Saturday, November 14, 2009

More Losses for TARP

by Calculated Risk on 11/14/2009 12:23:00 AM

When Pacific National Bank of San Clemente was closed by regulators Friday, the TARP lost $4.12 million (ht Matt Padilla). Last week the TARP lost $298.7 million when San Francisco-based United Commercial Bank (UCBH Holdings) failed.

It looks like TARP losses are becoming a trend ... and, oh, the cost to the FDIC Deposit Insurance Fund (DIF) for the three bank failures today is estimated to be almost $1 billion.

  • Here is the updated Unofficial Problem Bank List

  • And the quote of the day via the WSJ: State Finance Directors Warn of More Trouble Ahead
    "I looked as hard as I could at how states could declare bankruptcy," said Michael Genest, director of the California Department of Finance who is stepping down at the end of the year. "I literally looked at the federal constitution to see if there was a way for states to return to territory status."
  • And in economic news, the trade deficit increased in September. The major contributors to the increase were higher oil prices and more imports from China. Also - since the deficit was higher than expected - Q3 GDP will probably be revised down.