Um not peculiar to Naija it apparently seems . . .

[size=16pt]Five banks closed by U.S. regulators[/size]

WASHINGTON (Reuters) - Bank regulators closed four Midwestern banks and one in Arizona on Friday, bringing to 89 the number of U.S. banks to fail this year as deteriorating loans continue to take their toll on financial institutions.

The closed banks were Vantus Bank in Sioux City, Iowa, InBank in Oak Forest, Illinois, Platinum Community Bank of Rolling Meadows, Illinois, the First Bank of Kansas City in Missouri and the First State Bank of Flagstaff, Arizona, the Federal Deposit Insurance Corp said.

Vantus Bank was the largest of the five institutions to close, with total assets of $458 million and total deposits of about $368 million.

InBank had total assets of $212 million and total deposits of about $199 million while the First State Bank of Flagstaff, Arizona had total assets of $105 million and total deposits of approximately $95 million as of July 24. The First Bank of Kansas City, which has one branch, had total assets of $16 million and total deposits of about $15 million.

The Office of Thrift Supervision said that Platinum Community Bank had total assets of $148 million while the FDIC estimated its assets as $345.6 million as of August 29, 2009.

The five failures will cost the FDIC deposit insurance fund an estimated $401.3 million, the agency said.

In 2008, 25 U.S. banks were seized by officials, up from only three in 2007.

The insurance fund's balance dipped to $10.4 billion at the end of the second quarter, but that level does not include the additional $32 billion that the FDIC has set aside to cover the cost of bank failures over the next year.

In September, Seattle-based lender Washington Mutual became the biggest bank to fail in U.S. history, suffering from losses from soured mortgages and liquidity problems.

The FDIC will insure up to $250,000 per account at the closed banks.

The agency also has running a tally of problem banks that its examiners closely monitor. At the end of the second quarter, 416 undisclosed institutions were on that list.

FDIC Chairman Sheila Bair has said bank failures will remain elevated even as the economy begins to recover because the bank industry is continuing to recognize loan losses and clean up their balance sheets.

She has said the industry's woes are migrating from residential loans and complex securities to more conventional types of retail and commercial loans that have been hit hard by the recession. (Reporting by Diane Bartz; editing by Carol Bishopric)

for SOURCE: Click here

more to come

@Poster, why do you want to compare this to the Nigerian situation when Nigerian banks were rarely scratched by the meltdown as caused by the housing crisis?

How many of their CEO's have been thrown in jail by the FBI? Sounds ridiculous right? Thats because you cannot compare US and Nigerian situations, they follow legal processes; in Nigeria, we forge processes and forge their and consequences.

we won't hear much noise about this one on CNN now but if it was nigeria, then the headline will be "NIGERIAN SCAM BANKS CLOSED".

Rebarobyn:

we won't hear much noise about this one on CNN now but if it was nigeria, then the headline will be "NIGERIAN SCAM BANKS CLOSED".

You won't hear much noise about what on CNN? Is CNN America? If I watch CNN and I hear of this daily, but you don't even watch CNN for this, does that mean CNN is the problem here? Why not be honest even in this? The CBN governor just closed 5 big banks and plans to sell them off, regardless of what the shareholders think, is that really the same as what is happening with these american banks?

there is nothing I can do about it, the govt. just needs to put stiffer measures in place to trail and punish scammers. that being said, i think the whole Nigerian scam thing is now being blown out of proportion, not all scammers are Nigerians, in fact the top dogs in scamming are Americans but then it goes back to the point I was trying to make in my first post, the American media will do anything to protect America's image and make others look really bad by exaggerating stuff.

MrCrackles you are right,

Kobojunkie:

You won't hear much noise about what on CNN? Is CNN America? If I watch CNN and I hear of this daily, but you don't even watch CNN for this, does that mean CNN is the problem here? Why not be honest even in this? The CBN governor just closed 5 big banks and plans to sell them off, regardless of what the shareholders think, is that really the same as what is happening with these american banks?

CNN is soooooo American and I wasn't comparing nigerian and american banks, I was just pointing out what would most likely happened if they were Nigerian banks.

Rebarobyn:

there is nothing I can do about it, the govt. just needs to put stiffer measures in place to trail and punish scammers. that being said, i think the whole Nigerian scam thing is now being blown out of proportion, not all scammers are Nigerians, in fact the top dogs in scamming are Americans but then it goes back to the point I was trying to make in my first post, the American media will do anything to protect America's image and make others look really bad by exaggerating stuff.

Not a single person, media house etc has ever claimed all Scammers are Nigerian. That would have to be your own insecurity as an individual.
To claim Nigerian scam thing is blown out of proportion, is to claim their is nothing wrong with the Nigerian system at all. Both lies if ever told. Billions of dollars in scams linked to Nigerians both international and from within the shores of the country and you claim it is being blown out of proportion?

