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Friday, November 13, 2009

State Budget Quote of the Day, and more Bank Failure Preview

by Calculated Risk on 11/13/2009 05:07:00 PM

From 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 on banks:

From the Chicago Tribune: Amcore says regulators reject plan to raise capital (ht Doug)
Last month, Amcore ... disclosed it was "undercapitalized or significantly undercapitalized under some regulatory capital standards."

On Nov. 6, the Federal Reserve Bank of Chicago also notified Amcore that it found its capital plan unacceptable.

Amcore said it's continuing to work with its financial and professional advisors in seeking outside capital, and in complying with the regulators' orders, but "there can be no assurance that these actions will be successful."

It also conceded that it could get seized by regulators.

"Failure to submit an acceptable capital restoration plan or disposition plan or to restore capital levels may result in additional enforcement actions by the regulators, including the appointment of a receiver," it said.
Amcore has $4.9 billion in assets.

And there is plenty of noise down in Florida tonight, from the Florida Business Journal BankUnited CEO: Big deal is coming
BankUnited CEO John Kanas told members of the Greater Miami Chamber of Commerce during a luncheon Tuesday that they should expect a big deal by his bank in the next week.
And also: Texas billionaire Beal seeks failed Florida bank (ht Stephen)
Federal regulators have granted Texas billionaire and financial executive Andrew Beal approval to form a bank that could acquire a failed or failing Florida bank.
All of these players have plenty of problem banks from which to choose. On June 30, there were 15 undercapitalized banks in Florida, including Fort Pierce-based Riverside National Bank, Naples-based Orion Bank, Panama City-based Peoples First Community Bank, Immokalee-based Florida Community Bank and Sarasota-based Century Bank.