Integrity Bank, based in Georgia, became the 10th bank this year to be taken in to receivership by the FDIC. A small bank, with about $1 billion in managed assets, Integrity is the latest victim of the mortgage market meltdown and credit crisis after a series of aggressive bets on loans in the Atlanta market.From Reuters:U.S. regulators on Friday took over Integrity Bank, … [Read more...] about FDIC takes over bank #10 “Integrity”
Archives for August 2008
Lehman Brothers, the ailing Wall Street I-bank, is cutting up to 1,500 jobs in the face of the ongoing credit crisis. Not surprising as Lehman made the biggest bets in subprime during the boom and has massive exposure to further losses on its loan portfolio.From the Wall Street Journal (subscription req'd):An investment bank announcing layoffs in the current … [Read more...] about Lehman to cut 1,500 jobs
Thornburg Mortgage, the company famous for buying prime (then) jumbo mortgages (above $417,000) is struggling to survive. The company's CEO calls the situation "precarious" and they continue to try to fight off the effects of a $3.3 billion first quarter loss and a secondary market that's all but vanished.Thornburg is classic proof that Bernanke's containment theory was … [Read more...] about Thornburg on its last legs?
The banking sector had its worst quarterly performance in nearly twenty years as profits fell 86.5% across the sector. The weakening has forced the FDIC to begin replenishing the deposit insurance reserve this fall. The major loss in profits was tied to loan loss reserve provisions which require banks to keep additional cash on hand due to poor loan performance.From Market … [Read more...] about Banking profits down 87%