And to your mention of the TOP DOGS of scammers being Americans, I ask where are they now? Are they still scamming or rotting away in some jail now? Simple question to help you understand how you cannot make a point by claiming top scammers are american when these same scammers are mostly rotting in jail, with their families and friends living with the SHAME and consequence of their scams to this day.

Rebarobyn:

CNN is soooooo American and I wasn't comparing nigerian and american banks, I was just pointing out what would most likely happened if they were Nigerian banks.

CNN is NOT AMERICA, as that would imply that MAJORITY OF Americans get their news from CNN which is not necessarily the case. I haven't watched CNN in over 6 months. I have not even watched most of the major News houses in longer. Again, if you do not watch CNN, how would you know if the media house aired the same news or not? If you at least google, you would find that CNN gets it's news from Reuters as well.

By the way, by making the comparison you did in your initial post, you compared the Nigerian situation to the American situation - a mistake that most Nigerians make when looking for ways to soothe their minds and somewhate justify the situation in Nigeria.

kobojunkie & mr. crackles
no need to go back and forth arguing on this. there are lots of scammers in Nigeria and our govt is not doing enough- I'm not denying these. what i am just trying to say is that most foreign media exaggerate our negative sides but when they have problems they "edit" it so as not to look too bad.

Rebarobyn:

kobojunkie & mr. crackles
no need to go back and forth arguing on this. there are lots of scammers in Nigeria and our govt is not doing enough- I'm not denying these. what i am just trying to say is that most foreign media exaggerate our negative sides but when they have problems they "edit" it so as not to look too bad.

Sorry, I have to say you are dead WRONG on that. Africa is now the butt of jokes, not because of the western media but because we have continued to prove to the world over and over that we are not as competent as thought to be. From our handling of the scamming cases, to the high level of corruption in that continue that continues to go unchecked; from the inhumane treatment of our own people  to the low level of education as a result of our own ineptitude -- we have shown the world that the images and views being broadcasted as not far from reality.

Unless you want the world to close their eyes to facts and pretend things are good with you. . . is that what you would prefer?? About them turning their nose and editing info on self. May I suggest you actually watch CNN rather than making baseless claims? I stopped watching CNN some months ago, to give myself a break from all the vile and continuous ramblings on the negatives and not much positive news from government most. Anyone who spent the last 4 years in America would, if honest, tell you that the media actually does a good job when it comes to harming the american image just as much as it does other countries out there with news. America's global image plummetted because the western media, along with other media houses aired and continue to air america's dirty laundry out in the open.

Point --- Stop trying to blame Nigeria/Africa's image problems on the media. Own up to the problems we have and start working to fix them. when you do, then the world will start to see you differently. Even the Chinese who get FILTERED NEWS now have issues with Nigerians. Do you not see a problem there?? What next? Are you going to blame ASIAN NEWS MEDIA for Nigeria's bad image in Asia?

Kobojunkie:

Sorry, I have to say you are dead WRONG on that. Africa is now the butt of jokes, not because of the western media but because we have continued to prove to the world over and over that we are not as competent as thought to be. From our handling of the scamming cases, to the high level of corruption in that continue that continues to go unchecked; from the inhumane treatment of our own people  to the low level of education as a result of our own ineptitude -- we have shown the world that the images and views being broadcasted as not far from reality.

Unless you want the world to close their eyes to facts and pretend things are good with you. . . is that what you would prefer?? About them turning their nose and editing info on self. May I suggest you actually watch CNN rather than making baseless claims? I stopped watching CNN some months ago, to give myself a break from all the vile and continuous ramblings on the negatives and not much positive news from government most. Anyone who spent the last 4 years in America would, if honest, tell you that the media actually does a good job when it comes to harming the american image just as much as it does other countries out there with news. America's global image plummetted because the western media, along with other media houses aired and continue to air america's dirty laundry out in the open.

Point --- Stop trying to blame Nigeria/Africa's image problems on the media. Own up to the problems we have and start working to fix them. when you do, then the world will start to see you differently. Even the Chinese who get FILTERED NEWS now have issues with Nigerians. Do you not see a problem there?? What next? Are you going to blame ASIAN NEWS MEDIA for Nigeria's bad image in Asia?

It seems you are just reading portions of my posts and picking on things you want to believe I am insinuating. I am not blaming them for our bad image neither am I denying that we have major corruption and criminal issues in Nigeria, I am just saying that they exaggerate negative stories from third world countries like Nigeria while they understate their own social and moral ills. one example is the Iraqi war, when CNN was reporting on the Iraqi war, most of the emphasis was on american/british soldiers injured by insurgents' bombings, they never reported the several stories on the injured and killed civilians especially women and children that american missiles killed.

P.S. I watch CNN, good night.

