/13/09 – PDF (PDF Help) Imperial Capital Bank, La Jolla, CA; FDIC-08-392b; Issued 2/17/09 – PDF (PDF Help) First Regional Bank, Los Angeles, CA; FDIC-08-353b; Issued 2/23/09 – PDF (PDF Help) Desert Commercial Bank, Palm Desert, CA; FDIC-08-397b; Issued 2/17/09 – PDF (PDF Help) Bank of Agriculture and Commerce, Stockton, CA; FDIC-08-408b; Issued 2/19/09 – PDF (PDF Help) Temecula Valley Bank, Temecula, CA; FDIC-09-057b; Issued 2/12/09 – PDF (PDF Help) Community Bank of Lemont, Lemont, IL; FDIC-08-372b; Issued 2/5/09 – PDF (PDF Help) Midwest Community Bank, Plainville, KS; FDIC-08-373b; Issued 2/25/09 – PDF (PDF Help) Republic Bank & Trust Company, Louisville, KY; FDIC-08-308b; Issued 2/27/09 – PDF (PDF Help) University Bank, Ann Arbor, MI; FDIC-08-194b; Issued 2/12/09 – PDF (PDF Help) West Michigan Community Bank, Hudsonville, MI; FDIC-08-238b; Issued 2/19/09 – PDF (PDF Help) Bank of Leeton, Leeton, MO; FDIC-09-036b; Issued 2/27/09 – PDF (PDF Help) Concord Bank, St. Louis, MO; FDIC-08-368b; Issued 2/13/09 – PDF (PDF Help) Sherman County Bank, Loup City, NE; FDIC-09-046b; Issued 2/9/09 – PDF (PDF Help) Security Savings Bank, Henderson, NV; FDIC-09-004b; Issued 2/3/09 – PDF (PDF Help) The Park Avenue Bank, New York, NY; FDIC-08-401b; Issued 2/11/09 – PDF (PDF Help) Waterford Village Bank, Williamsville, NY; FDIC-08-402b; Issued 2/12/09 – PDF (PDF Help) Cape Fear Bank, Wilmington, NC; FDIC-09-005b; Issued 2/24/09 – PDF (PDF Help) Columbia River Bank, The Dalles, OR; FDIC-08-360b; Issued 2/9/09 – PDF (PDF Help) Bank of Westminster, Westminster, SC; FDIC-08-309b; Issued 2/24/09 – PDF (PDF Help) Woodlands Commercial Bank, Salt Lake City, UT; FDIC-09-041b; Issued 2/4/09 – PDF (PDF Help) Nexity Bank, Birmingham, AL; FDIC-09-011b; Issued 3/20/09 – PDF (PDF Help) Pan American Bank, Los Angeles CA; FDIC-09-114b; Issued 3/23/09 – PDF (PDF Help) Innovative Bank, Oakland, CA; FDIC-09-066b; Issued 3/3/09 – PDF (PDF Help) The Bank of Bonifay, Bonifay, FL; FDIC-08-325b; Issued 3/23/09 – PDF (PDF Help) Security Exchange Bank, Marietta, GA; FDIC-08-352b; Issued 3/10/09 – PDF (PDF Help) American Southern Bank, Kennesaw, GA; FDIC-08-366b; Issued 3/31/09 – PDF (PDF Help) Heartland Bank, Leawood, KS; FDIC-08-342b; Issued 3/30/09 – PDF (PDF Help) Century Bank of Kentucky, Inc., Lawrenceburg , KY; FDIC-08-262b; Issued 3/23/09 – PDF (PDF Help) Statewide Bank, Covington, LA; FDIC-08-369b; Issued 3/25/09 – PDF (PDF Help) K Bank, Randallstown, MD; FDIC-09-029b; Issued 4/1/09 – PDF (PDF Help) Muskegon Commerce Bank, Muskegon, MI; FDIC-08-274b; Issued 3/12/09 – PDF (PDF Help) State Bank of Aurora, Aurora, MN; FDIC-09-026b; Issued 3/19/09 -PDF (PDF Help) Brickwell Community Bank, Woodbury, MN; FDIC-08-332b; Issued 3/3/09 – PDF (PDF Help) The Riverbank, Wyoming, MN; FDIC-08-389b; Issued 3/11/09 – PDF (PDF Help) The Farmers Bank, Lincoln, NE; FDIC-09-060b; Issued 3/13/09 – PDF (PDF Help) Nuestro Banco, Raleigh, NC; FDIC-09-006b; Issued 3/12/09 – PDF (PDF Help) Cooperative Bank, Wilmington, NC; FDIC-09-053b; Issued 3/12/09 – PDF (PDF Help) Columbia Community Bank, Hillsboro, O R; FDIC-09-084b; Issued 3/4/09 – PDF (PDF Help) First Bank & Trust, Brookings, S D; FDIC-07-228b; FDIC-07-260k; Issued 3/26/09 – PDF (PDF Help) First State Bank, Wilmot, SD; FDIC-09-023b; Issued 3/3/09 – PDF (PDF Help) Horizon Bank, Bellingham, WA; FDIC-08-404b; Issued 3/3/09 – PDF (PDF Help) Frontier Bank, Everett, WA; FDIC-09-080b; Issued 3/20/09 – PDF (PDF Help) Mountain Pacific Bank, Everett, WA; FDIC-09-079b; Issued 3/5/09 – PDF (PDF Help) Plaza Bank, Irvine, CA; FDIC-09-175b; Issued 4/29/09 – PDF (PDF Help) Mirae Bank, Los Angeles, CA; FDIC-09-172b; Issued 4/27/09 – PDF (PDF Help) Independence Bank, Newport Beach, CA; FDIC-09-162b; Issued 4/24/09 – PDF (PDF Help) New Resource Bank, San Francisco, CA; FDIC-09-103b; Issued 4/28/09 – PDF (PDF Help) Affinity Bank, Ventura, CA; FDIC-09-086b; Issued 4/22/09 – PDF (PDF Help) Rocky Mountain Bank & Trust Florence, Florence, CO; FDIC-09-065b; Issued 4/2/09 – PDF (PDF Help) New Frontier Bank, Greeley, CO; FDIC-09-146b; Issued 4/6/09 – PDF (PDF Help) Coastal Community Bank, Panama City Beach, FL; FDIC-09-062b; Issued 4/22/09 – PDF (PDF Help) Georgia Heritage Bank, Dallas, GA; FDIC-09-013b; Issued 4/24/09 – PDF (PDF Help) Appalachian Community Bank, Ellijay, GA; FDIC-09-010b; Issued 4/24/09 – PDF (PDF Help) Security Bank of Jones County, Gray, GA; FDIC-09-124b; Issued 4/17/09 – PDF (PDF Help) Community Capital Bank, Jonesboro, GA; FDIC-09-019b; Issued 4/16/09 – PDF (PDF Help) Security Bank of Bibb County, Macon, GA; FDIC-09-050b; Issued 4/17/09 – PDF (PDF Help) Security Bank of Gwinnett County, Suwanee, GA; FDIC-08-411b; Issued 4/17/09 – PDF (PDF Help) Security Bank of North Metro, Woodstock, GA; FDIC-09-116b; Issued 4/17/09 – PDF (PDF Help) Bank of Lincolnwood, Lincolnwood, IL; FDIC-09-135b; Issued 4/21/09 – PDF (PDF Help) West Suburban Bank, Lombard, IL; FDIC-08-384b; Issued 4/23/09 – PDF (PDF Help) First Mariner Bank, Baltimore, MD; FDIC-07-285b; FDIC-08-358k; Issued 4/22/09 – PDF (PDF Help) Butler Bank, Lowell, MA; FDIC-09-148b; Issued 4/17/09 – PDF (PDF Help) Riverview Community Bank, Otsego, MN; FDIC-09-064b; Issued 4/7/09 – PDF (PDF Help) Carson River Community Bank, Carson City, NV; FDIC-09-067b; Issued 4/3/09 – PDF (PDF Help) Great Basin Bank of Nevada, Elko, NV; FDIC-09-095b; Issued 4/15/09 – PDF (PDF Help) Badger State Bank, Cassville, WI; FDIC-09-077b; Issued 4/30/09 – PDF (PDF Help) Marine Bank, Wauwatosa, WI; FDIC-09-43b; Issued 4/14/09 – PDF (PDF Help) First State Bank, Flagstaff, AZ; FDIC-09-171b; Issued 5/1/09 – PDF (PDF Help) Golden Security Bank, Rosemead, CA; FDIC-09-108b; Issued 5/8/09 – PDF (PDF Help) Darien Rowayton Bank, Darien, CT; FDIC-09-178b; Issued 5/7/09 – PDF (PDF Help) Premier American Bank, Miami, FL; FDIC-09-061b; Issued 5/18/09 – PDF (PDF Help) The Royal Palm Bank of Florida, Naples, FL; FDIC-09-113b; Issued 5/20/09 – PDF (PDF Help) First Commercial Bank of Tampa Bay, Tampa , FL; FDIC-08-347b; Issued 5/11/09 – PDF (PDF Help) Community Bank & Trust, Cornelia, GA; FDIC-09-068b; Issued 5/11/09 – PDF (PDF Help) The Gordon Bank, Gordon, GA; FDIC-09-109b; Issued 5/11/09 – PDF (PDF Help) Crescent Bank and Trust Company, Jasper, GA; FDIC-09-087b; Issued 5/11/09 – PDF (PDF Help) Farmers & Merchants Bank, Lakeland, GA; FDIC-09-091b; Issued 5/19/09 – PDF (PDF Help) The Bank of Commerce, Wood Dale, IL; FDIC-09-055b; Issued 5/27/09 – PDF (PDF Help) Town & Country Bank, Leawood, KS; FDIC-09-166b; Issued 5/29/09 – PDF (PDF Help) Peoples Bank of Kentucky, Inc., Flemingsburg , KY; FDIC-09-020b; Issued 5/8/09 – PDF (PDF Help) Westernbank Puerto Rico, Mayaguez, PR; FDIC-08-275b; Issued 5/22/09 – PDF (PDF Help) Coffee County Bank, Manchester, TN; FDIC-09-094b; Issued 5/1/09 – PDF (PDF Help) Millennium State Bank of Texas, Dallas, TX; FDIC-09-138b; Issued 5/19/09 – PDF (PDF Help) Capital Community Bank, Provo, UT; FDIC-09-236b; Issued 5/20/09 – PDF (PDF Help) Liberty Bank, Salt Lake City, UT; FDIC-09-122b; Issued 5/26/09 – PDF (PDF Help) Homestreet Bank, Seattle, WA; FDIC-09-121b; Issued 5/8/09 – PDF (PDF Help) AmericanWest Bank, Spokane, WA; FDIC-09-144b; Issued 5/11/09 – PDF (PDF Help) Source: http://www.fdic.gov/bank/individual/enforcement/neworders.html
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