March 11, 2013 |
Three years ago, the Federal Deposit Insurance Corp. collected $54 million from Deutsche Bank in a settlement over unsound loans that contributed to a spectacular California bank failure. The deal might have made big headlines, given that the bad loans contributed to the largest payout in FDIC history, $13 billion. But the government cut a deal with the bank's lawyers to keep it quiet: a "no press release" clause that required the FDIC never to mention the deal "except in response to a specific inquiry.
March 5, 2013 |
KABUL, Afghanistan - An Afghan tribunal handed down the first jail sentences Tuesday in the colossal Kabul Bank corruption case, sentencing the two former top executives to five-year sentences and ordering them to repay hundreds of millions of dollars in embezzled funds. The convictions of former bank Chairman Sherkhan Farnood and former Chief Executive Officer Khalilullah Ferozi were the first to stem from the conspiracy by politically connected Afghans to loot the country's biggest bank, whose collapse in 2010 nearly brought down the war-beaten economy.
November 28, 2012 |
SAROBI, Afghanistan -- Afghanistan, notorious for institutionalized corruption, has reached breathtaking new levels of officially sanctioned theft as fresh details emerge of a massive conspiracy to loot the privately owned Kabul Bank. An independent review released Wednesday said hundreds of millions of dollars was embezzled in a sophisticated scheme that allegedly involved close associates of President Hamid Karzai, including his brother. The review described brazen fraud driven by cronyism and nepotism, perpetrated by politically connected Afghans who stole the bank's deposits and forced its collapse.
August 12, 2012 |
The demise of Washington Mutual Bank in September 2008 resounded across the U.S. and internationally, but it was overshadowed by the catastrophic failure of Lehman Bros. At any other time WaMu's collapse would have been big news. But as Sheila Bair, former head of the Federal Deposit Insurance Corp., recalls: "It was below the fold, if it was even on the front page.... It was the largest bank failure in history, but it was really a blip given everything else that was going on. " In a new book from Simon & Schuster, "The Lost Bank: The Story of Washington Mutual — The Biggest Bank Failure in American History," author Kirsten Grind, a Wall Street Journal reporter, deftly restores the "lost bank" to its rightful place in the annals of financial disasters.
April 27, 2012 |
Palm Desert National Bank was seized by regulators Friday and sold to Pacific Premier Bank of Costa Mesa, which promised to be open for business as usual Monday. The Federal Deposit Insurance Corp. said depositors of the one-branch bank would be unaffected because Pacific Premier agreed to take all $123 million in Palm Desert deposits. Pacific Premier President Stephen Gardner said customers of the Palm Desert bank "will continue to conduct business as normal with the employees with whom they have built a solid long-term relationship.
March 9, 2012 |
California-based banks expanded lending much faster over the last year than the national average for the industry, reflecting an economic recovery taking hold in the Golden State, according to a study conducted for the California Bankers Assn . The study, produced by Los Angeles research firm Beacon Economics, said loan volumes overall are up more than 8% at banks headquartered in California since bottoming out in 2010. In the remainder of the United States, lending bottomed out a year later and is now up by just 1%. Commercial and industrial loans, which are non-real-estate loans to businesses for expansion, equipment purchases and the like, led the way. The Beacon analysis said that since hitting bottom early last year, such lending by California-based commercial banks has risen 15%. Commercial and industrial loans at California banks totaled nearly $51 billion at the end of last year, according to the Federal Deposit Insurance Corp.