Friday, February 24, 2012

This Week in Bank Failures

The European Central Bank is providing a new round of liquidity to banks in Europe as a consensus of economists now expect a recession there to last through this year. Banks are taking substantial losses this week on sovereign debt, especially from Greece.

HSBC is closing its bank in Japan, which it launched just four years ago. HSBC has been cutting back its operations in Pacific countries, with recent closings in Korea and Central America.

Bank of America says it can no longer sell mortgages to Fannie Mae. It says this will not affect its mortgage operations.

The OCC tonight closed Home Savings of America. The bank had $432 million in deposits. It had offices in Minnesota and California. The FDIC will send checks to depositors beginning Monday.

The failed bank had opened its California branches starting in 2007, two years after the problems in the real estate market there had become apparent.

In Georgia, state banking regulators closed Central Bank of Georgia, which had five offices in the west central part of the state and $267 million in deposits. Ameris Bank is taking over the deposits and purchasing the assets.