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Timeline of events

A Timetable of Events: 2008-present

 2008

 

1. There were several early warnings that things were not quite right in the nation's financial system and, indeed, the global economy. One of the more significant ones most of us missed came from Great Britain in September, 2007. Northern Rock – one of the largest mortgage banks in England – asked for and received a significant capital infusion from the British government. Global markets shook it off as an aberration.

2. October 9, 2007 — Dow Jones hits record intra-day high of 14,279.96, closes at 14,164.53.

3. January 11, 2008 — Bank of America announces it will purchase Countrywide Financial later in the year. Countrywide had warned of problems and “difficult conditions” six months earlier.

4. January 25 — Douglas National Bank, Kansas City, Mo., a $58 million bank is closed by the OCC. Estimated costs to the DIF are $5.7 Million.

5. The first financial stimulus act was signed on February 13, 2008. Four days later, Northern Rock was taken over by the British government.

6. March 7 — A second Missouri bank, Hume Bank, Hume, Mo., an $18.7 million bank is closed by the State Banking regulator. Estimated costs to the DIF are minimal, according to the FDIC.

7. The first major assault on the U.S. financial system took place in March 2008 in the form of the Bear Stearns collapse. [1]

a. Bear-Stearns, an 85-year old investment bank, had pioneered the development of asset-backed securities. It was one of the most admired securities firms in the world and had more than 15,000 employees around the globe.

b. In early March 2008, rumors began to spread that Bear was in trouble and questions were raised about the firm's liquidity. Leveraged roughly 35-1 at the time, its stock price dropped like a stone – 20 percent over a 10-day period ending March 6th – and investors were losing confidence.

c. On March 7, Bear Stearns applied for a short-term loan of $2 billion and the application was rejected.

d. Monday, March 10 — Bear Stearns issues a media release to counter the liquidity rumors as untrue. Bear had about $17 Billion in cash at that time.

e. The next day – Tuesday, March 11 – Bear's CFO Sam Molinaro denies the liquidity rumors on CNBC.

f. March 11 — Goldman Sachs sends e-mail around Wall Street that its credit derivatives division would no longer stand in for other firms (as had been the practice) on deals involving derivatives originated by Bear. In other words, Goldman was pulling the plug on its relationship with Bear Stearns. Word quickly spread throughout the Wall Street firms.

g. March 13 — Bear's CEO Allan Schwartz called JPMorgan Chase asking for help.

h. March 14 — Bear's liquidity is down to $2 billion. Chase agreed to put up $30 billion in funding which had the backing of the federal government. Bear's stock value dropped 40 percent in the first half-hour of trading.

i. March 17 — St. Patrick's Day: JPMorgan Chase offers to purchase Bear for $2 a share, a fall from its high of $133.20.

j. March 24 — With government guarantees in place (up to $29 billion or more), Chase upped the offer to $10/share. [2]

2. May 9 — ANB Financial, Bentonville, Ark., a $2.1 billion institution, is closed by the OCC. Estimated costs to the DIF are $214 million.

3. May 30 — First Integrity Bank, NA, Staples, Minn., a $54.7 million bank, is closed by the OCC. Estimated costs to the DIF are $2.3 million.

4. July 1 — Bank of America completes the acquisition of Countrywide Financial. At the time, Countrywide financed about 20 percent of all mortgages nationwide.

5. July 11 — IndyMac FSB, Pasadena, Calif., is closed by the Office of Thrift Supervision. IndyMac had been spun off from Countrywide in 1997, and at the time of its failure was a $32 billion federal savings bank. It is one of the largest insured depositories in history to have failed, and its failure came about as a direct result of week-long bank “run” that was shown in video reports around the globe. Estimated costs to the DIF are approximately $9 billion.

6. July 13 — Two days later the Federal Reserve Bank of New York was authorized to lend to Fannie Mae and Freddie Mac should the need arise. The SEC issued an order prohibiting the naked “short selling” of shares of both companies two days later.

7. July 25 — Two banks are closed by the OCC, which begins to focus more attention on the growing number of bank failures: First National Bank of Nevada, Reno, Nev.,, a $3.4 billion bank, along with its sister bank First Heritage Bank, N.A., Newport Beach, Calif., ($254 million). Cost to the DIF as a result of the failure of both banks is estimated at $862 million.

8. July 30 — Congress passed, and President Bush signed, the Housing and Economic Recovery Act of 2008[3], reforming the supervision of Fannie and Freddie, and giving the Treasury Department authority to invest in GSE obligations.

9. August 1 — First Priority Bank, Bradenton, Fla., is closed by banking regulators. The bank had total assets of $259 million, and estimated costs to the DIF are $72 million.

10. August 22 — Columbian Bank & Trust, Topeka, Kan., is closed. The bank had total assets of $752 million, and estimated costs to the DIF are $60 mllion.

11. August 29 — Integrity Bank, Alpharetta, Ga., a $1.1 billion bank is closed at an estimated cost to the DIF of up to $350 million.

12. September 5 — Nevada was hit again with the closing of Silver State Bank in Henderson, Nev. The bank had total assets of $2.0 billion and the estimated cost to the DIF is up to $550 million.

13. Sunday, September 7 — the federal government seized control of Fannie Mae and Freddie Mac, with a government backing of at least $100 billion.

14. The Lehman Brothers development changed everything.

a. On Tuesday, Sept. 9, the giant Wall Street Investment Firm watched as its stock price was cut in half. It was literally out of cash.

b. On Friday, Sept. 12, New York Fed President Timothy Geithner (now Secretary of the Treasury) called a meeting after the markets closed with the heads of some of the major Wall Street firms (Goldman Sachs, JPMorgan Chase, Citigroup, Merrill Lynch and Morgan Stanley) to review their respective exposure to Lehman Brothers and plan for contingencies.

15. Sunday, September 14 — Merrill-Lynch is “sold” to Bank of America for nearly $50 billion. (The transaction was made public the next morning and was to be finalized after the first of the New Year. It was approved by the Federal Reserve the day before Thanksgiving.)

16. Sunday, September 14 — That same day, after failing to find a buyer – in part because the federal government refused to issue any kind of guarantee as it had in the Bear Stearns collapse – Lehman Brothers readied its plan to file for bankruptcy protection.

17. Monday, September 15 — Lehman Brothers files for Bankruptcy protection; the Dow-Jones Industrial Average drops more than 500 points.

18. Tuesday, September 16 — Primary Fund, a money market mutual fund managed by The Reserve and holding $785 million in Lehman Brothers commercial paper became the first such mutual fund to “break the buck.”[4] It sent a panic through the investment community and the Bush Administration.

