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bond006
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FDIC takes over 2 more banks, closing 28 branches By BRENDAN RILEY, Associated Press Writer
2 hours, 52 minutes ago



The 28 branches of 1st National Bank of Nevada and First Heritage Bank, operating in Nevada, Arizona and California, were closed Friday by federal regulators.

The banks, owned by Scottsdale, Ariz.-based First National Bank Holding Co., were scheduled to reopen on Monday as Mutual of Omaha Bank branches, the Federal Deposit Insurance Corp. said.

The FDIC said the takeover of the failed banks was the least costly resolution and all depositors — including those with funds in excess of FDIC insurance limits — will switch to Mutual of Omaha with "the full amount of their deposits."

The FDIC also said accountholders can access their funds during the weekend by writing checks or using ATM or debit cards.

As of June 30, the closed banks had total assets of $3.6 billion. That's down from $4.1 billion six months earlier. Most of the assets are in 1st National while First Heritage accounts for $254 million.

Calls to 1st National were referred by a receptionist to Joe Martony, an executive vice president in Scottsdale, Ariz. Martony didn't return repeated calls to his office.

In Nevada, 1st National has 10 branches and employs about 350 people. Five of its branches are in Las Vegas, three are in the Reno-Sparks area, one is in Carson City and one is in Laughlin. Notices of the closure were being posted late Friday.

Fifteen 1st National branches are in Arizona, while Newport Beach-based First Heritage has three branches in Southern California.

Bill Uffelman of the Nevada Bankers Association said Friday the FDIC action "is a reflection of the times for the banks. It's a poor economy."

Uffelman cautioned against the sort of consumer concern that prompted many customers of IndyMac Bank branches to wait for hours in line to withdraw funds across Southern California last week after that bank was seized by federal regulators. All FDIC-insured bank deposits are guaranteed by the FDIC up to $100,000, he noted.

Gov. Jim Gibbons said the bank takeover will be closely monitored in Nevada "to ensure there's minimal disruption to business and that employees' jobs are protected as much as possible."

Arizona Gov. Janet Napolitano spokeswoman Shilo Mitchell said in a statement that the FDIC's takeover of 1st National is not indicative of the overall banking climate in Arizona.

"It's very important that Arizonans know that their deposits are secure," said Felecia Rotellini, superintendent of Arizona Department of Financial Institutions. "They are well-managed and the 1st National Bank of Arizona issues should not cause any panic in Arizona."

___

On the Net:

FDIC: http://www.fdic.gov/news/news/press/2008/pr08063.html

1st National Bank of Nevada: http://www.fnbaonlinehb.com

First Heritage Bank: http://www.firstheritage.net

Posts: 6008 | From: phoenix az | Registered: Mar 2005  |  IP: Logged | Report this post to a Moderator
bond006
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Must have been all thoes free loaders that did not make there house payment.

Thats what there goal is going to destroy the country by making themselves homeless.

Damn socialist

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No angry lines of customers after bank takeover
Saturday, July 26, 2008
PHOENIX - Customers of two banks closed by federal regulators were assured that every penny of their money was protected, preventing lines of angry accountholders from forming Saturday.

The calm response was a stark contrast to the hundreds of angry customers who waited for hours earlier this month in Southern California to demand their money after IndyMac Bank's assets were seized.

The 28 branches of the 1st National Bank of Nevada and First Heritage Bank N.A. - owned by Scottsdale, Ariz.-based First National Bank Holding Co. - were closed Friday by the FDIC.

But Mutual of Omaha Bank bought all of the two banks' deposits, even those over the amount protected by FDIC insurance limits. IndyMac customers had to take a loss on whatever amount they had in the bank over the insurance limits.

One 1st National Bank of Nevada in downtown Phoenix didn't even have a note outside to tell customers about the trouble Saturday. But there were no customers outside to tell.

"I feel like the Maytag repairman - there's just not much to do on the customer side of things," Federal Deposit Insurance Corp. spokesman David Barr said. "There's going to be no impact on the depositors whatsoever, except basically a name change," Barr said.

Insurance limits are typically $100,000, but some accounts, such as joint accounts, can have more money protected, Barr said.

On Monday, Mutual of Omaha will open the banks as its own branches, Barr said. During the weekend, accountholders can access their funds by writing checks or using ATM or debit cards.

Jeff Schmid, chairman and CEO of Mutual of Omaha Bank, said the acquisition of the new accounts aligns with the company's growth strategy to get aggressive with banking.

"We're very optimistic about these markets," said Schmid, who was in Scottsdale on Saturday to speak with his new employees. "This could be our finest hour."

Mutual of Omaha Bank has $800 million in assets and operates 14 retail branches in Nebraska and Colorado. It's a subsidiary of Mutual of Omaha, a 99-year-old insurance and financial services company with more than $19 billion in total assets.

The Office of the Comptroller of the Currency said in a news release that 1st National was undercapitalized and had experienced substantial dissipation of assets and earnings "due to unsafe and unsound practices."

