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BUSINESS
By Herb Greenberg HTC and Herb Greenberg HTC,Chronicle Features | April 12, 1991
Here's a nutty notion: Bank failure as a bullish stock-market indicator.Don't laugh!That's how come respected banking expert Tracy Herrick, a director and adviser of San Francisco-based Anderson Capital Management, turned bullish on the market in early January, days before the powerful rally began.He told clients in a published report to start loading up on stocks the day Bank of New England officially failed, saying that bank calamities have been a reliable buy signal in the past.Just look at the explosion in stock prices that occurred shortly after Continental Illinois Bank ran into trouble in 1984, or after the one-two punch in 1982 of Chase Manhattan's Mexico bond crisis and the flop of Oklahoma's Penn Square.
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NEWS
By Hanah Cho, The Baltimore Sun | April 27, 2012
State banking regulators closed two Maryland banks Friday, the first two bank failures in the state since 2010. The Maryland Commissioner of Financial Regulation shut down the Bank of the Eastern Shore in Cambridge and appointed the Federal Deposit Insurance Corporation as receiver. The FDIC created the Deposit Insurance National Bank of Eastern Shore to allow customers to access their deposits until May 25. The state financial commissioner also closed HarVest Bank of Maryland in Gaithersburg, whose deposits and other assets were acquired by Sonabank in McLean, Va. HarVest's four branches will reopen during normal business hours as Sonabank's branches.
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NEWS
By DAN BERGER | February 8, 1991
Forget the war, the depression, bank failures, the deficit and concentrate on what really matters: our governor's state of mind.
BUSINESS
By Eileen Ambrose, The Baltimore Sun | August 18, 2011
Capital Bank, National Association of Rockville has agreed to assume the deposits and buy nearly all the assets of a Pennsylvania bank that was closed by regulators Thursday, according to the Federal Deposit Insurance Corp. Pennsylvania regulators closed Public Savings Bank in Huntingdon Valley, Pa., making it the first bank failure in that state this year but the 65th in the nation, the FDIC said. Public Savings had about $45.8 million in deposits and $46.8 million in assets at the end of June.
BUSINESS
By American Banker | March 18, 1993
WASHINGTON -- The Federal Deposit Insurance Corp. made more money than it spent last year, for its first surplus in five years.Unofficial figures show that deposit insurance premiums were about $6 billion, while bank failures cost the agency about $5 billion. The annual surplus -- of $1 billion -- is expected to rise to about $1.5 billion this year.In a year when banks earned record profits, the FDIC reduced its problem-bank list by 25 percent, to 863. Only 120 banks, with $46 billion in assets, failed last year -- about half what the agency predicted.
BUSINESS
By Peter H. Frank | September 22, 1991
Bank depositors all know they are protected up to $100,000 per account. For many, that's the only piece of security they have as they watch the banking industry writhe through wrenching losses and pending mergers.But what happens if the dwindling Bank Insurance Fund, or BIF, runs dry?"When we run out of money, we can print some more," quipped Caryl A. Austrian, a spokeswoman for the Federal Deposit Insurance Corp., the agency that oversees the insurance fund.The most recent projection from the FDIC is that the fund balance will fall to between $1 billion and $3 billion by the end of the year, depending on the size and number of bank failures in the next few months.
BUSINESS
By Chicago Tribune | October 11, 1990
WASHINGTON -- In an ominous forecast for taxpayers, the Bush administration has quietly estimated that the dwindling federal fund that insures bank deposits is much closer to insolvency -- and a publicly financed bailout -- than had been generally thought.The administration's projections imply a continuation of bank failures into the mid-1990s and predict that the Federal Deposit Insurance Corp.'s bank insurance fund will lose $6.1 billion in the next three years, even if insurance premiums are doubled.
BUSINESS
By Michael Quint and Michael Quint,New York Times News Service | March 26, 1992
After years of protecting large deposits from loss in bank failures, the Federal Deposit Insurance Corp. has changed its policy, and is now frequently protecting individual and business depositors only up to the insured maximum of $100,000 for each insured account. Hundreds of bank depositors have been unpleasantly surprised by the change.In theory, uninsured bank depositors have always been at risk when a bank fails, but until this year, the losses were infrequent because the FDIC usually found another bank to take over all deposits of the failed bank.
NEWS
February 7, 1991
The Treasury Department's proposals for restructuring the nation's banking system are as thick as the telephone book, so it will be a long time before Congress works its way through this legislation. That's just as well, since the task of reforming the nation's banking system is not one that should be undertaken lightly. After all, the basis for the present system, now frayed and tattered, was the rash of bank failures during the Great Depression that brought financial devastation to millions of American families.
BUSINESS
By Cox News Service | February 13, 1991
WASHINGTON -- The banking industry proposed yesterday a $10 billion plan to reinforce the nation's unsteady deposit insurance fund as concern grows over the government's ability to cover the increasing number of failed banks.The proposal, released by the American Bankers Association and other trade associations, calls for the borrowing of up to $10 billion to bolster the insurance fund that covers bank deposits.Critics said the plan could fall short of what is needed to replenish the insurance fund and ultimately force taxpayers to subsidize bank bailouts.