19. September 16 — American International Group (AIG) is taken over by the federal government with an $85 billion capital injection. The total government injection into AIG now stands at $182 billion.

20. Thursday, September 18 — Putnam Investments, one of the oldest names in the mutual fund industry, announced it was liquidating its Putnam Prime Money Market Fund, a $12.3 billion fund that only served professional investors. Its redemption capability was falling quickly.

21. That same day the SEC issued an emergency ban on short selling for all financial firms.

22. Friday, September 19 — the Fed announced plans to make funds available to banks and their holding companies to finance purchases of asset-backed commercial paper.

23. Friday, September 19 — President Bush, flanked by Treasury Secretary Henry Paulson and Federal Reserve Board Chairman Ben Bernanke, announces that the Federal government will guarantee all money market mutual fund accounts. (It's not clear at this point whether that guarantee applied to all amounts going forward, or just as of those held as of the close of business that day.) The President also announces that a plan was being developed to rescue the financial system. The Troubled Assets Relief Program is developed, and an outline of proposed legislation was submitted to Congress on Saturday, Sept. 20.

24. September 19 — at the close of the business day banking regulators close Ameribank, Northfork, W.V. The bank had total assets of $115 million and estimated costs to the DIF are $42 million.

25. Sunday, September 21 — Investment banks Goldman Sachs and Morgan Stanley applied for permission to become bank holding companies. The applications were approved later that same day.

26. September 21 — The Treasury Department clarifies that the MMMF guarantee announced by President Bush on Friday applies only to balances at the close of business on that day, not prospective balances going forward.

27. September 25 — Washington Mutual Savings Bank and its subsidiary Washington Mutual FSB, Park City, Utah, fail. With total assets of $307 billion, it's the largest insured depository institution failure in U.S. history. Its banking operations were acquired by JPMorgan Chase.

28. September 29 — It's announced that Citigroup will purchase Wachovia; the FDIC enters into a loss-sharing arrangement on $312 billion worth of Wachovia's assets.

29. That same day, Monday, Sept. 29, the U.S. House of Representatives rejects the Treasury Department's proposal to create the Troubled Assets Relief Program.

30. October 3 — Wells Fargo enters the fray for Wachovia and offers to buy the failed entity without any FDIC assistance. The deal, announced on Oct. 3, was completed and approved by the Fed nine days later.

31. October 3 — Congress passes the Economic Emergency Stabilization Act of 2008 which creates the TARP and includes $700 billion for the purpose of buying up “troubled assets” held by financial firms.

a. The new law creates authority for the Capital Purchase Program (CPP).

b. It also authorized a temporary increase in FDIC insurance to $250,000.

32. October 7 — The FDIC announces that deposit insurance limits will be temporarily increased to $250,000 per insured account.

33. October 10 — Main Street Bank of Northville, Mich., is closed by regulators. It had total assets of $98 million, and estimated costs to the DIF are up to $39 million. That same day Meridian Bank, Eldred, Ill., is closed. It had total assets of $39.18 million and the estimated costs to the DIF are as much as $14.5 million.

34. October 14 — Treasury Secretary Paulson announces that $250 billion of the TARP funds will be used to make capital injections into the nation's largest financial institutions. The nine largest were called together and “invited” to take half of that amount ($125 billion) in exchange for preferred stock in each entity to be held by the Treasury. The deal was closed two weeks later (October 28).

a. The need for passage of the “Economic Emergency Stabilization Act of 2008” was sold to Congress and the American public on the premise that the funds would be used to purchase “toxic” assets from financial institutions. Such purchases were imperative if the nation was to avoid the collapse of financial markets at home and across the globe.

b. On Nov. 12, Secretary Paulson clarified that those funds ($700 billion) would not be used for that purpose as originally stated.

c. To date not one “toxic” or “legacy” asset has been purchased by the federal government.

35. October 14 — The FDIC announces the Temporary Liquidity Guarantee Program, guaranteeing all senior debt at participating FDIC-insured entities and their holding companies. It also announced an unlimited guarantee of all funds held in non-interest bearing transaction accounts through June 30 of this year.

36. October 24 — PNC buys National City, using its CPP money plus the amount that would have been allocated to Nat City to do so. The purchase was approved on Dec. 15.

37. October 24 — Alpha Bank & Trust, Alpharetta, Ga., is closed, the second bank in Alpharetta to be closed this year. Total assets were $354.1 million, and estimated costs to the DIF are $158.1 million.

38. October 31 — Freedom Bank, Bradenton, Fla., is closed by the state banking regulator, with total assets of $287 million and estimated costs to the DIF of up to $104 million.

39. November 7 — Two more banks are closed, one in Texas and one in California. Franklin Bank, SSB, Houston, Texas, was a $5.1 billion state savings bank and it's estimated that its failure will cost the DIF up to $1.6 billion. Security Pacific Bank, Los Angeles, Calif., a $561.1 million bank, is also closed that day with estimated costs to the DIF of $210 million.

40. November 10 — American Express becomes a bank holding company. That same day Treasury and the Fed announce a change in the structure of its ownership of AIG.

41. November 17 — Three of the largest life insurance companies (Harford, Lincoln National and Genworth) announce plans to purchase savings and loan holding companies so they can become eligible to access money under the CPP.

42. The next day, Nov.18, the three largest car makers in the U.S. testify before Congress and ask for access to the TARP funds.

43. November 21 — Three banks are closed, two more in California and one more in Georgia. Community Bank, Loganville, Ga., was a $681 million bank and is estimated to cost the DIF up to $240 million. Downey Savings & Loan, Newport Beach, Calif., was a $12.1 billion federal thrift, and its failure is estimated to cost the DIF approximately $1.4 billion. PFF Bank & Trust, Pomona, Calif., was a $3.7 billion bank the failure of which is estimated to cost the DIF $700 million.

44. November 21 — The first group of banks (23 of them) beyond the original nine receive $3 billion in TARP funds in exchange for their preferred shares. [5]

45. On Nov. 23, Citigroup is issued a package of guarantees, liquidity and capital in exchange for preferred shares. An additional $20 billion from the TARP is added to the $25 billion that has already been invested in Citigroup.

46. November 25 — TALF (Term Asset-Backed Securities Lending Facility) is created two days before Thanksgiving. Up to $200 billion in loans is authorized on a non-recourse basis and $20 billion of the TARP funds will be provided for credit protection.

47. December 3 — Merrill Lynch reports that quarterly losses will approach $9 billion, rather than the $7 billion that was projected earlier.

48. December 5 — Regulators close First Georgia Community Bank, Jackson, Ga., a $237.5 million bank the failure of which is estimated to cost the DIF $72.2 million.

49. December 5 — Merrill Lynch and Bank of America shareholders approve the merger of the two firms which will close after the first of the year.

