by Calculated Risk on 4/24/2009 06:38:00 PM

Heritage failed,
A legacy for our kids.
Debt slaves forever.
by Soylent Green is People
From the FDIC: Level One Bank, Farmington Hills, Michigan, Assumes All of the Deposits of Michigan Heritage Bank, Farmington Hills

Michigan Heritage Bank, Farmington Hills, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Level One Bank, Farmington Hills, Michigan, to assume all of the deposits, excluding those from brokers, of Michigan Heritage.
...
As of December 31, 2008, Michigan Heritage had total assets of approximately $184.6 million and total deposits of $151.7 million. Level One paid a premium of 1.16 percent to acquire the deposits of Michigan Heritage.
...
The FDIC estimates that the cost to the Deposit Insurance Fund will be $71.3 million. Level One's acquisition of all the deposits of Michigan Heritage was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to alternatives. Michigan Heritage is the 27th bank to fail in the nation this year and the first in the state. The last bank to fail in Michigan was Main Street Bank, Northville, on October 10, 2008.

Two down today.

by Calculated Risk on 4/24/2009 04:50:00 PM

Update: Summary of posts today:

Two posts on New Home sales: New Home Sales: 356 Thousand SAAR in March and Home Sales: The Distressing Gap

Stress Test white paper from the Federal Reserve. This just outlined how the tests are being performed.

A large credit union failed, and one small FDIC insured bank (the 26th this year).



Here is the CNBC feed.

And a live feed from C-SPAN.

by Calculated Risk on 4/24/2009 04:47:00 PM

Fiduciary
A strange word to bankers
Result: ...takeover.
by Soylent Green is People

From the FDIC: Bank of North Georgia, Alpharetta, Georgia, Assumes All of The Deposits of American Southern Bank, Kennesaw, Georgia

American Southern Bank, Kennesaw, Georgia, was closed today by the Georgia Department of Banking and Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of North Georgia, Alpharetta, Georgia, to assume all of the deposits, excluding those from brokers, of American Southern Bank.
...
As of March 30, 2009, American Southern Bank had total assets of approximately $112.3 million and total deposits of $104.3 million. Bank of North Georgia paid a premium of 0.003 percent to acquire the deposits of American Southern Bank.
...
In addition to acquiring $55.6 million of the failed bank's deposits, Bank of North Georgia agreed to purchase approximately $31.3 million in assets. The FDIC will retain any remaining assets for later disposition.

The FDIC estimates that the cost to the Deposit Insurance Fund will be $41.9 million. Bank of North Georgia's acquisition of all the deposits of American Southern Bank was the "least costly" resolution for the FDIC's Deposit Insurance Fund compared to alternatives. American Southern Bank is the 26th bank to fail in the nation this year and the fifth in the state. The last bank to fail in Georgia was Omni National Bank, Atlanta, on March 29.

It is Friday!

by Calculated Risk on 4/24/2009 04:00:00 PM

Update: C-SPAN is showing the Geithner press conference at 4:45 PM ET:

Here is the CNBC feed.

And a live feed from C-SPAN.

Here is something to discuss while we wait for Treasury Secretary Geithner's press conference and the FDIC ... (although a significant credit union was already seized today).

Click on graph for larger image in new window.

This graph is from Doug Short of dshort.com (financial planner): "Four Bad Bears".

These are the four worst S&P 500 / DOW bear market in the U.S.

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

For a comparison to the Nikkei, and NASDAQ crashes, see Doug's: "The Mega-Bear Quartet and L-Shaped Recoveries".

And here is another update on the Chrysler first lien negotiations. Note: I have no idea why this is so public.

The diagram shows the offers and counteroffers from the banks.

From the WSJ: Chrysler's Lenders to Make New Offer on Debt

The lending group has proposed cutting the $6.9 billion Chrysler owes them down to $3.75 billion, according to a person familiar with the offer.
...
The lenders decided not to lower the 40% equity stake in Chrysler they are seeking ... The creditors also dropped their request for $1 billion of preferred stock in Chrysler and that Fiat SpA put $1 billion of cash into Chrysler

Just 6 days to go ...

by Calculated Risk on 4/24/2009 03:17:00 PM

Press Release: Eastern Financial Florida Credit Union Placed In Conservatorship (ht Will)

The National Credit Union Administration (NCUA) today assumed control of the operations of Eastern Financial Florida Credit Union, a state-chartered, federally insured credit union headquartered in Miramar, Florida.
...
Eastern Financial Florida Credit Union was originally chartered in 1937 and today serves Broward, Miami-Dade, Palm Beach, Hillsborough, Pinellas counties and the Jacksonville area. The credit union has approximately $1.6 billion in assets and just over 200,000 members.

The National Credit Union Administration (NCUA) is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government...

An early start to BFF (bank failure friday).