U.S. Federal Regulators Close Four Failed Banks

[News_Editor]

U.S. federal regulators close four failed banks < br />

2012-06-10 07:56:53 GMT+7 (ICT)

WASHINGTON, D.C. (BNO NEWS) -- Federal regulators on Friday evening closed four banks in Oklahoma, Illinois, South Carolina and North Carolina, bringing the total number of bank failures in the United States so far this year to 28.

The largest bank to be closed on Friday was the Waccamaw Bank which had its headquarters in the city of Whiteville in North Carolina. The bank, which had a total of sixteen branches across North and South Carolina, was closed by the North Carolina Office of the Commissioner of Banks after its regular closing time.

After the closing, the Federal Deposit Insurance Corporation (FDIC) said it immediately entered into a purchase and assumption agreement with the First Community Bank in Bluefield, Virginia, to assume all of the deposits of the Waccamaw Bank. As of March, the Maccamaw Bank had approximately $533.1 million in total assets and $472.7 million in total deposits.

Most customers should see no or little service disruption despite the closure of the institution as the sixteen branches of Waccamaw Bank will reopen on Monday as branches of the First Community Bank, and all depositors of Waccamaw Bank will automatically become depositors of First Community Bank.

All of the services of the failed bank, including checks, ATM and debit cards, will remain active. "Checks drawn on the bank will continue to be processed," the FDIC said in a statement which also applies to the three other banks which were closed. "Loan customers should continue to make their payments as usual."

The other banks closed by federal regulators were the First Capital Bank based in Kingfisher, Oklahoma, with only one branch; the Carolina Federal Savings Bank based in Charleston, South Carolina, with two branches; and the Farmers and Traders State Bank based in Shabbona, Illinois, with also two branches. All the banks were assumed by another bank, ensuring continuing service for customers.

The FDIC estimated that the combined cost of all four bank failures to the Deposit Insurance Fund (DIF) will be around $80.8 million, but said it was the least costly resolution for the DIF compared to other alternatives. Friday's closures bring the total number of U.S. bank failures so far this year to 28. There were 91 bank failures in 2011 and 157 bank failures in 2010.

-- © BNO News All rights reserved 2012-06-10

[ralphlsasser]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

[impulse]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

Yeah, it's sad how long it takes to stop a train set in motion by your predecessor at 100 miles an hour down a hill toward disaster.

Especially when all of your predecessor's buddies are bound and determined to sabotage you no matter what it costs the country...

Edited June 10, 2012 by impulse

[visionchaser45]

I guess these banks were not "too big to fail." This a big step toward socialism in America and the nationalization of independent banks. It is time we played Taps for the America we once knew. The future is no longer ours.

[folium]

I guess these banks were not "too big to fail." This a big step toward socialism in America and the nationalization of independent banks. It is time we played Taps for the America we once knew. The future is no longer ours.

Wow from the collapse of 4 tiny banks (with a grand total of 21 branches) out of over 8,000 banks nationwide (with approximately 100,000 branches) to the socialistic collapse of the world's richest economy. Time for another cup of java me thinks!

[chuckd]

I guess these banks were not "too big to fail." This a big step toward socialism in America and the nationalization of independent banks. It is time we played Taps for the America we once knew. The future is no longer ours.

Wow from the collapse of 4 tiny banks (with a grand total of 21 branches) out of over 8,000 banks nationwide (with approximately 100,000 branches) to the socialistic collapse of the world's richest economy. Time for another cup of java me thinks!

...and perhaps time for others to take some valium.

[GentlemanJim]

The largest bank to be closed on Friday was the Waccamaw Bank which had its headquarters in the city of Whiteville in North Carolina. The bank, which had a total of sixteen branches across North and South Carolina, was closed by the North Carolina Office of the Commissioner of Banks after its regular closing time.

After the closing, the Federal Deposit Insurance Corporation (FDIC) said it immediately entered into a purchase and assumption agreement with the First Community Bank in Bluefield, Virginia, to assume all of the deposits of the Waccamaw Bank. As of March, the Maccamaw Bank had approximately $533.1 million in total assets and $472.7 million in total deposits.