50. December 8 — Merrill Lynch compensation committee approves payout of $3.6 billion in bonuses to Merrill executives in December, before the merger is consummated and before Fourth Quarter losses are reported.

51. December 12 — Two more banks are closed (the last two for 2008), one in Texas and yet another one in Georgia. Haven Trust Bank, Duluth, Ga., was a $572 million bank whose failure is estimated to cost the DIF $200 million. Sanderson State Bank, Sanderson, Texas, was a $37.1 million bank whose failure is estimated to cost the DIF $12.5 million.

52. December 17 — Bank of America CEO Ken Lewis meets with the Fed and Treasury officials in Washington threatening to pull out of the Merrill Lynch deal because of the severity of the mounting losses at Merrill.

53. December 19 — Loans totaling $17.4 billion were approved from TARP funds for General Motors and Chrysler.

54. On Christmas Eve, the Fed approves the application of GMAC, LLC, and its affiliated entity to become bank holding companies upon conversion of GMAC's industrial loan company charter to a commercial bank charter (Ally Bank).

55. December 29 — Treasury announces $6 billion more will be used to buy equity in GMAC as part of the program to assist the automobile industry.
 

 

2009

 

56. January 1 — The Merrill Lynch sale to Bank of America is closed completing the transaction. The extent of Merrill's Fourth Quarter losses is still unknown, but bonuses have been approved.

57. January 8 — The Federal Home Loan Bank of San Francisco makes public that it is likely to have a capital deficiency because of losses incurred on its investment portfolio and related mortgage-backed securities.

58. January 12 — President Bush asks for the remaining $350 billion from Congress under the TARP authorization, as requested by President-Elect Obama.

59. January 13 — The Federal Home Loan Bank of Seattle announces a capital deficiency and dividend suspension because of problems with its loan portfolio which consists of a large number of mortgage-backed securities.

60. January 16 — National Bank of Commerce, Berkley, Ill., and Bank of Clark County, Vancouver, Wash., are the first two banks to be closed in the new year. Total assets of the two banks are $430.9 million and $446.5 million respectively. Total cost to the Deposit Insurance Fund (DIF) for both banks is estimated at $242.1 million.

61. That same day, Jan. 16, a loss-sharing agreement is made with Bank of America by the Treasury, Federal Reserve and the FDIC. An additional $20 billion is injected into the bank from TARP money.

62. Also on Jan. 16 Treasury announced it will use $1.5 billion of TARP funds to "loan" to Chrysler Financial to enhance more auto-lending activity.

63. January 17 — John Thaine is forced out at Bank of America/Merrill Lynch as the $3.6 billion bonus uproar continues to consume Congress and the public.

64. January 23 — 1st Centennial Bank, Redlands, Calif., is closed. With total assets of $803.3 million, estimated losses to the DIF are $227 million.

65. January 28 — NCUA injects $1 Billion into U.S. Central Federal Credit Union and guarantees uninsured shares of corporate credit unions held by retail credit unions.

66. January 30 — Three more banks are closed: Magnet Bank, Salt Lake City, Utah, with total assets of $292.9 million and estimated DIF losses of $119.4 million; Suburban FSB, Crofton, Md., with total assets of $360 million and estimated DIF losses of $126 million; and Ocala National Bank, Ocala, Fla., with total assets of $223.5 million and estimated DIF losses of $99.6 million.

67. February 6 — Three more banks close: FirstBank Financial, McDonough, Ga., with total assets of $337 million and estimated costs to DIF of $111.0 million; Alliance Bank, Culver City, Calif., with total assets of $1.14 billion and estimated costs to DIF of $206 million; and County Bank, Merced, Calif., with total assets of $1.7 billion and estimated costs to DIF of 135 million.

68. February 10 — New Treasury Secretary Tim Geithner announces the PPIP, the Public Private Investment Program through which the new entities will purchase “legacy” assets from troubled financial institutions.

69. February 13 — Four more banks fail: Sherman County Bank, Loup City, Neb., with total assets of $129.8 million and estimated costs to DIF of $28 million; Riverside Bank of the Gulf Coast, Cape Coral, Fla., with total assets of $539 million and estimated costs to DIF of $201.5 million; Corn Belt Bank, Pittsfield, Ill., with total assets of $271.8 million and estimated costs to DIF of $100 million; and Pinnacle Bank of Oregon, Beaverton, Ore., with total assets of $73 million and estimated costs to DIF of $12.1 million.

70. February 17 — The President signs the economic stimulus package into law which calls for $787 billion in stimulus spending by the government.

71. February 18 — Treasury increases its stake in Fannie and Freddie to $200 billion in preferred shares.

72. That same day, President Obama announces his “Hope for Homeowners” plan to permit refinancing of four to five million mortgages including a refinancing option for “responsible” homeowners with mortgages guaranteed by Fannie and Freddie; and creating a $75 billion “Homeowner Stability Initiative” fund to help “hard-pressed homeowners” modify loans, reduce monthly payments and stay in their homes. [6]

73. February 20 — Silver Falls Bank, Silverton, Ore., is closed with total assets of $131.4 million and estimated costs to DIF of $50 million.

74. February 25 — Stress testing of the 19 largest financial institutions is announced by the Fed, OCC, OTS and the FDIC.

75. February 26 — The FDIC announces that the number of problem banks has increased to 252 at year end 2008, up from 171. Total assets for those 252 institutions are $159 billion. That same day Fannie reports a $25.2 billion loss for the Fourth Quarter, 2008.

76. February 27 — Two more banks are closed: Heritage Community Bank, Glenwood, Ill., with total assets of $230.9 million and estimated costs to the DIF of $41.6 million and Security Savings Bank, Henderson, Nev., with total assets of $238.3 million and estimated costs to the DIF of $69.1 million.

77. February 27 — The FDIC Board proposes an emergency 20-basis point “special assessment” to be applied equally across the board to all insured institutions to replenish the Deposit Insurance Fund.

78. March 2 — AIG reports a loss of $99.3 billion for 2008 ($61.7 in the Fourth Quarter), and the Treasury announces major restructurings of its AIG holdings. Thirty billion dollars in additional capital is injected.

79. March 2 — FDIC Chairman Sheila Bair is part of a nation-wide conference call with the ABA's Board of Directors, Government Relations Council and state bankers associations to hear the outrage from bankers about the proposed special assessment.

80. March 4 — A conference call among state bankers associations discusses legislative strategies to confront the special assessment issue head-on.

