FDIC

The Federal Deposit Insurance Corporation has closed on a sale of 40 percent equity interest in a limited liability company created to hold approximately $1.7 billion of primarily non-performing commercial acquisition, development and construction (“CADC”) loan assets and owned real estate out of AmTrust Bank.

We’ve recently noted that some officials are concerned that insurance companies are holding money in non-FDIC insured accounts that they owe on life insurance policies issued to members of the military. Now, FDIC Chair Sheila C.

Michael Bradfield, General Counsel of the FDIC, is resigning and will leave the FDIC effective August 13, 2010. Bradfield has served in this position since May 2009. 

Late Friday, the Federal Deposit Insurance Corporation closed five more banks, bringing the total for this year to 108. A total of 22 banks failed in July alone (and that's with none over the July 4 holiday weekend) – the most of any month since 23 failed in April. 

The Federal Deposit Insurance Corporation has closed on a sale of securities as part of a securitization backed by approximately $471.3 million of performing single family mortgages from 16 failed banks. The investors represented a wide variety of organizations and paid par for the senior certificates. This is the first time the FDIC has sold assets in a securitization in the current financial crisis. 

Last Monday, we noted that July 16 saw the most bank failures – six – since April 30, when seven banks failed, and that 96 banks had failed this year. Well, folks, this past Friday, July 23, saw seven more failures – tied for the most of any day this year – and the number of failed banks blew by 100 since January 1; there now are 103. 

Earlier today we mentioned that the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law by President Obama permanently raised the maximum deposit insurance amount to $250,000. There’s one more thing to note about that: this increase is retroactive to January 1, 2008. 

The FDIC has closed on the sale of a 40 percent equity interest in a limited liability company created to hold approximately $898 million of primarily non-performing residential loan assets out of AmTrust Bank. The winning bidder is a three party consortium of Residential Credit Solutions, Inc., CarVal Investors, and RBS Financial Products Inc. at a price of approximately 37 percent of unpaid principal balance. 

This past Friday saw the most bank failures – six – since April 30, when seven banks failed. Among those that were closed by the government was the sweetly named “Mainstreet Savings Bank, FSB,” of Hastings, Michigan. Mainstreet Savings was the 96th bank to fail this year. Commercial Bank of Alma, Michigan, assumed its deposits. 

We didn’t want to let this milestone pass today: Home National Bank in Blackwell, Oklahoma, was closed Friday night – the 90th bank to fail this year – by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.