Most customers should see no or little service disruption despite the closure of the institution as the sixteen branches of Waccamaw Bank will reopen on Monday as branches of the First Community Bank, and all depositors of Waccamaw Bank will automatically become depositors of First Community Bank.

I would love to know what was really wrong with the Waccamaw bank, with a billion in assets and cash and a service that does not appear to have been at fault or disrupted? Didn't the Fed like them?

[chuckd]

The largest bank to be closed on Friday was the Waccamaw Bank which had its headquarters in the city of Whiteville in North Carolina. The bank, which had a total of sixteen branches across North and South Carolina, was closed by the North Carolina Office of the Commissioner of Banks after its regular closing time.

After the closing, the Federal Deposit Insurance Corporation (FDIC) said it immediately entered into a purchase and assumption agreement with the First Community Bank in Bluefield, Virginia, to assume all of the deposits of the Waccamaw Bank. As of March, the Maccamaw Bank had approximately $533.1 million in total assets and $472.7 million in total deposits.

Most customers should see no or little service disruption despite the closure of the institution as the sixteen branches of Waccamaw Bank will reopen on Monday as branches of the First Community Bank, and all depositors of Waccamaw Bank will automatically become depositors of First Community Bank.

I would love to know what was really wrong with the Waccamaw bank, with a billion in assets and cash and a service that does not appear to have been at fault or disrupted? Didn't the Fed like them?

According to the article they only had assets of $533.1 Million and deposit liabilities of $472.7 Million. In the banking industry, customer's deposits are a liability of the bank, not an asset.

Customer's loans are considered an asset and there may have been many of them in default so the asset figure might have been overstated. The article does not say.

[Colin Yai]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

Yeah, it's sad how long it takes to stop a train set in motion by your predecessor at 100 miles an hour down a hill toward disaster.

Especially when all of your predecessor's buddies are bound and determined to sabotage you no matter what it costs the country...

Of course the economy was on the slide long before Obama took over , the mistake Obama made (IMHO) he said he had all the answers (yes we can) when it was well nigh "mission Impossible"and he failed miserably to fulfill his promises and sank ever deeper into the mire Edited June 10, 2012 by Colin Yai

[Steely Dan]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

Yeah, it's sad how long it takes to stop a train set in motion by your predecessor at 100 miles an hour down a hill toward disaster.

Especially when all of your predecessor's buddies are bound and determined to sabotage you no matter what it costs the country...

Of course the economy was on the slide long before Obama took over , the mistake Obama made (IMHO) he said he had all the answers (yes we can) when it was well nigh "mission Impossible"and he failed miserably to fulfill his promises and sank ever deeper into the mire

He also said strike up the band whilst accelerating at top speed towards the iceberg.

[w11guy]

I guess these banks were not "too big to fail." This a big step toward socialism in America and the nationalization of independent banks. It is time we played Taps for the America we once knew. The future is no longer ours.

Wow from the collapse of 4 tiny banks (with a grand total of 21 branches) out of over 8,000 banks nationwide (with approximately 100,000 branches) to the socialistic collapse of the world's richest economy. Time for another cup of java me thinks!

USA has been a socialist country for a very long time.

[maidu]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

You can try blaming it on Obama, but that's a loooooong stretch.

American is addicted to borrowing, as are all other countries' people and governments, business people and scammers. Many large corporations are compelled to take out large loans each week - just to meet workers' salaries. US dollars are issued on a debt basis, as is every other financial function. When people learn to 'pay as they go', then debt dissolves, and solvency rules. Ronald Reagan's two terms (among other things) saddled the US with gargantuan debt. In contrast, Clinton balanced the budget. After Clinton, came two term Bush Jr. (another Republican who pretended he was a 'supply sider' but was actually a 'shovel tens of billions on to corporate laps' like his Republican brethren.

Personally, I haven't had any debt for decades, and it feels ok. Plus, I don't get one penny of hand-outs, pensions, SS or anything from any government. How do I do it? Thrift and hard work. I pay as I go. If US or European countries could embrace that concept, none of the 'sky is falling' scenarios would be happening in those debt-ridden places.

