Seven banks Closes By Regulators

Seven banks closed Friday bringing the number of  failed to 140. Two banks in California, along with those in Florida, Alabama; Georgia, Michigan and Illinois shuttered by Federal Regulators.

The banks in California were the largest seized First Federal Bank of California-based in Santa Monica near Los Angeles.  One of the oldest banks in Southern California, founded in 1929  at the start of the Great Depression.  Ironically, the banks demise  comes at “Great Recession” the greatest financial disaster since then.

The government sold  the banks assets and deposits of OneWest Bank based in Pasadena,CA. The bank with 39 branches in Southern California have reopened as OneWest Bank. One West formerly known as IndyMac Bank. IndyMac  closed down in 2008 by regulators.

An investment group which includes  controversial Billionaire philanthropist  George Soros bought IndyMac in 2009.

OneWest Bank will grow to 72  branches.

The second bank to close was  Imperial Capital Bank based in La  Jolla section of  San Diego. Imperial Capital has$4 billion in assets and $2.8 billion in  deposits. Imperial Capital was sold by federal regulators to Los Angeles based City National Bank. Imperial Capital branches will reopen on Monday as branches of City National Bank.

Imperial Capital had nine branches in California,Nevada, and Maryland.

Rockbridge commercial Bank based in Atlanta with$294 million in assets and $291 Million in deposits, New South Federal Saving Bank  in Irondale,AL with $1.5 billion in asset and$1.2 billion in deposits. Plano,TX based Beall Bank agree to buy New South Federal assets, deposit including the lone bank branch.

Citizens State Bank of New Baltimore, with  $168 million in assets and $157 million in deposits Peoples First Community Bank of Panama City,FL;with $1.8 billion in asset and $1.7 in deposits. Hancock Bank based in Gulfport,MS agreed to buy Peoples First Community.

and Independent Bankers’ Bank based in Springfield,IL with $585 million in assets and $511 million in deposits. Independent Bankers’ Bank is  a  bank for smaller banks. The FDIC created a “bridge bank” that keeps the bank open until a  buyer is found.

Rockbridge Commercial Bank will be wind down and the deposits will sent to their customers.

AP via My Way News

KTLA-TV /DT “KTLA 5 News”

San Diego Union-Tribune

House of Representatives Approves $155 Billion for Jobs

The House of Representatives on Wednesday a  $155 billion jobs bill. The bill hopes to stem the growing  number of jobless Americans. The vote 217 to 212.

The jobs bill would create more “shovel-ready” construction projects,  and avoid the layoffs of government workers including police, fire fighting, and teachers.

The US Senate will vote on this bill in January 2010.

Reuters

National Debt Exceeds Debt Limit

On Wednesday,  Federal Government went over the National Debt Limit.  This is  equal to person going over his /or her Credit Card limit. The Treasury Department reports federal government has exceeded  Statutory Debt Limit which Congress set last February. The Debt limit set at  $12.104 trillion.

The  Federal Government debt was $12.135 trillion. Just slightly over limit. Treasury officials says the government has “extraordinary accounting tools” which allows the government  to extend itself credit by $150-billion debt goes over  the debt limit.

Without the “tools” the Federal Government would not be able to borrow money, pay social security recipients and would shut down portions of the government.

There is legislation that would allow the Federal Government to increase the Debt Limit by $290 billion (omit) equal to six weeks of borrowing.

The Conservatives Democrats and Republicans in the House of Representatives stopped the  a $1.8 trillion increase so that the Liberal Democrats will face the wrath of the voter.

CBS NEWS has more.

Washington’s Dirty Secret:Federal Employees Owe Back Taxes

The Internal Revenue Service better know by the acronym IRS revealed a dirty little secret federal employee’s owe more than $3 billion dollars  in back taxes! Yes $3 billion!

according to the IRS 276,300 federal employees and retirees owe $3,042,200,000.That’s a lot of money.

The IRS follows the non-compulsory payment to the IRS from Federal Employees and Retirees. The agency find federal employees come up short.

The report covers nearly every department and agency with more than  25 employees. The report show that less than one percent of all federal employees owe back taxes. That’s the good news!

The department or agency who’s employees owe back taxes the Postal Service.   Yea,the post office. Collectively they owe  $297,933,756.

“We urge our employees to comply with all tax laws and are encouraged that many who have been delinquent have agreed to payment plan with the IRS,” USPS spokesperson Mark Saunders tells WTOP in a statement.

“It’s important to look at the percentage of postal employees who may be delinquent on their federal taxes, not just the number itself. According to IRS figures, the delinquency rate for Postal Service employees is relatively small.”

Retiree of US Military comes in  with 33% of all federal employees that owes; $1,343,538,055 in unpaid taxes for 2008.

The National Capital Planning Commission, where 10.42 percent maintains the largest percentage of scofflaws . What?!?!?!?

