by Calculated Risk on 7/24/2009 09:18:00 PM

It looks like seven was the winner barring a late seizure ... here are some comments from Buffett on CIT this morning:

by Calculated Risk on 7/24/2009 06:10:00 PM

Jones, Bibb, North Metro
Gwinnett, North Fulton, Houston,
A Cat. Six Fail Storm
by Soylent Green is People
From the FDIC: State Bank and Trust Company, Pinehurst, Georgia, Assumes All of the Deposits of the Six Bank Subsidiaries of Security Bank Corporation, Macon, Georgia

The six bank subsidiaries of Security Bank Corporation, Macon, Georgia, were 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 State Bank and Trust Company, Pinehurst, Georgia, to assume all of the deposits of the six bank subsidiaries of Security Bank Corporation.

The six banks involved in today's transaction are: Security Bank of Bibb County, Macon, GA, with $1.2 billion in total assets and $1 billion in deposits; Security Bank of Houston County, Perry, GA, with $383 million in assets and $320 million in deposits; Security Bank of Jones County, Gray, GA, with $453 million in assets and $387 million in deposits; Security Bank of Gwinnett County, Suwanee, GA, with $322 million in assets and $292 million in deposits; Security Bank of North Metro, Woodstock, GA, with $224 million in assets and $212 million in deposits; and Security Bank of North Fulton, Alpharetta, GA, with $209 million in assets and $191 million in deposits.
...
As of March 31, 2009, the six banks had total assets of $2.8 billion and total deposits of approximately $2.4 billion. In addition to assuming all of the deposits of the failed bank, State Bank and Trust Company will acquire $2.4 billion in assets.
...
The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $807 million. ... The failure of the six banks brings the nation's total number this year to 64, and the total for Georgia to 16. The last FDIC-insured institution to be closed in the state was First Piedmont Bank, Winder, on July 17, 2009.

That makes seven today ...

by Calculated Risk on 7/24/2009 05:47:00 PM

Years of poor judgment
Bankers caught breaking their trust
"Acting stupidly"
by Soylent Green is People
From the FDIC: Evans Bank, National Association, Angola, New York, Assumes All of the Deposits of Waterford Village Bank, Clarence, New York

Waterford Village Bank, Clarence, New York, was closed today by the New York State Banking Department, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of March 31, 2009, Waterford Village Bank had total assets of $61.4 million and total deposits of approximately $58 million. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.6 million. ... Waterford Village Bank is the 58th FDIC-insured institution to fail in the nation this year, and the first in New York. The last FDIC-insured institution to be closed in the state was Reliance Bank, White Plains, March 19, 2004.

It is Friday and New York is on the FDIC map (not counting Lehman, Bear Stearns, etc.)

by Calculated Risk on 7/24/2009 04:00:00 PM

Both Corus and Guaranty Bank (Texas) are on the mat being counted out.

Financial Guaranty has even agreed to be seized.

Apparently Corus bidders have a couple more weeks.

Click on graph for larger image in new window.

The first graph shows the S&P 500 since 1990.

The dashed line is the closing price today.

The S&P 500 is up 44.7% from the bottom (303 points), and still off 37.4% from the peak (586 points below the max).

This puts the recent rally into perspective. The S&P 500 first hit this level in Sept 1997; about 12 years ago.

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

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

by Calculated Risk on 7/24/2009 01:50:00 PM

From the NY Times: California Pension Fund Hopes Riskier Bets Will Restore Its Health (ht several)

[Joseph A. Dear, the fund’s new head of investments] wants to embrace some potentially high-risk investments in hopes of higher returns. He aims to pour billions more into beaten-down private equity and hedge funds. Junk bonds and California real estate also ride high on his list. And then there are timber, commodities and infrastructure.

That’s right, he wants to load up on many of the very assets that have been responsible for the fund’s recent plunge.

The post title is an old gambling saying. Actually now is probably a better time to buy some of these assets than a few years ago.