NEWS
July 22, 2010
A reader took Jules Witcover to task for suggesting that the current recession can be blamed on actions by President George W. Bush ("Blaming Bush no longer works for Obama," July 14) and suggests that Democrats were also complicit. I feel strongly that the 2007 recession will always be considered George Bush's, as the 1929 Depression is still considered Herbert Hoover's even after 80 years. After all, it was the deregulation of banks by President Bush and failure to take timely action by Alan Greenspan of the Federal Reserve that allowed Wall Street to take irresponsible actions that were primary contributors to the housing and bank failures.
NEWS
By Brent Jones and Brent Jones,brent.jones@baltsun.com | August 30, 2009
An advertisement for a low interest rate brought Colette Searol to Bradford Bank in Towson yesterday morning, where instead of hearing a pitch by bank officials detailing the deal, she received a question-and-answer sheet explaining the company's failure. Searol had planned to open an account but decided against it when she found out the rate she was looking for was no longer offered, in large part because Bradford no longer exists. "When I saw the parking lot full on a Saturday morning, and there was an employee out there with a FDIC tag, I immediately thought that this was what was going on," she said.
BUSINESS
April 11, 2009
Starbucks to close 7 Maryland stores Starbucks Coffee Company said this week it is closing 195 stores across the country, including seven in Maryland, as consumers worried about the economy continue to cut back on luxuries such as gourmet coffee. In the Baltimore area, the Seattle-based company will close a store at Westfield Annapolis mall as well as the location at 300 N. Charles St. in downtown Baltimore. Starbucks has more than 200 stores in Maryland. Andrea K. Walker China's reserves at $1.9 trillion BEIJING : China's central bank says its foreign exchange reserves rose 16 percent year-on-year to $1.954 trillion by the end of March.
BUSINESS
By Eileen Ambrose and Eileen Ambrose,eileen.ambrose@baltsun.com | November 21, 2008
FDIC Chairwoman Sheila Bair said yesterday in Baltimore that the one step the federal government still needs to take in this financial crisis is to stop unnecessary foreclosures. And it can do so, she said, by spending about $24 billion of the bank bailout money on a program to modify troubled loans. Bair, breaking with the Treasury Department, has been advocating for a program to keep homeowners out of foreclosure by modifying the interest rate or other terms of their mortgages. As part of that, the government would guarantee a portion of the loans in case the homeowner later defaulted.
NEWS
By Jamie Smith Hopkins and Jamie Smith Hopkins,jamie.smith.hopkins@baltsun.com | October 1, 2008
Wall Street might be in turmoil, but plastic-container manufacturer Maryland Thermoform Corp. is having a great year. Forget contraction - the Baltimore company is looking into equipment and software upgrades. The thing is, those purchases require financing. That's where Wall Street's troubles become Maryland Thermoform's problem. As major banks and investment houses fail, small businesses are finding financing harder to get - never mind if they're growing and didn't have anything to do with mortgages, credit-default swaps or any of the complex financial vehicles bringing big companies down.
BUSINESS
By New York Times News Service | September 26, 2008
Washington Mutual, the giant lender that came to symbolize the excesses of the mortgage boom, was seized by federal regulators last night in a bid to prevent the largest bank failure in American history. Regulators simultaneously brokered an emergency sale of virtually all of Washington Mutual to JPMorgan Chase. The remainder of WaMu, the nation's largest savings and loan, will be operated by the government. Shareholders and some bondholders will be wiped out. WaMu deposits are guaranteed by the Federal Deposit Insurance Corp.
BUSINESS
By Los Angeles Times | September 28, 1990
WASHINGTON -- The board of directors of the Federal Deposit Insurance Corp., concerned about the deteriorating health of the banking system, voted yesterday to raise by more than 60 percent the deposit insurance premiums commercial banks must pay.The unanimous vote by the five-member board to raise the premiums for next year to 19.5 cents per $100 of deposits came after an FDIC report yesterday showed that the government's bank insurance fund is suffering greater...
BUSINESS
January 4, 1994
Accounting firm to use LotusIn a significant endorsement of Lotus Development's business-office software, Coopers & Lybrand, the accounting and consulting firm, has decided to adopt Lotus' products for use on all of the company's personal computers.Although the initial order is worth only about $10 million to the Lotus Development Corp., and analysts said the deal might eventually total $20 million or so, it is Lotus' biggest single-customer agreement yet. And it could have a broad impact because Coopers is an influential business consultant on the corporate use of information technology.
BUSINESS
By Tom Petruno and Tom Petruno,Los Angeles Times | July 27, 2008
Are things really that bad? Is this the worst situation we've faced since the Great Depression? Is there any way out? Those questions must be asked thousands of times a day in private and public conversations about the financial system and the economy. The Internet is filled with often bitter commentaries insisting that this time America has dug a hole from which there's no escape. That kind of talk is always out there, but it is becoming increasingly pervasive. It's also understandable given what the nation has suffered through in the past year: tumbling home prices, soaring mortgage defaults, the worst stock market decline since 2000-2002 and record oil prices.
NEWS
July 15, 2008
Every Christmas, millions of Americans get a close look at the pain and hysteria of a run on a bank when George Bailey contemplates suicide after panicked customers demand their money from his tiny savings and loan in the Frank Capra classic It's a Wonderful Life. In the movie, George's friends and neighbors raise the money to pay depositors, and the bank is saved. Rules established to insure deposits and limit risks have made recent, real-life runs less painful. Now, investors have a different reason to be afraid.
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