After a run of several years where numerous banks failed each year, no banks failed in 2018, and only four failed in 2019. The low number of bank failures last year, and the absence of any bank failures the year before, clearly are signs that the economy is strong and the banking industry generally is profitable. But the banking sector is notoriously volatile and historically registers all of the economy’s ups and downs vividly. Is it possible that the current banking sector calm itself foreshadows trouble ahead? That is the question asked in a January 6, 2020 Wall Street Journal article entitled “Few Bank Failures Could Be a Warning Sign for U.S. Financial System” (here).
Continue Reading Few Banks Failed Last Year – Is That a Problem?
Here’s Some Good News: No Bank Failures
Want some good news? During calendar year 2018, there were exactly zero bank failures in the United States. Zero. Nil. Nada. Zilch. The last time there were no U.S. bank failures was waaaay back in 2006. Needless to say, a lot has happened since then. But the best part of all is that because of a strong economy, and because of the purifying effects of the financial refiners’ fire, the banking sector is as healthy as it has been in many years. Hugh Son’s January 10, 2019 CNBC article about the U.S. banks’ current healthy state can be found here.
Continue Reading Here’s Some Good News: No Bank Failures
FDIC: Banks Prosper, Problem Institutions Remain
The banking industry had a “positive quarter” in the third quarter of 2014, according to the FDIC”s latest Quarterly Banking Profile. Banks continue to improve and are performing better than during the same period a year ago. In the aggregate during the quarter, banks reported income growth based on growing revenue rather than just lower
FDIC: Banks Improve, Problem Institutions Linger
Overall, the banking industry continued to improve in the first quarter of 2014, although banks did see their noninterest income decline due to reduced mortgage activity and a drop in trading revenue, according to the FDIC’s Quarterly Banking Profile for 1Q14. The latest Quarterly Banking Profile can be found here and the FDIC’s May 28,
FDIC: Banks Improve, Number of Problem Institutions Continues to Decline
The commercial banking industry is continuing its rebound from the subprime meltdown and the global financial crisis. According to the FDIC’s latest Quarterly Banking Profile for the period ending December 31, 2014 (here), the industry’s overall earnings continue to improve, largely as a result of reduced loan-loss provisions. However, operating revenue declined during
Reps and Warranties Insurance: Multiple-Based Damages Claims
The purchase of reps and warranties insurance is an increasingly common element of mergers and acquisitions transactions. But while the uptake of reps and warranties insurance has increased, concerns remain about how a reps and warranties insurance will respond if a claim arises based on an allegation that a seller has breached a financial statement
FDIC: Banking Sector Improves, Problem Banks Persist
The improvement in the banking sector continued in the first quarter of 2013, according to the FDIC’s Quarterly Banking Profile for the first quarter of 2013, which the agency released on May 29, 2013. A copy of the Quarterly Banking Profile can be found here. Overall the industry reported aggregate first quarter net income
FDIC: Banks Continue Recovery, “Problem Institutions” Decline
Insured depositary institutions continued to improve during the third quarter of 2012, while at the same time the number and percentage of “problems institutions” declined, according to the FDIC’s latest quarterly banking profile. The quarterly report for the quarter ending September 30, 2012, which the agency released on December 4, 2012, can be found here
FDIC: Banks Improve, Problem Institutions Continue to Decline
According to the FDIC’s Quarterly Banking Profile for the first quarter of 2012, which can be found here and which was released on May 24, 2012, the banking industry generally continues to show improvement. The industry’s aggregate profits are up, and the industry is shedding bad loans, bolstering net worth, and increasing profitability. In addition
FDIC: Number of Problem Institutions Remains at Record Levels
According to FDIC’s Quarterly Banking Profile, released on May 24, 2011 (refer here), the pace of bank failures slowed during the first quarter. However, both the absolute and relative number of problem institutions continued to increase, albeit at a reduced pace compared to recent quarters. The FDIC’s May 24, 2011 press release about the