Word: fdic
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...million. Many banks are now teetering on the brink of collapse. At the end of July, the Federal Deposit Insurance Corporation listed 540 "problem" banks, ranging from small state-chartered ones with too many weak agricultural loans to nationally chartered banks with bad business loans. Among the 540, the FDIC secretly lists dozens as likely to fail unless they are soon merged with healthier financial institutions. Says John Downey, chief national bank examiner for the Comptroller of the Currency: "The number is the highest I've ever seen...
...longer does a bank failure result in angry customers milling outside locked doors, or widows and orphans being stripped of their life savings. Closings have become so routine that agencies like the FDIC perform them with robot-like precision. Typically, authorities move in after business hours on Friday and freeze accounts. By the following Monday, they have either paid off the depositors or allowed another bank to assume control. But such transitions are not without cost. The FDIC spent $870 million last year, mostly to compensate private financial institutions for taking over bad loans. Moreover, bank shareholders can see their...
U.A.B. had been on the "problem list" of the Federal Deposit Insurance Corporation throughout 1982. In November more than 200 federal bank examiners swept into all five of Butcher's banks, as well as 24 smaller banks controlled by his brother C.H. Says Stephen Woodrough, the FDIC regional counsel in Atlanta: "We wanted to see how much bad paper was really there. The situation at U.A.B. was very, very grave indeed." The FDIC concluded that $90 million in loans should be written...
When U.A.B. announced in January that its 1982 losses were only $2.3 million, FDIC officials demanded that the bank issue a new report showing higher losses; U.A.B. 's board refused. Last week Adams determined from his own audit that the bank was in solvent. On its last day of business, between $17 million and $25 million in deposits were withdrawn in a run on the U.A.B. (The other 28 banks controlled by the brothers were judged to be solvent. Nevertheless, worried customers have with drawn several million dollars from C.H.'s Southern Industrial Banking Corp...
Thanks to the acquisition, U.A.B.'s 135,000 depositors will not lose a penny. First Tennessee will also absorb up to $86.5 million in uncollectible U.A.B. loans. Any more than that will be covered by the FDIC, which believes the total may reach $160 million. The biggest loser is Jake Butcher; he owned $15 million in U.A.B. stock that is now worthless. The flamboyant entrepreneur, who five years ago was Tennessee's Democratic candidate for Governor, and who was the driving force behind last year's Knoxville World's Fair, has clearly lost more than...