81. March 5 — FDIC Chairman Sheila Bair tells ABA and the state bankers associations the assessment can be cut in half, IF Congress increases the FDIC's borrowing authority from the Treasury to at least $100 billion; Senator Chris Dodd (D-Conn.), chairman of the Senate Banking Committee, introduces S. 541 to increase the borrowing authority of the FDIC to at least $100 billion, proposes “fast-track” for legislation.

82. March 6 — Freedom Bank of Georgia, Commerce Ga., is closed by regulators with total assets of $173 Million and estimated costs to the DIF of $36.2 million.

83. Another conference call among state bankers associations and the ABA was held to discuss legislative strategy on the bill introduced by Sen. Dodd to increase the FDIC's borrowing authority; Sen. Dick Durbin (D-Ill.), Senate Majority Whip, tells supporters that mortgage cram-down authority is to be attached to the “must-pass” FDIC bill increasing the Agency's borrowing authority.

84. March 9 — Word is “leaked” that AIG plans to pay approximately $165 million in “bonuses” to employees in its financial products division.

85. March 9 — Dow Jones Industrials hits intra-day low of 6,440.08, closes at 6,547.05. That's a peak to trough drop (intra-day high/low) of 54.9 percent.

86. March 11 — Freddie announces a loss of $50.1 billion for 2008 ($23.9 billion in the Fourth Quarter). It also announces a need for more capital.

87. March 11 — Treasury Secretary Tim Geithner calls Ed Liddy, interim CEO of AIG, to tell him the planned bonus payments to be made by the end of the week are “unacceptable” and demands they be renegotiated.

Note: as it turns out, details of the bonuses were known at the Federal Reserve Bank of New York more than five months before the firestorm erupted in Washington in March. Timothy F. Geithner, the Secretary of the Treasury, was the head of the New York Fed when it became aware of the bonus details.

Note further that Senate Banking Committee Chairman Chris Dodd (D-Conn.), one of the largest recipients of AIG political contributions last year – $103,100 – added an amendment to the President's stimulus package making a specific exception for the payment of contractually obligated bonuses agreed to before Feb. 11, 2009. Dodd's staff claims he did not know about the pending AIG bonuses at the time this amendment was drafted.

88. March 16 — President Obama expresses outrage about the AIG bonuses, vows to “pursue every single legal avenue to block these bonuses and make the American taxpayers whole."

89. March 17 — Five bills are introduced in the House of Representatives to impose a surtax on bonuses paid to firms receiving TARP money.

90. March 17— The debt guarantee portion of the Temporary Liquidity Guarantee Program is extended by the FDIC until Oct. 31.

91. March 19 — The Treasury announces an “Auto Supplier Support Program” that will provide up to $5 billion in financing for the auto industry and related parties.

92. March 19 — The U.S. House of Representatives passes H.R.1586, introduced by Ways & Means Committee Chairman Charles Wrangle (D-N.Y.), to impose a 90-percent surtax on bonuses granted to employees earning more than $250,000 per year at companies that have received at least $5 billion from the TARP funds issued in conjunction with the government's financial rescue plan. The vote was 328-93.

93. March 20 — Three more banks are closed: FirstCity Bank, Stockbridge, Ga., with total assets of $278 million and estimated costs to the DIF of $100 million; Colorado National Bank, Colorado Springs, Colo., with total assets of $123.5 million and estimated costs to the DIF of $9 million; and TeamBank, N.A., Paola, Kan., with total assets of $669.8 million and estimated costs to the DIF of $98 million.

94. March 23 — Treasury releases details of the proposed PPIP and the division into “legacy assets” and “legacy securities”.

95. March 26 — Treasury releases a draft of its plan to restructure the financial services regulatory system, including assigning responsibility for all systemically-important entities and creating a new Consumer Financial Protection Agency.

96. March 27 — Omni National Bank, Atlanta, Ga., is closed with total assets of $956 million and estimated costs to the DIF of $290 million.

97. March 31 — Four banks announce the redemption of the preferred shares they issued under the CPP.

98. March 31 — In a little-noticed announcement, Taylor, Bean & Whitaker, the nation's 12th largest wholesale mortgage lender, agrees to take a majority interest in Colonial BancGroup, a $26 billion bank holding company and a major mortgage warehouse lender. The company is based in Montgomery, Ala., and has 355 branches across in Florida, Georgia, Alabama, Texas and Nevada. The deal calls for TBW to inject $300 million into the company. Colonial's participation in the Capital Purchase Program is contingent on raising the additional capital embodied in this agreement. The significance of the “deal” is two-fold: first, the impact that any collapse by TBW may have on the Government National Mortgage Association (GINNIE MAE), and second, the impact that the failure of Colonial BancGroup will have on the FDIC's Deposit Insurance Fund and the rest of the industry. See infra, beginning at note 142, herein.

99. March 31 — the Deposit Insurance Fund is left with approximately $13 billion in the Fund, plus an additional $25 billion held by the FDIC as a reserve against future bank failures.

100. April 2 — FASB announces new guidance to relax the reporting requirements for troubled assets held by financial institutions.

101. April 10 — Two more banks are closed by regulators: Cape Fear Bank, Wilmington, N.C., with total assets of $492 million and an estimated cost to the DIF of $131 million; and New Frontier Bank, Greeley, Colo., with total assets of $2.0 billion and estimated costs to the DIF of $670 million.

102. April 17 — Two more banks are closed by regulators: American Sterling Bank, Sugar Creek, Mo., with total assets of $181 million and estimated costs to the DIF of $42 million; and Great Basin Bank of Nevada, Elko, Nev., with total assets of $270.9 million and estimated costs to the DIF of $42 million.

103. April 24 — Four more banks are closed by banking regulators in four states: American Southern Bank, Kennesaw, Ga., with total assets of $112.3 million and estimated costs to the DIF of $41.9 million; Michigan Heritage Bank, Farmington Hills, Mich., with total assets of $184.6 million and estimated costs to DIF of $71.3 million; First Bank of Beverly Hills, Calabasas, Calif., with total assets of $1.5 billion and estimated costs to the DIF of $394 million; and First Bank of Idaho, Ketchum, Idaho, with total assets of $374 million and estimated costs to the DIF of $191.2 million.

104. April 30 — Bankers defeat “mortgage cram-down” amendment in Senate on the measure to increase the FDIC's borrowing authority, lower special assessment.

105. April 30 — H.R. 627, the Credit Cardholders Bill of Rights Act of 2009 introduced by Rep. Carolyn Maloney (D-N.Y.) passes the House 357-70. This bill “levels the playing field between credit card issuers and cardholders by applying common-sense regulations: no retroactive rate increases on existing balances, no double-cycle billing, and no due-date gimmicks,” Rep. Maloney said.