Rebarobyn:

It seems you are just reading portions of my posts and picking on things you want to believe I am insinuating. I am not blaming them for our bad image neither am I denying that we have major corruption and criminal issues in Nigeria, I am just saying that they exaggerate negative stories from third world countries like Nigeria while they understate their own social and moral ills.

The exaggeration you claim apply, not only to third world countries, but also their reporting of incidents here in America. It makes little sense to claim it applies only to their reports on third world countries.

Rebarobyn:

one example is the Iraqi war, when CNN was reporting on the Iraqi war, most of the emphasis was on american/british soldiers injured by insurgents' bombings, they never reported the several stories on the injured and killed civilians especially women and children that american missiles killed.
P.S. I watch CNN, good night.

Sigh!! This is the same CNN that was accused of ignoring the progress that was being made in Iraq but kept their focus on exaggerating the bombings and pushing claims that Iraq was eventually going to fall into civil war, even as there were real plan for a draw down? Come on!! Be FAIR!!!

By the way, here is the report for you since you seem to have missed it
http://money.cnn.com/2009/09/04/news/companies/bank_failures/?postversion=2009090421

I don't even watch CNN and the reason being because I know they EXAGGERATE news for hype and that includes news on American politics. Just recently, I watched one of the news media's claiming there was expected outbreak of Swine Flu, that same morning, as I got on the train, I noticed I was about one of the few without a mask on. I got to work in fear and called my mum who denied such a claim and told of how all seemed well where she was.


My point is the media deals with EXAGGERATING FACTS. That is what the media, be it western, asian or African, is in the business of doing. They do it to everyone and everything they can to raise their ratings and audience. Choosing then to blame the media or push some of our problems on them is ridiculous at best. It is sort of like claiming Pictures exaggerate our flaws when that is images do, no matter what and that is why there is a billion dollar industry around better managing those flaws to make us happier with the falsehood that results.

please tell sanusi to learn from the usa the proper way to go after
insolvent banks!

Northern agenda

it happens everywhere. Step are taking to prevent more occurrence of meltdown

I think people still miss the point on this Naija banks issue. I don't think anyone is blaming Sanusi for stepping in when he did. The grouse most people have with him is the way he has handled the Bank chiefs as if they are the worst criminals Nigeria has produced. The arguement is, if at all Sanusi discovered anything wrong and he has no hidden agenda, why the rush in 'dealing with' the bank chiefs even before completing the audit of all banks, why the rush in selling the banks?

Like someone rightly stated, the US bank regulators didn't send the bank chiefs to jail did they?

As for foreign news agencies exaggerating news from third world countries, I don't think anyone can really dispute that. The reason is simple, its the NEWS that sells! Also, third world countries do not have the resources to water down news like its done in the UK and US. Both govts spend loads of money every year to water down news that gets to the people.
My only advice is for home news agencies (NTA, etc) to do their work as they should.

I see that this discussion has digressed into the 'Nigerian' situation.
I think its instructive that even the so-called highly esteemed, internationally acclaimed
industry practicioners and thought leaders dont know 'everything' about finance, marketing and economics afterall.
That's the imperfection called human knowledge and intellectual ability. We all goofed.
we all have to start an unlearning process and not take anybody's word as a standard rule.

still, sanusi has to go before he does more damage to the system by
his ill-thought-out hasty approach to things.

this is a far cry from the situation in our banks, the american banks loaned money to ordinary american people to buy houses, cars etc and when most lost their jobs due to all the prevalent issues in their country, they could not meet their repayments and in turn the banks had major issues to cope with.
in nigeria all the billions owed this few banks are held by not more than 50 individuals/companies, and most of them are cronies of the ceo or thier family,

FerrariGP:

this is a far cry from the situation in our banks, the american banks loaned money to ordinary american people to buy houses, cars etc and when most lost their jobs due to all the prevalent issues in their country, they could not meet their repayments and in turn the banks had major issues to cope with.
[size=14pt]in nigeria all the billions owed this few banks are held by not more than 50 individuals/companies, and most of them are cronies of the ceo or thier family, [/size]

ose ooo!!! That anyone would expect the situation in Nigeria to be reported in the same light that in the US or EU is being handled escapes me. We are talking of Nigerian banks that essentially denied people, and small businesses access to funds, for decades, now being bailed out with money that belongs to the people.

I can accept bailing out of western banks because these banks are vital to the economies in question (small businesses and individuals benefit in the millions from the survival of these banks), but we all know that ain't even close to what we have in Nigeria. So why expect it to be handled in much the same light? Worse, why expect the media to tone down it's rhetoric when Nigerian, and african governments have refused, for decades, to tone down the stupidity?

LOL It beats me how someone will continue to blab without staying on point or even articulate her stand on the CBN actions.

One time, she frowned at '' the CBN closed 5 Banks'' (wherever she got that from?), another time she alluded to the fact that the CEOs gave loans to their cronies. This woman is impossible

this what reported in the chicago sun times.

two of the fail banks where in Illinois.

general