The National Capital Planning Commission (NCPC) is a U.S. government agency that provides planning guidance for Washington, D.C. and the surrounding National Capital Region (a/k/a Greater Washington,D.C. Metropolitan Area).

“NCPC is committed to working closely with the Department of The Treasury to resolve issues of federal income tax delinquency involving its staff,” NCPC spokeswoman Lisa MacSpadden said in a statement.

“The agency takes this matter very seriously and recognizes that federal employees must adhere to the highest ethical standards regarding financial matters.

“We remind our employees of this responsibility as part of our mandatory annual ethics training. Upon receipt of an official notice from the IRS about a specific employee’s noncompliance, NCPC will take appropriate administrative action.”

Other federal agencies :

• Executive Office of the President (includes the White House): 50 employees owe $812,917;
• U.S. Senate: 231 employees owe $2,469,026;
• U.S. House of Representatives: 447 employees owe $5,809,631;
• U.S. Tax Court: 3 employees owe $39,752;
• Active Duty Military: 27,111 employees $102,474,672.

By  the way the  IRS employees non-compliance rate (the percentage of IRS Workers owe back taxes) is low 0.76 percent down from .089  percent. IRS employees have an incentive: they may be fired for  owing back taxes.

WTOP 103.5 FM

Wikipedia

Three Banks Close By Federal Regulators

Regulators in Arizona,  Kansas and Florida has close three bank on Friday. This bring the number of failed banks to 130.

Valley Capital Bank  based in Phoenix suburb of Mesa,Az. with $40.3 million in assets  and $41.3 in deposits. Enterprise Bank and Trust of  Clayton, MO in the Saint Louis area will take over Valley Capital assets and deposits. Valley Capital sole branch becomes a branch of Enterprise Bank and Trust.

Solutions Banks based in Overland Park, KA had $511.1 milion in assets and $421.3 in deposits. Fayetteville,AR based Arvest Bank will take over Solutions Bank. Solutions  six branches which closed on Friday was re-open as branches of  Arvest Bank.

Republic Federal Bank based in Miami closed on Friday.  Republic Federal has $433 million assets and $352.7 million in deposits. 1st United Bank based in Boca Raton, FL  will assume Republic Federal deposits and Assets . Republic Federal four bank branches which is only in Miami-Dade County became 1st United Bank branches on Saturday. This will expand 1st United coverage into the highly competitive Miami-Dade County Market.

AP via My Way News

Kansas City Star

Former Homeowners has New Lease on Life as Renters

Once upon a Time  home ownership  was goal of many Americans. But for some homeowners the American Dream turned into nightmare.These homes which lost more than half its value has placed their former owners into default and eventual foreclosure.

Now for some the nightmare is over  and they discover there is life  after foreclosure  and it’s not all bad.

Introducing Shana Richey. She  and her husband once were  homeowners on Caspian Dr. in Palmdale,CA in the golf course community of Rancho Vista Country Club.  The Richey’s were not members of the golf club. However, they lived ok.   But house lost value and they were soon underwater. The Richey’s defaulted and since sold the home to the  bank.

Today, Shana Richey is not beholden to a mortgage  and ironically they moved larger home in the same neighborhood. The rent on the current home is about half of what  her mortgage was.

“It’s just a better life. It really is,” says Ms. Richey. Before defaulting on her mortgage, she owed about $230,000 more than the home was worth.

As a renter, this allows the Richey’s to do things that they have not done for years including season passes to Disneyland. She  is taking her family on a cruise to Mexico.

“We’re saving lots of money,” Ms. Richey says.

Wall Street Journal has the rest of the story.

Democrats To Raise The Federal Debt Limit to $14 Trillion

While Americans are finding out they can’t get credit line increase or an increase on credit cards. American small businesses cannot get credit to keep their businesses float. But Democrats will raise the federal debt limit by $1.8 trillion to $14 Trillion.

The  Democrats in Washington,D.C. plan to increase the limit by before they leave for Christmas / New Year Day’s Holiday.

“We’ve incurred this debt. We have to pay our bills,” House Majority Leader Steny Hoyer told POLITICO Wednesday. Hoyer acknowledged that the increased amount is twice as higher than projected in last Spring budget.

The Democrats knows they are taking risk raising the debt ceiling could incur the wrath of the  American voter.  It is better to increase the credit limit now than wait to the July 1st of the   new fiscal year to do so.

Senate leaders are   forging a bipartisan plan to reduce  the federal deficit.

Politico has more.

The Feds Closes Six More Banks. Now 130 Banking Insititutions Are Gone.

The FIDC has close  six financial institutions  on Friday bring the number to 130.   The six banks include AmTrustBank, in Cleveland,OH; Benchmark Bank in Aurora,IL; Greater Atlantic Bank, in Reston,VA a Washington,DC suburb.