106. May 1 — Three more banks are closed in three states: Silverton Bank, N.A., Atlanta, Ga., (formerly a “bankers bank”, Silverton had total assets of $4.1 billion and it's estimated its failure will cost the DIF $1.3 billion; Citizens Community Bank, Ridgewood, N.J., with total assets of $45.1 million and estimated costs to the DIF of $18.1 million; and America West Bank, Layton, Utah, with total assets of $299.4 million and estimated costs to the DIF of $119.4 million.

107. May 7 — The results of the “stress tests” on the nation's 19largest institutions are released. Nine of the 19 are adequately capitalized, but 10 need to bolster their capital accounts based on the examinations.

108. May 8 — Westsound Bank, Bremerton, Wash., is closed. It has total assets of $334.6 million and estimated costs to the DIF are $108 million.

109. May 8 — Fannie reports a First Quarter loss of $23.2 billion. Nineteen billion dollars more is injected into the GSE. Four days later, Freddie reports a First Quarter loss of $9.9 billion; $6.1 billion of additional government money is injected into the GSE.

110. May 19 — The House passes S. 896 increasing the FDIC's borrowing authority to $100 billion, among other things. It does not include either mortgage cram-down language or an increase credit union commercial lending authority. The Senate follows suit and sends the bill to the president for his signature.

111. May 20 — The Senate passes H.R. 627, the Credit Cardholders Bill of Rights Act of 2009, on a vote of 90-5 and sends it back to the House. The House approves the Senate's amendments that same day and sends the bill to the President.

112. May 20 — The president signs S. 896, the Helping Families Save Their Homes Act. The bill amends the HOPE for Homeowners Program announced in February and will:

a. permit reduction of excessive fee levels,

b. provide greater incentives for mortgage servicers to engage in modifications under the Program, and

c. reduce administrative burdens to loan underwriters by making the requirements more consistent with standard FHA practices.

The bill also increases the FDIC's borrowing authority to $100 billion. This increased authority relates directly to the amount of the special assessment and increases FDIC coverage to $250,000 until the end of 2013.

113. May 21 — BankUnited, Coral Gables, Fla., is closed by bank regulators. It had total assets of $12.8 billion and the estimated costs to the DIF caused by this failure are $4.9 billion. The bank is closed a day earlier than normal.

114. May 21 — GMAC Financial Services is authorized to participate in the Temporary Liquidity Guarantee Program.

115. May 21 — President Obama signs H.R. 627, the Credit Cardholders Bill of Rights Act of 2009.

116. May 22 — Two more banks are closed in Illinois: Strategic Capital Bank, Champaign, with total assets of $537 million and estimated costs to the DIF of $173 million; and Citizens National Bank, Macomb, with total assets of $437 million and estimated costs to the DIF of $106 million.

117. May 22 — FDIC Board votes to change the special assessment calculation from 20 basis points on domestic deposits to 5 basis points on an individual bank's total assets, minus Tier 1 capital, in order to replenish the Deposit Insurance Fund (DIF).

a. The new assessment is significantly lower than originally proposed and saves the industry nearly $10 billion.

b. The new assessment base will include Federal Home Loan Bank advances.

c. The final rule also authorizes the FDIC to impose up to two additional 5-Basis Point assessments if needed. FDIC Chairman Bair noted that a second additional assessment is probable in the Fourth Quarter of this year, but did not commit to an amount.

118. May 27 — FDIC announces that the problem bank list continues to grow. At the end of the First Quarter, the total number of problem institutions grew to 305 entities with total assets of $220 billion.

119. May 28 — House Financial Services Committee Chairman Barney Frank (D-Mass.) and Committee members Carolyn Maloney (D-N.Y.) and Luis Gutierrez (D-Ill.) write to Federal Reserve Chairman Ben Bernanke complaining about bank overdraft fees: “(Such fees) . . . often take consumers completely by surprise . . . and {are} usually vastly disproportionate to the amount of the overdraft itself. It is only fair, then, that institutions be required to obtain consumers' affirmative consent before enrolling them in fee-based overdraft programs,” the letter said.

120. June 1 — The Fed announces the terms that will enable some of the largest financial institutions to redeem the preferred shares issued under the TARP/CPP.

121. June 3 — The FDIC postpones the sale of the first batch of “legacy” bank assets under the PPIP.

122. June 5 — Regulators close Bank of Lincolnwood, Lincolnwood, Ill. It had total assets of $214 million and estimated costs to the DIF are $83 million.

123. June 9 — Ten of the largest institutions meet the criteria to redeem their preferred shares issued under the TARP/CPP. Treasury will receive up to $68 billion in redemptions.

124. June 17 — The Treasury issues its outline for reforming the financial regulatory system, including the creation of a new Consumer Financial Protection Agency to oversee all things related to consumer financial transactions. In addition, the proposal outlines the creation of a systemic risk regulator with an oversight council.

125. June 19 — Three more banks are closed: Southern Community Bank, Fayetteville, Ga., with total assets of $377 million and estimated costs to the DIF are $114 million; Cooperative Bank, Wilmington, N.C., with total assets of $970 million and an estimated cost to the DIF of $217 million; and First National Bank of Anthony, Anthony, Kan., which had total assets of $156.9 million and estimated costs to the DIF are $32.2 million.

126. June 23 — Taylor, Bean & Whitaker pays $9 million as part of a settlement agreement with the Florida Office of Financial Regulation and thirteen other states after an investigation into the company's 2006 and 2007 non-traditional loans found a number of irregularities.

127. June 26 — Five more banks are closed: Community Bank of West Georgia, Villa Rica, Ga., which had total assets of $199.4 million and the estimated costs to the DIF are $85 million; Neighborhood Community Bank, Newnan, Ga., which had total assets of $221.6 million and it's estimated that the cost to the DIF will be $66.7 million; Horizon Bank, Pine City, Minn., with total assets of $87.6 million and it's estimated that the cost to the DIF will be $33.5 million; MetroPacific Bank, Irvine, Calif., which had total assets of $80 million and the estimated cost to the DIF is $29 million; and Mirae Bank, Los Angeles, Calif., with total assets of $456 million and the estimated cost to the DIF is $50 million.

128. June 30 — The Administration releases a draft of the proposed language to create the Consumer Financial Protection Agency, the first part of the overall plan it's developed to restructure the federal financial oversight system. Elements and entities regulated by the SEC and the CFTC are exempt from its provisions.