[edko]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

You can try blaming it on Obama, but that's a loooooong stretch.

American is addicted to borrowing, as are all other countries' people and governments, business people and scammers. Many large corporations are compelled to take out large loans each week - just to meet workers' salaries. US dollars are issued on a debt basis, as is every other financial function. When people learn to 'pay as they go', then debt dissolves, and solvency rules. Ronald Reagan's two terms (among other things) saddled the US with gargantuan debt. In contrast, Clinton balanced the budget. After Clinton, came two term Bush Jr. (another Republican who pretended he was a 'supply sider' but was actually a 'shovel tens of billions on to corporate laps' like his Republican brethren.

Personally, I haven't had any debt for decades, and it feels ok. Plus, I don't get one penny of hand-outs, pensions, SS or anything from any government. How do I do it? Thrift and hard work. I pay as I go. If US or European countries could embrace that concept, none of the 'sky is falling' scenarios would be happening in those debt-ridden places.

Will not try to argue, however, it was not Bush 2 that directed Fannie and Freddie to accelerate loans to low income people in the attempt to expand home ownership, that was Bill "Cigar" Clinton. It was under the Clinton admin that the 3% and 0% down payments with adjustable mortgages were launched.

I bought a house at the exact top of the previous housing bubble (Sept 1981) and was underwater until 1997 which is when the most recent housing bubble started. Paid $91,950 for that place and sold it in 2005 for $238,000. So, under which administration did the housing bubble begin?

Don't misunderstand; not promoting either Democrat or Republican as I like Ron Paul and like you, I have been debt free since 1997 having paid off that mortgage that needed 20% down to qualify.

The argument about taking on more mortgage debt to reduce income taxes is the biggest crock of crap ever foisted on the general public. Do the math, you'll always be ahead with paying taxes on the money that would have went to interest and saving the balance.

[koheesti]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

Yeah, it's sad how long it takes to stop a train set in motion by your predecessor at 100 miles an hour down a hill toward disaster.

Especially when all of your predecessor's buddies are bound and determined to sabotage you no matter what it costs the country...

If only that were true. As early as 2003 the Bush Admin tried for tougher regulations on Fannie & Freddie but were blocked by the Dems (such as the infamous Rep. Barney Frank D-Mass). I'm not saying the Republicans didn't screw up. They did, and they paid for it in 2006 when they lost control of Congress - TWO YEARS before the economic collapse. The Democrats had been in control of both houses of Congress since the election of 2006 (including Senator Obama D-Ill). Since then, the Republicans have only been in charge of the House of Representatives for under 1.5 years. In that time (and all of Obama's term), they have been the only ones passing job bills and budgets. The Dems have been the ones sabotaging the country. It's not surprising, really.

[Colin Yai]

[media=]

[/media] Lets all have a laugh ,after all there's nothing we can do is there! Edited June 11, 2012 by Colin Yai

[maidu]

If the four failed banks were deemed 'too big to fail' by the manipulators in Washington, the former Goldman Sach's execs (who hold top gov't finance positions) would have simply shoveled boatloads of cash on to their laps. Indeed, Bernacke and Paulson (yes, former Goldman Sachs execs, now running gov't financial matters) unloaded tens of billions of dollars of tax payers' cash on large banks, in 2008, ......EVEN WHEN SOME OF THE BANKS DIDN'T NEED OR WANT THE CASH.

That's the mindset of Wall Street insiders. They reward badly run businesses - if, like AIS or Goldman Sachs, they're deemed (by their multi-millionaire buddies) 'too big to fall.' In a sane world, badly run businesses would be allowed to fail, and better run businesses would thereby take over the niche.

In lieu of that, it's mildly refreshing that the four banks were allowed to die. The people mismanaging them don't die. They just dust themselves off (with more gov't grants, probably), and go out to start new banks.

Edited June 11, 2012 by maidu

[flying]

I pay as I go. If US or European countries could embrace that concept, none of the 'sky is falling' scenarios would be happening in those debt-ridden places.

