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Tuesday, August 04, 2009

Resource: Failed Bank List with Enforcement Documents

by Calculated Risk on 8/04/2009 09:35:00 PM

ProPublica has a great table of failed banks with sortable columns by state, date and Federal regulator.

The database also includes links to public enforcement documents with the dates the documents were issued (Cease and Desist orders, Prompt Corrective Action directives, etc.).

As an example, Millennium State Bank of Texas was seized on July 2nd, 2009 and the FDIC entered a Cease and Desist order on the 19th of May 2009 FDIC. So the bank was closed less than two months after the Cease and Desist order was issued.

Other banks lasted longer, and a C&D isn't a guarantee of failure since some are cured.

A Federal Reserve Prompt Corrective Action (PCA) directive seems to have a very short leash. As an example BankFirst in South Dakota received a PCA directive on June 15th and was seized on July 17th.

If you go to the Federal Reserve enforcement list, you will see Written Agreements and Prompt Corrective Actions popping up fairly frequently. Here is one from yesterday:

The Federal Reserve Board on Monday announced the issuance of a Prompt Corrective Action Directive against Warren Bank, Warren, Michigan, a state chartered member bank.

A copy of the Directive is attached.

Attachment (51 KB PDF)
That makes Warren a BFF candidate in about a month. Also be on the lookout for Bank of Elmwood, Racine, Wisconsin (PCA on July 23rd).

Note: the ProPublica list may be missing some enforcement documents. I found a Prompt Corrective Action for Community Bank of West Georgia on May 21st that isn't included - and the bank was seized a month later.