129. July 2 — The FDIC is appointed receiver for seven banks that are closed, six of which are located in Illinois and controlled by the same family: The John Warner Bank, Clinton with total assets of $70 million and estimated cost to the DIF of $10 million; The First State Bank of Winchester, Winchester, with total assets of $36 million and estimated losses to the DIF of $6 million; Rock River Bank, Oregon, with total assets of $77 million and an estimated cost to the DIF of $27.6 million; The Elizabeth State Bank, Elizabeth, with total assets of $55.5 million and estimated costs to the DIF of $11.2 million; First National Bank of Danville, with total assets of $166 million and estimated costs to the DIF of $24 million; and Founders Bank, Worth, with total assets of $962.5 million and estimated costs to the DIF of $188.5 million. The seventh bank closed this day is Millennium State Bank of Texas, Dallas, Texas, with total assets of $118 million and an estimated loss for the DIF of $47 million.

130. July 8 — House Financial Services Committee Chairman Barney Frank introduces H.R. 3126 which incorporates most of the Administration's language to create the Consumer Financial Protection Agency. It transfers all authority for enforcement of consumer laws to the new agency with the exception of the Community Reinvestment Act.

131. July 9 — Details are announced about the “PPIP/Legacy Securities Purchasing Program”. Thirty billion dollars from Treasury to be invested with private fund managers to purchase the formerly “toxic” – now “legacy” – assets on the books of a number of large financial institutions.

132. July 9 — Stories begin to circulate that AIG is seeking prior approval from Obama Pay Czar to pay out bonuses totaling more than $200 million.

133. July 10 — COP releases its monthly report outlining concerns about repayment of TARP/CPP funds by certain large entities. [7]

134. July 10 — Bank of Wyoming, Thermopolis, Wyo., is closed by banking regulators. The bank had total assets of $70 million and estimated costs to the DIF are $27 million.

135. July 16 — House Financial Services Committee Chairman Barney Frank (D-Mass.) comments on recent reports suggesting that Wall Street firms are returning to their “old ways” and issues warning to those ”who “yearn for the stirring return of yesteryear.” Basically, Frank says, it will not happen. His committee plans to take up compensation limitations later in the month.

136. July 17 — Four more banks are closed, two in California, one in George and one in South Dakota. First Piedmont Bank, Winder, Ga., total assets of $115 million, and BankFirst, Sioux Falls, S.D., with total assets of $275 million. Estimated costs to the DIF for both of these banks are $120 million. Also closed are Vineyard Bank, Rancho Cucamonga, Calif., and Temecula Valley Bank, Temecula, Calif. Total assets for the two California banks were $3.4 billion and the estimated cost to the DIF for both banks is $975 million. The total now stands at 57 for the year.

137. July 20-22 — Four-hundred-plus bankers descend on Capitol Hill during the American Bankers Association's Summer Meeting to object to the new CFPA as it applies to traditional banks. Following several meetings with those bankers, Chairman Frank announces mark-up of the legislation will be postponed until after the August recess. Treasury officials insist traditional banks and their federal regulatory agencies are part of the nation's current economic problems and must be addressed by this proposed new agency.

138. July 23 — The Federal Reserve issued for comment a proposal to make significant changes to Regulation Z (Truth in Lending). These changes are intended to improve the disclosures consumers receive in connection with closed-end mortgages and home-equity lines of credit (HELOCs). These changes reflect the result of consumer testing conducted as part of the Board's comprehensive review of the rules for home-secured credit. The amendments would also provide new consumer protections for all home-secured credit. See the details here: http://www.federalreserve.gov/newsevents/press/bcreg/20090723a.htm

139. July 24 — Seven banks are closed, six more in Georgia, all of which were subsidiaries of Security Bank Corporation, Macon, Ga. That brings the state's total number of failed banks for the year to 16. The seventh bank closed is Waterford Village Bank, a $61.4 million bank headquartered in Clarence, N.Y. Total assets of the Georgia banks were $2.8 billion, and the estimated cost to the DIF for all seven closures is $813 million.

140. July 28 — House Financial Services Committee approves H.R. 3269, The Corporate and Financial Compensation Fairness Act of 2009. The bill is designed to give shareholders of public companies a say in setting the compensation of executives. An amendment is added to exempt traditional banks with less than $1 billion total assets from the provisions of the bill. An attempt to remove credit unions from the bill altogether is beaten back.

141. July 31 — The House passes H.R. 3269 by a vote of 237-185. Its stated purpose: “to rein in compensation practices that encourage excessive risk-taking at the expense of companies, shareholders, employees, and ultimately the American taxpayer.” According to House Financial Services Committee Chairman Barney Frank (D-Mass.), this bill “represents the first piece of a larger regulatory reform package being crafted by the Financial Services Committee to address the causes of the recent financial crisis.” See a summary of the bill here: http://www.house.gov/apps/list/press/financialsvcs_dem/summary_of_h.r._3269.pdf

142. July 31 — Five more banks are closed bringing the total to 69 through the end of the first seven months of the year. Failed banks include: First State Bank, Altus, with total assets of $103.4 million, and estimated costs to the DIF of $25.2 million; Integrity Bank, Jupiter, Fla., with total assets of $119 million, and estimated costs to the DIF of $46 million; Peoples Community Bank, West Chester, Ohio, with total assets of $705.8 million, and estimated costs to the DIF of $129.5 million; First Bank Americano, Elizabeth, N.J., with total assets of $166 million, and estimated costs to the DIF of $15 million; and Mutual Bank, Harvey, Ill., with total assets of $1.6 billion, and estimated costs to the DIF of $696 million.

Note: So far total costs to the DIF in 2009 from bank failures have reached more than $14.3 Billion. In addition to the 72 banks that have been closed this year, eight (8) credit unions have also been either closed or merged into another credit union.

143. July 31 — Taylor, Bean & Whitaker effort to put buying consortium together for Colonial BancGroup collapses. Colonial ($26 billion in total assets, based in Montgomery, Ala.) warns of “substantial doubt” about whether it's able to continue operations. The bank posted a net loss for the Second Quarter of more than $600 million.

144. August 3 — Bank of America agrees to settle a civil lawsuit filed by the SEC against the Bank for $33 million. The suit alleges the bank had misled shareholders about bonuses to be paid to Merrill employees following its acquisition of the firm. B of A neither admitted nor denied the allegations. (The Wall Street Journal, August 4, 2009, p.1.)

145. August 3 — Federal agents from the office of the Inspector General for the Troubled Asset Relief Program raid the Ocala, Fla., offices of Taylor, Bean & Whitaker and the Colonial BancGroup office in Orlando, Fla.

