by Calculated Risk on 5/08/2010 08:30:00 AM

From Bloomberg: EU to Set Up Fund to Prevent Spread of Greek Crisis

European leaders agreed to set up an emergency fund ... European officials declined to disclose the size of the stabilization fund, to be made up of money borrowed by the European Union’s central authorities with guarantees by national governments. Finance ministers will meet at 3 p.m. tomorrow in Brussels to flesh out the details. A press briefing is scheduled for 6 p.m.
...
“When the markets re-open Monday, we will have in place a mechanism to defend the euro,” French President Nicolas Sarkozy said. “If you don’t think that’s significant, you haven’t been to many EU summits.”

Promises, promises ...

by Calculated Risk on 5/07/2010 11:09:00 PM

Note: This earlier post has summaries of three major stories today: Europe, market glitch, and employment report.

This is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for May 7, 2010.

Changes and comments from surferdude808:

This week the Unofficial Problem Bank List stands at 727 institutions with assets of $366.5 billion compared with 722 institutions with assets of $349.8 billion last week.

There are six removals including four failures -- 1st Pacific Bank of California (Ticker: FPBN), The Bank of Bonifay, Towne Bank of Arizona (Ticker: TWNE), and Access Bank. The other two removals were the terminations of Supervisory Agreements by the OCC against Mountain West Bank, National Association, (Ticker: MTWF), and Pikes Peak National Bank. However, it is likely these terminations will reappear when the OCC releases its actions for April as many times the OCC will replace a Supervisory Agreement with a Consent Order.

There were 11 additions this week including Carolina First Bank, Greenville, SC ($11.9 billion Ticker: TSFG); Metro Bank, Lemoyne, PA ($2.1 billion Ticker: METR); North American Savings Bank, F.S.B., Grandview, MO ($1.5 billion Ticker: NASB); and Tower Bank & Trust Company, Fort Wayne, IN ($681 million Ticker: TOFC).

Still on track for 1,000 banks by the end of the year ...

by Calculated Risk on 5/07/2010 08:09:00 PM

Intermittent fail
Stopping and starting Friday's
A long road ahead.

Like hollowed pumpkins
Scooped out, carved up, value-less
Fearful faces left.
by Soylent Green is People
From the FDIC: Commerce Bank of Arizona, Tucson, Arizona, Assumes All of the Deposits of Towne Bank of Arizona, Mesa, Arizona

Towne Bank of Arizona, Mesa, Arizona, was closed today by the Arizona Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of March 31, 2010, Towne Bank of Arizona had approximately $120.2 million in total assets and $113.2 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $41.8 million. Towne Bank of Arizona is the 67th FDIC-insured institution to fail in the nation this year ...

From the FDIC: City National Bank, Los Angeles, California, Assumes All of the Deposits of 1st Pacific Bank of California, San Diego, California

1st Pacific Bank of California, San Diego, California, was closed today by the California Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver....

As of March 31, 2010, 1st Pacific Bank of California had approximately $335.8 million in total assets and $291.2 million in total deposits. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $87.7 million. .... 1st Pacific Bank of California is the 68th FDIC-insured institution to fail in the nation this year, and the fifth in California.

That makes four today.

by Calculated Risk on 5/07/2010 07:56:00 PM

A break from our usual Friday afternoon custom ... there were three major stories today.

1) On Europe: there is a reasonable chance of a major announcement this weekend. Earlier today there were rumors of a €600 billion loan facility for European banks. One key analyst thinks the Fed might re-open the dollar swap lines for Europe - one, or both, or something else could be announced on Sunday.

Tonight, Bloomberg is reporting: EU to Craft Financial Backstop to Prevent Spread of Crisis

Leaders of the 16 countries sharing the currency said finance ministers will meet tomorrow to hash out the details of a “stabilization mechanism to preserve the financial stability in Europe.”

Krugman has the best line: O Nao!

I really really hope the ECB staff are huddling right now ... Otherwise Anno Domini 2010 is shaping up to be Anno Domino instead.

2) On the Stock Market: From the SEC: Statement of the Securities and Exchange Commission and the Commodity Futures Trading Commission

“We are continuing to review the unusual trading activity that took place briefly yesterday afternoon to pinpoint its cause and contributing factors.
...
“Our market oversight units are reviewing trading and market data from the exchanges, self regulatory organizations and market participants to examine yesterday's unusual trading activity. We are scrutinizing the extent to which disparate trading conventions and rules across various markets may have contributed to the spike in volatility.

“We are devoting significant resources and expertise to this effort.

“As we determine the cause and contributing factors, we will make our findings and any recommendations public. ...

The causes of the weird price changes still haven't been determined.

3) Employment Report: Usually the big story of the day would be the 290K (224K ex-Census) increase in payroll employment. Here were my earlier posts:

April Employment Report: 290K Jobs Added, 9.9% Unemployment Rate for graphs of unemployment rate and a comparison to previous recessions.

Employment-Population Ratio, Part Time Workers, Unemployed over 26 Weeks

Temporary Help and Diffusion Index

by Calculated Risk on 5/07/2010 06:37:00 PM

Intravenous cash
Injections of capital
Could not save this bank

One thousand point drop
Ten thousand banks may yet fail
Is it time for gold?
by Soylent Green is People

From the FDIC: First Federal Bank of Florida, Lake City, Florida, Assumes All of the Deposits of The Bank of Bonifay, Bonifay, Florida

Bank of Bonifay, Bonifay, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of March 31, 2010, The Bank of Bonifay had approximately $242.9 million in total assets and $230.2 million in total deposits. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $78.7 million. ... The Bank of Bonifay is the 65th FDIC-insured institution to fail in the nation this year, and the tenth in Florida. The last FDIC-insured institution closed in the state was Riverside National Bank of Florida, Fort Pierce, on April 16, 2010.

From the FDIC: Prinsbank, Prinsburg, Minnesota, Assumes All of the Deposits of Access Bank, Champlin, Minnesota

Access Bank, Champlin, Minnesota, was closed today by the Minnesota Department of Commerce, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of March 31, 2010, Access Bank had approximately $32.0 million in total assets and $32.0 million in total deposits. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $5.5 million..... Access Bank is the 66th FDIC-insured institution to fail in the nation this year, and the fifth in Minnesota. The last FDIC-insured institution closed in the state was State Bank of Aurora, Aurora, on March 19, 2010.