If the US tried that there would be no unfunded wars, invasions, policing actions....actually not sure what they call them these days....Nor do I actually care anymore... Stick a fork in me I'm done in that regard

Like you I am happily living debt free with no handouts

[Pakboong]

None of us are really debt free. The US owes 5.9 times the actual money supply and that can never catch up. It will only get larger as money is created via debt. We technically are all on the hook for that $57 trillion which as of late, transcends borders.

[Colin Yai]

None of us are really debt free. The US owes 5.9 times the actual money supply and that can never catch up. It will only get larger as money is created via debt. We technically are all on the hook for that $57 trillion which as of late, transcends borders.

Quite true so instead of pontificating about the problem, lets have a laugh cos in the end there is naff all I or you out there can do anything about it ,and that my friends is the simple truth, of course the American members will have a vote on how the Country is run and by whom ,me?,as a "Limey" I'll just sit in the sidelines and watch with interest , although its fair to say I'm a staunch Republican at heart Edited June 11, 2012 by Colin Yai

[koheesti]

In a sane world, badly run businesses would be allowed to fail, and better run businesses would thereby take over the niche.

That's how I thought most of us were brought up in the USA and the reason many of us are left going &lt;deleted&gt;? over "too big to fail".

Then again, 30 years ago when there was a big "Buy American!" backlash against cheaper and better-made Japanese cars I thought at the time, "Isn't that the way it is supposed to work? If you want customers then you must provide a better product/service at a competitive price? So kudos to the Japanese for beating us at our own game. So, if you want customers to 'buy American, then build a better car". Over course, it wasn't seen that way by overpaid Unions hell bent on destroying the manufacturing competitiveness of the country in the interest of lining their own pockets. They succeeded and now we are finding out that the USA is not too big to fail. [/anti-union rant]

[koheesti]

I pay as I go. If US or European countries could embrace that concept, none of the 'sky is falling' scenarios would be happening in those debt-ridden places.

Like you I am happily living debt free with no handouts

My debt is under $600. I keep a balance for two reasons:

1) I have an excellent credit rating (top 5%) even though I am pretty much poor and never buy anything more expensive than a plane ticket. Making regular payments on time over the years looks good to the credit bureaus. Not that I ever plan to need it but you never know.

2) I learned from once before if I get my debt down to zero, something in my head triggers a "oh, I can now afford ________" then before you know it my debt is up a few thousand. Although, that trip to Guam was worth it.

Anyway, I think our government is too far gone to operate like that. Besides, it's easier for a single person to control their spending than a country with over 310 million people pulling in all directions with different priorities.

[flying]

I pay as I go. If US or European countries could embrace that concept, none of the 'sky is falling' scenarios would be happening in those debt-ridden places.

Like you I am happily living debt free with no handouts

My debt is under $600. I keep a balance for two reasons:

1) I have an excellent credit rating (top 5%) even though I am pretty much poor and never buy anything more expensive than a plane ticket. Making regular payments on time over the years looks good to the credit bureaus. Not that I ever plan to need it but you never know.

2) I learned from once before if I get my debt down to zero, something in my head triggers a "oh, I can now afford ________" then before you know it my debt is up a few thousand. Although, that trip to Guam was worth it.

Anyway, I think our government is too far gone to operate like that. Besides, it's easier for a single person to control their spending than a country with over 310 million people pulling in all directions with different priorities.

Yes I agree & although I am debt free I have a very high credit rating.

Reason is I built homes on credit cards....Just for the points & would pay them all off monthly.

I use credit cards but never pay interest/finance charges.

They still love it because although they do not get finance charges from me they still get the merchant %fees

Back before the transfer fee started I sue to circle debt for awhile between a few cards again only for the points & it looked great on my credit to be paying off 20-40k a month from each card...The reality was I just moved it in a circle.

Alas they caught on I guess as these days they have a balance transfer fee.

End of the day I agree with most here.........we are taught early on to live within our means yet our government does not.

Such is the power of the printing/digitizing presses.