146. August 4 — The Department of Housing and Urban Development (HUD) suspends Taylor, Bean & Whitaker from originating and underwriting FHA-insured mortgages. The suspension results from a failure to submit a required report and because of irregularities in connection with nontraditional loans that raise concerns about fraud. The Government National Mortgage Association (GINNIE MAE) also announces it is terminating Taylor, Bean as an issuer and a servicer for its mortgage-backed securities program. GINNIE MAE will take control of the $25 billion Taylor, Bean GINNIE MAE portfolio. Taylor, Bean was the eighth largest issuer of GINNIE MAE mortgage-backed securities. http://www.hud.gov/news/release.cfm?content=pr09-145.cfm&CFID=22850604&CFTOKEN=32029534

147. August 5 — Taylor, Bean & Whitaker Mortgage Corp. shuts down its mortgage operation. The firm was the third-largest FHA loan originator in the nation according to The Wall Street Journal, and was the endorsed vendor of the Independent Community Bankers Association. More than 1,000 jobs are lost according to news reports.

148. August 6 — U.S. District Judge Jed Rakoff refuses to approve the proposed $33 million settlement between the SEC and Bank of America related to the bank's acquisition of Merrill Lynch. A hearing is set for Aug. 10. (The complaint alleges that B of A told shareholders in proxy documents filed in connection with the proposed merger that Merrill had agreed it would not award performance bonuses or incentive payments to its employees before the merger closed. In fact, it's alleged, B of A had already authorized Merrill to pay up to $5.8 billion in bonuses. Ultimately $3.6 billion was actually paid out.

149. August 7 — Three more banks are closed, bringing the total for the year so far to 72. First State Bank, Sarasota Fla., – Total assets of $463 million and estimated costs to the DIF of $116 million; Community National Bank of Sarasota County, Venice, Fla., – Total assets of $97 million and estimated costs to the DIF of $24 million; Community First Bank, Prineville, Ore., – Total assets of $209 million and estimated costs to the DIF of $45 million.

150. August 10 — Freddie Mac says its loss resulting from the collapse of Taylor, Bean & Whitaker may be “significant”. http://www.bloombergnews.com/apps/news?pid=20601087&sid=agYiF27G8XOk

151. August 12 — Bank of America files suit against Colonial BancGroup and asks for a temporary restraining order to keep the Birmingham, Ala.,-based bank selling or otherwise disposing of assets it holds in a custodial capacity. Bank of America also demands more than $1 billion from the $26 billion holding company. Bank of America served as collateral agent for loans originated by Ocala Funding LLC, a fund sponsored by Taylor, Bean & Whitaker Mortgage.

152. August 13 — A Federal Judge issues a temporary restraining order preventing Colonial Bank from selling or otherwise disposing of assets worth $1 billion. “Viewing Colonial's contractual breach in conjunction with the fact that Colonial is on the brink of collapse and is suspected of criminal accounting irregularities, the potential for immediate substantial injury to Bank of America is clear," said U.S. District Court Judge Adalberto Jordan. The FDIC begins to scramble to deal with the latest round of bad news about Colonial, which has significant real estate operations in Florida and across the South. Colonial's failure would be the fifth largest bank failure in U.S. history, following Washington Mutual (2008 – $307 billion); Continental Illinois (1984 – $40 billion); IndyMac FSB (2008 – $32 billion); and American Savings and Loan (1988 – $30.2 billion).

153. August 14 — BB & T, based in Winston-Salem, N.C., agrees to buy the deposits and some assets including branch locations of Colonial BancGroup, but will not the loans and other financial assets it holds, according to news reports. The FDIC brokers the deal late on Aug. 13.

154. August 21 — Four more banks are closed, a total of 81 so far this year. The closed banks included: Guarantee Bank, Austin, Texas, a $13 billion bank the deposits of which were assumed (except brokered deposits) by BBVA Compass Bank (parent corporation in Spain) of Birmingham, Ala.. BBVA also agreed to purchase about $12 billion in assets and entered into a loss-sharing arrangement with the FDIC covering $11 billion of those assets. Estimated costs to the DIF are $3 billion. Capital South Bank, Birmingham, Ala., a $617 million bank the deposits of which were assumed by IBERIABANK, Lafayette, La., (except brokered deposits). It also agreed to purchase $589 million of its assets, and has a loss-sharing arrangement with the FDIC on $499 million of the purchased assets. Initial estimated costs to the DIF are $151 million. First Coweta, Newnan, Ga., a $167 million bank the deposits of which were assumed by United Bank, Zebulon, Ga., (except brokered deposits). United agreed to purchase $155 million of the failed bank's assets, and entered into a loss-sharing arrangement with the FDIC on $124 million of that amount. Estimated costs to the DIF initially are $48 million. eBank, Atlanta, Ga., a $143 million bank, the deposits of which were assumed by Stearns Bank, N.A., St. Cloud, Minn. In addition, Stearns agreed to purchase virtually all of the failed bank's assets, and entered into a loss-sharing arrangement with the FDIC on $111 million of that amount. Total costs to the DIF are estimated initially at $63 million.

155. August 25 — President Obama announces he will reappoint Ben Bernanke as Chairman of the Federal Reserve.

156. August 26 — Mount Sinai Federal Credit Union, a $17.7 million credit union in Miami, Fla., was merged into People Credit Union because Mount Sinai was deemed to be “critically undercapitalized and in danger of insolvency.”

157. August 26 — FDIC adopts rule extending the Transaction Account Guarantee Program through June 2010. The program will continue to provide full, unlimited coverage for non-interest bearing transaction accounts. Participation fees are increased from 10 basis points to 15, 20 or 25 depending on the bank's risk category.

158. August 26 — FDIC Board adopts policy on allowing private investment firms to purchase failed banks. http://www.fdic.gov/news/board/Aug26no2.pdf

159. August 27 — June 30 numbers released showing the industry losses for the Second Quarter total $3.7 billion. The list of problem banks grew to 416, with total assets of almost $300 billion – the largest level since Dec. 31, 1993. The DIF stands at $10.4 billion (0.22 percent of deposits), plus contingent reserves of $32 billion. Observers note another special assessment is “highly probable.”

160. August 28 — Allco Credit Union, West Allis, Wisc., announces it is “partnering with Landmark!” after a forced marriage by the NCUA. At one point Allco was an $86 million credit union and had been shopped for months to prospective buyers. Its assets dropped to $52 million and reported a loss of $705,000 for the first half of the year.

161. August 28 — Three more banks are closed, bringing the total to 84 for the year: Bradford Bank, Baltimore, Md., a $452 million thrift whose deposits were assumed and assets purchased (under a loss-sharing arrangement with the FDIC) by Manufacturer's and Traders Trust Company, Buffalo, NY. Initial estimated costs to the DIF are $97 million. Mainstreet Bank, Forrest Lake, Minn., a $459 million bank the deposits of which were assumed by Central Bank, Stillwater, Minn. Central also agreed to by essentially all of the failed bank's assets under a loss-share arrangement with the FDIC. Initial estimated costs to the DIF are $95 million. Affinity Bank, Ventura, Calif., was a $1 billion bank the deposits of which were assumed by Pacific Western Bank, San Diego, Calif. Pacific Western also agreed to purchase most of the failed bank's assets under a loss-share arrangement with the FDIC. Initial loss to the DIF is estimated at $254 million.