Those practices "also weakened the bank's condition and seriously prejudiced the interests of the bank's depositors and the deposit insurance fund."

Another news release said First Heritage was critically undercapitalized and was likely to incur losses that would deplete all or nearly all of its capital.

As of June 30, the closed banks had total assets of $3.6 billion. That's down from $4.1 billion six months earlier. Most of the assets are in 1st National, while First Heritage N.A. accounts for $254 million.

The FDIC said the takeover of the failed banks was the least costly resolution.

Calls to 1st National executive vice president Joe Martony were not returned Saturday. No one could be reached at the First Heritage N.A.

1st National has 10 branches in Nevada and 15 branches in Arizona. First Heritage N.A. has three branches in Southern California.


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Posts: 6008 | From: phoenix az | Registered: Mar 2005  |  IP: Logged | Report this post to a Moderator
Propertymanager
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quote:
Must have been all thoes free loaders that did not make there house payment.
I see that you're finally starting to get it Bond! However, I don't think all the blame should be placed on the deadbeat homeowners. The banks certainly are also to blame for making reckless loans, and the government is responsible for encouraging the lax lending standards.
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bond006
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What I get is an understanding of why the loans were made and who the victims are.

Some thing that you don't.

The people that took the loans were targeted by the lenders. Offering to give them a chance at the American dream,or spectulators that did well and understood what was really going on lots of them got stuck with the last house or two.

Buy the time investors figured out they were swindled by fraud and fabercated ratings it was to late the folks that came up with the idea were gone or the money was.

A lot of smart fund managers ,banks,and risk managers were swindled and we have not seen the results on that yet.

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glassman
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deadbeat homeowners?

the real problem has very little to do with deadbeats.
many of the "so-called "sub=prime borrowers" would have qualified for prime loans but were steered into what they call non-prime loans...

they tried to do this to me too...

Compared with conventional prime loans in 2006, average down payments were lower, at 6 percent for subprime mortgages and 12 percent for near-prime loans.[4] The relatively small down payments often entailed borrowers' taking out piggyback loans to pay the portion of their home prices above the 80 percent covered by first-lien mortgages.
 -

Another form of easing facilitated the rapid rise of mortgages that didn't require borrowers to fully document their incomes. In 2006, these low- or no-doc loans comprised 81 percent of near-prime, 55 percent of jumbo, 50 percent of subprime and 36 percent of prime securitized mortgages.

The easier lending standards coincided with a sizeable rise in adjustable-rate mortgages (ARMs). Of the mortgages originated in 2006 that were later securitized, 92 percent of subprime, 68 percent of near-prime, 43 percent of jumbo and 23 percent of prime mortgages had adjustable rates. Now, with rates on one-year adjustable and 30-year fixed mortgages close, ARMs' market share has dwindled to 15 percent, less than half its recent peak of 35 percent in 2004.

In early 2007, investors and lenders began to realize the ramifications of credit-standard easing. Delinquency rates for 6-month-old subprime and near-prime loans underwritten in 2006 were far higher than those of the same age originated in 2004.

Other signs of deterioration also surfaced. The past-due rate for outstanding subprime mortgages rose sharply and neared the peak reached in 2002, with the deterioration much worse for adjustable- than fixed-rate mortgages. In first quarter 2007, the rate at which residential mortgages entered foreclosure rose to its fastest pace since tracking of these data began in 1970.

Lenders reacted to these signs by initially tightening credit standards more on riskier mortgages. In the Federal Reserve's April 2007 survey of senior loan officers, 15 percent of banks indicated they had raised standards for mortgages to prime borrowers in the prior three months, but a much higher 56 percent had done so for subprime mortgages. Responses to the July 2007 survey were similar.

However, in the October 2007 survey the share of banks tightening standards on prime mortgages jumped to 41 percent, while 56 percent did so for subprime loans. Many nonbank lenders have also imposed tougher standards or simply exited the business altogether. This likely reflects lenders' response to the financial disruptions seen since last summer.


http://www.dallasfed.org/research/eclett/2007/el0711.html

once the credit market (in general) realised they had gone too far in the loosening of credit (at the behest of the white house)
they over-reacted the other direction... and when they over-reacted by tightening? they basically triggered all of the failures because most of these people were buying on the idea that they could refinance on regular basis and stay liquid that way...

of course the deadbeats contributed to this, but the main reason we are in this mess is too little Due Dilligence, and an attitude that 125% mortgage would be available at low interest indefinitely...

when the FED began raising the prime? all the ARMS began adjusting up... LENDERS told many poeple this just would not happen...

Real Estate agents were telling people ridiculous prices were reasoanble... in other words? people trusted supposed PROFESSIONALS with their lives when they shouldn't have...

it's funny that you call me a leftist and a paranoid, and anti-freemarket.

cuz the "freemarket" atttiude is what made this mess...

and most people were TOO trusting of professional advice and NOT paranoid enough...

these "deadbeats" have jobs and they still can't pay the notes...

--------------------
Don't envy the happiness of those who live in a fool's paradise.

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