Edited June 11, 2012 by flying

[koheesti]

End of the day I agree with most here.........we are taught early on to live within our means yet our government does not.

Such is the power of the printing/digitizing presses.

Let's all be honest, if we could get away with printing out own money, we would.

[flying]

End of the day I agree with most here.........we are taught early on to live within our means yet our government does not.

Such is the power of the printing/digitizing presses.

Let's all be honest, if we could get away with printing out own money, we would.

Yes I'm sure many would but....when your government prints it is stealing from the savings of those who played

by what they thought were sound rules.

If they double the money supply you no longer get two nickels for each dime you had saved....

Edited June 11, 2012 by flying

[Colin Yai]

[media=]

[/media] as a matter of interest what do American members think of this video? EDIT, maybe its time to put Country first and individual politics second , just a thought or is this too much to ask ? Edited June 11, 2012 by Colin Yai

[flying]

as a matter of interest what do American members think of this video? EDIT, maybe its time to put Country first and individual politics second , just a thought or is this too much to ask ?

Yes all true & I have often said two wings of basically the same corrupt bird.

Americans are given the illusion of choice all the while never realizing both wings

are tied firmly to the same strings.

Anyone who does speak up in favor of reality is quickly ignored or worse...

Sadly I for one think it is too late & have acted accordingly

[Exsexyman]

as a matter of interest what do American members think of this video? EDIT, maybe its time to put Country first and individual politics second , just a thought or is this too much to ask ?

Yes all true & I have often said two wings of basically the same corrupt bird.

Americans are given the illusion of choice all the while never realizing both wings

are tied firmly to the same strings.

Anyone who does speak up in favor of reality is quickly ignored or worse...

Sadly I for one think it is too late & have acted accordingly

Two wings of the same bird? Is that the same as two cheeks of the same ass, which would surely be more appropriate for this topic?

[kerryk]

as a matter of interest what do American members think of this video? EDIT, maybe its time to put Country first and individual politics second , just a thought or is this too much to ask ?

Yes all true & I have often said two wings of basically the same corrupt bird.

Americans are given the illusion of choice all the while never realizing both wings

are tied firmly to the same strings.

Anyone who does speak up in favor of reality is quickly ignored or worse...

Sadly I for one think it is too late & have acted accordingly

Two wings of the same bird? Is that the same as two cheeks of the same ass, which would surely be more appropriate for this topic?

I would be inclined to think it depends on your ethnicity and/or purpose for posting. The thread is rather innocous unless one is trying to make a point not included in the OP.

[KeyserSoze01]

Obviously Obummer's "Hope and Change" didn't work like all the other things he promised.

Yeah, it's sad how long it takes to stop a train set in motion by your predecessor at 100 miles an hour down a hill toward disaster.

Especially when all of your predecessor's buddies are bound and determined to sabotage you no matter what it costs the country...

Now, now, no need for the blame game as there has been more than enough wrong-doing on both sides of the aisle for the last 40 years. You can tie the beginning of the fiasco know as US monetary policy to when Tricky Dick took the US off the gold standard in order to print greenbacks to fund the Vietnam debacle.

Kicking the can down the road and taking backhanders from lobbyists is the new norm inside the beltway in DC.

Obama's mistake is continuing to blame Bush after 4 years in office (much like you) with zero progress in the economy or jobs arena. The Dems haven't even attempted to pass a budget in that time. Hard to blame your predecessor when you're sitting on your thumbs and doing F-all yourself, init?

[KeyserSoze01]

I guess these banks were not "too big to fail." This a big step toward socialism in America and the nationalization of independent banks. It is time we played Taps for the America we once knew. The future is no longer ours.

Wow from the collapse of 4 tiny banks (with a grand total of 21 branches) out of over 8,000 banks nationwide (with approximately 100,000 branches) to the socialistic collapse of the world's richest economy. Time for another cup of java me thinks!

Quite. So many Chicken Littles it's not funny. Of which, I would wager no one on TV would even be remotely affected by the bank closings. They would not have even known about them had this "news" article not been printed, yet it's the end of the world as we know it. Please.