162. August 31 — Kaiser Lakeside Credit Union, a $24 million credit union located in Oakland, Calif., is closed by the California Department of Financial Institutions. SafeAmerica Credit Union, Pleasanton, Calif., agreed to purchase and assume some of the failed credit union's assets and liabilities, which was established in 1953 to serve the employees of Kaiser Industries. It ultimately expanded to serve the residents of Alameda and Contra Costa counties. In addition, Free Choice Federal Credit Union, a $326,000 credit union in Feasterville, Pa., was closed and its assets were liquidated. Deposits (share accounts) were assumed by Trumark Financial Credit Union, Trevose, Pa.

163. September 1 — Landmark Credit Union absorbed First Security Credit Union, a $36 million entity at one time headquartered in Elm Grove, Wisc. Earlier in the year Landmark had also absorbed two other credit unions in Wisconsin.

164. September 1 — FDIC Chairman Sheila Bair tells CNBC's Larry Kudlow that consumer deposits “are as safe as they can be” in the nation's banks during a lengthy interview; says the Agency is not planning to draw on its line of credit with the Treasury.

165. September 4 — Five more banks are closed, bringing the total to 89 for the year. First Bank of Kansas City, Mo., a $16 million bank – deposits were assumed by Great American Bank, DeSoto, Kan., with an estimated initial cost to the DIF of $6 million. InBank, Oak Forest, Ill., a $212 million bank – deposits were assumed by MB Financial Bank, N.A., Chicago, Ill., and initial costs to the DIF are estimated at $66 million. Vantus Bank, Sioux City, Iowa, a $458 million bank – deposits were assumed by Great Southern Bank, Springfield, Mo., and initial costs to the DIF are estimated at $168 million. Platinum Community Bank, Rolling Meadows, Ill., a $345 million bank – there was no buyer resulting in a payout to depositors and projected initial cost to the DIF of $114.3 million. First Bank, Flagstaff, Ariz., a $105 million bank. Deposits were assumed by Sunwest Bank, Tustin, Calif., and initial estimated costs to the DIF are $47 million.

166. September 9 — The Federal Deposit Insurance Corporation Board adopts a Notice of Proposed Rulemaking reaffirming that the debt guarantee component of the Temporary Liquidity Guarantee Program (TLGP) will expire on Oct. 31, 2009.

167.  September 11 - Three more banks are closed, including Corus Bank, N.A., a $7 Billion condominim development bank located in Chicago.  It becomes, in essence, the first major bank to secumb to the commercial real estate problems facing the nation.  MB Financial of Chicago assumed the bank's deposits and purchased $3 Billion in cash and marketable securities from the FDIC as receiver.  The FDIC announces plans to dispose of the remaining assets in a private placement within 30 days.  Estimated costs to the DIF are $1.7 Billion.  Also closed on this date are Brickwell Community Bank. Woodbury, MN ($72 Million in total assets) and Venture Bank, Lacy, WA ($970 Million in total assets).  Brickwell's deposits are assumed and its assets purchased by CorTrust Bank, Mitchell, SD.  Estimated costs to the DIF are $22 Million.  Venture Bank's deposits are assumed by First Citizens Bank & Trust, Raleigh, NC, and First Citizens agrees to purchase $874 Million of the failed bank's assets.  It enters into a loss-sharing agreement with the FDIC on $715 Million of that total.  The three bank failures bring the total for the year to 92.

168.  September 14 - More than 60 Oklahoma bankers meet with representatives of the U.S. Treasury to express their views about what the proposed Consumer Financial Protection Agency means to traditional community banks which were not the cause of the near-collapse of the nation's financial system one year ago.  The sometimes-contentious meeting led most bankers to the conclusion that Treasury simply doesn't care about the practical impact of their proposed "solution" to the nationi's problems.

169.  September 15 - At a breakfast with 60 Oklahoma bankers FDIC Director Tom Curry cautiously advises the group that "all options (for replenishing the Deposit Insurance Fund) are on the table" including consideration of issuing some sort of debt instrument like FICO bonds to enable banks to amortize the recapitalization effort over timel.

170.  September 16 - FDIC publishes Foreclosure Prevention Tool Kit in an effort to help stem the tide of the growing number of "unnecessary" foreclosures and foreclosure scams being found in the marketplace.  http://www.fdic.gov/consumers/loans/prevention/toolkit.html  .   

171.  September 18 - In a speech at Georgetown University, FDIC Chairman Sheila Bair states that Too-Big-To-Fail has got to stop.  "This too-big-to-fail doctrine creates a vicious cycle that needs to be broken. Large firms can borrow more cheaply and on more favorable terms because the market assumes the government will not let them fail. Equity investors also have relied on an implicit government guarantee – with an unlimited upside, but a very limited downside. In effect, the largest firms socialized their risks and costs – by not paying for equity and credit based on their true risk – while keeping the enormous profits during good times."  http://www.fdic.gov/news/news/speeches/chairman/spsept1809.html   She also suggests the FDIC Board is considering drawing on the Agency's $500 Billion line of credit with the Treasury. 

172.  September 18 - Two more banks are closed, brining the total for the year to 94.  Irwin Union Bank, FSB, Louisville, KY, and Irwin Union Bank & Trust Co., Columbus, IN both banking subsidiaries of Irwin Financial Corporation of Columbus, IN, were closed and their deposits were assumed by First Financial Bank, N.A. of Hamilton, OH.  The bank had total assets of $2.1 Billion, and the savings bank had total assets of $493 Million.  Costs to the DIF are estimated at $850 Million.

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[1] For a fascinating account of the firm's demise and collapse, see The Last Days of Bear Stearns,” by Roddy Boyd, Fortune Magazine, http://money.cnn.com/2008/03/28/magazines/fortune/boyd_bear.fortune/

[2] http://en.wikipedia.org/wiki/Bear_Stearns

[3] H.R. 3221, Pub Law 110-289.

[4] Net asset values of the shares of the mutual fund fell below $1 per share to 97¢.

[5] Through the end of June, 2009, the Treasury Department had invested a total of $203.2 Billion in 650 institutions. Eleven entities have repaid the CPP funds in the amount of $68.3 Billion. The total outstanding investment for Treasury at 6/30/09 was $133.1 Billion.

[6] http://www.treasury.gov/initiatives/eesa/homeowner-affordability-plan/FactSheet.pdf

[7] http://cop.senate.gov/reports/library/report-071009-cop.cfm

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