In addition three banks in Georgia shuttered: Atlanta-based Buckhead Community Bank, First Security National Bank based in Atlanta Suburb of Norcross,GA and Tattnall Bank of Reidsville,GA.

The largest bank that closed  AmTrustBank in Cleveland, OH  “was in an unsafe and unsound condition because of substantial loan losses, deteriorating asset quality, and insufficient capital.”

The banks core capital was down 68% over  a 12 month period. AmTrustBank had $ 12 billion Assets and $8 billion in deposits.   The bank failure was a results bad real estate loans in California, Arizona, and Florida. Started as Ohio Savings and Loan in 1889;AmTrust 120 year history comes to an  end. New York Community Bank will take over AmTrustBank 66 branches which becomes New York Community Bank.

Buckhead Community Bank, shut down by regulators on Friday. Buckhead had $838 million in deposits and $874 in assets.  State Bank and Trust of Macon, Ga will take over Buckhead Community 6 branches operating under the following na_es: The Sandy Springs Community Bank, The Midtown Community Bank, The Alpharetta Community Bank, the Cobb Community Bank, The Forsyth Community Bank and The Hall Community Bank.

State Bank and Trust will also take over First Security National Bank’s $123 million in deposits, and a$110 million of $123 in assets and it’s four Metro Atlanta branches.

Greater Atlantic Bank based in the Washington,DC suburb of Reston,VA will become branches   of Sonabank  in McLean, Va. Greater Atlantic had $179 million in deposits and $203 million assets . All four branches of Greater Atlantic will become SonaBank .

The Tattnal Bank of Reisville,GA taken over Heritage Bank of the South based in Albany,Ga.  The Tattnal Bank has $47.3 million deposits and $49.6 million in assets. The Tattnall two branches will become Heritage Bank of the South .

Aurora,Il based Benchmark Bank will became a part of Chicago, Il MB Financial. Benchmark had $181 million in deposits and $170 million in assets. All five branches of Benchmark Bank becomes MB Financial.

CNN Money

Congressional Black Caucus vs Obama:Where is the Love?

Unemployment is at 10.2%. For African-American is over 31% and members of the Congressional Black Caucus and the White House is clashing over the lack of jobs and funding for back business.

On Wednesday, Ten black members of House Financial Service Committee boycotting a vote meeting on financial industry  regulations reform. The vote almost cost Congressman Barney Frank(D-MA) Chairman of the Financial Service Committee votes.

A battle  between Rep. Maxine Waters (D-CA) and the Obama Administration was due to lack of funding for  black own businesses.  The Wall Street Journal learned that a meeting between Waters and Treasury Secretary Timothy Geithner and White House Chief of Staff Rahm Emmanuel was  testy.  Waters alleged that White House was not  aiding black owned businesses including a minority broadcaster.

The broadcaster, Inter City Broadcasting  have difficulty to refinance their loans to a better rate.  The meeting paid off. Two weeks after the meeting between Waters and The White House, Inner City Broadcasting was able to refinance their loans with Goldman Sachs.

Some in the Obama Administration worry that they  will be seen meddling in the affairs of business.

But the Congressional Black Caucus says that they are not playing favorites and interfering in the affairs of business. The caucus  see the White House favoring Big Business instead of the little guy.

At a press conference Waters  stated the caucus demands over the White House. Waters says the  Caucus would “use our power and our influence” to foreclosure and unemployment policies that  are harmful to  the community and will boost credit and federal contracts to minority own businesses.

The White House has tried to pacify the caucus  to no avail. Wednesday,Chief of Staff Emmanuel and Treasury Secretary   Geithner met with the Black Caucus and noting was accomplished.

After the get together; The CBC decided not to attend the committee meeting vote. The committee vote  was delayed before. Rep. Frank decided to go ahead with the vote. The bill passed 31-27.

During the press conference  Rep. Waters stated minority owned businesses are disproportionately affected by the recession.   Minority owned small businesses. She said minority owned banks do not have level of access to government finances like other banks.

Wall Street Journal

Dubai World Missses Announces It Will Miss an Interest Payment

World Markets jolted on Thursday and again on Friday as state controlled real  estate firm  Dubai World announced that it will miss a key interest payment.

Stocks lost value,  weak currencies such as  our US Dollar slammed, and British banks lost £14 billion in value fearing they face  exposure to Dubai World.

Dubai World debt is at  $80 billion. Mild compared to events in United States and United Kingdom. There was uncertainty who are Dubai World creditors. Several banks attempted  reassure investors that their risk  is minimal.

News of the announcement sent the FTSE 100 in London 171 points 5,194 the largest one  day  drop  in eight months. The British Treasury, Bank of England,and Britain’s Financial Service Authority are demanding UK banks to provide a list  stating their  exposure to Dubai World.

Dubai World has demanded creditors to “standstill” on interest payment. A scheduled teleconference with bondholders postponed due to jammed phone lines added to the anxiety.

Times of London has more