Troubled Bank List

Posted By: Cornfed Turtle

Troubled Bank List - 01/09/09 03:16 PM

Other than the "increased regulatory scrutiny" that comes along with inclusion on the list.....does anyone know of any specific things in which a troubled bank can no longer participate? Could they sell mtgs, borrow fed funds, do SBA loans, etc? From my internet searching - - it looks like they would be following some plan that their regulator has outlined that is specific to their troubles.

And, no, not my bank or any bank I know.....just general education.
Posted By: Phoenix

Re: Troubled Bank List - 01/12/09 03:23 PM

Need a better definition of "troubled bank" - the regulations give more specific guidance based on a bank's capital, not on its "troubles".
Posted By: Jokerman

Re: Troubled Bank List - 01/12/09 06:17 PM

The C&D / written agreement would include specific prohibitions and requirements. But, as Phoenix notes, failure to maintain well-capitalized status would also trigger some restrictions, such as non-renewal/origination of brokered deposits (w/o a waiver).
Posted By: BrendaC

Re: Troubled Bank List - 01/12/09 07:01 PM

FDIC pass-through insurance requirements provide for notifying certain customers if the bank is less than well capitalized.