Bank closures frighten me!

sisterpine · #1 08/24/13, 07:23 PM

This on my yahoo news page...

2013

Regulators have closed small banks in Tennessee and Arizona, bringing the number of U.S. bank failures to 20 this year.
The Federal Deposit Insurance Corp. says it seized Community South Bank, based in Parsons, Tenn., with 15 branches and about $386.9 million in assets and $377.7 million in deposits as of June 30. It also shuttered Phoenix-based Sunrise Bank of Arizona, with six branches, $202.2 million in assets and $196.9 million in deposits.

Ozarks Tom · #2 08/24/13, 08:57 PM

If they held the BIG banks to the same standards as the small ones there wouldn't be any banks. Their balance sheets should be filed under "fiction".

I_don't_know · #3 08/25/13, 09:14 AM

Time line
1. 2006 -- Mortgage payment is on direct payment $477.78

2. 1/2007 – Bank 1, requested a payment of $576.83, a $99.05 difference, it was made. The direct payment was still set up but they made no other requests for payment. I have the bank statements to show this.

3. 2008 –Bank 1, was absorbed by Bank 2. Bank 2 did not acknowledge the existence of the mortgage.

4. 2010 – I discovered the mortgage payments were not being made. (this is my daughters home) I tried to tell Bank 2; they denied there was a delinquency.

5. The manager gave me her card with the account number they were taking payments from. It was not my daughters account. I still have the card.

6. Bank2 has sent emails thanking her for payments of $1,276.72 she did not make. I have copies of the emails.

7. 2911 – daughter did not have a copy of the mortgage or note I started requesting a copy from the bank. They could not produce one. It has now been 3 years and they still cannot.

8. We received letters from Bank2 for a year requesting time to do more research.

9. 2012 - Bank2 offered to modify her mortgage; taking the payment from $477.78 up to $900. Daughter is disabled and receives $1,025 per month

10. 12/24/2012 - We received foreclosure papers from Bank 3 using copies of the note and mortgage, and to top it off, the note has a robo-signature.

From the start of 2007 until 2011, 4 years, neither Bank 1nor Bank 2 was aware of the lack of payments. Was the mortgage sold by Bank 1 as part of a package in an attempt to prevent its own failure? Was the $99.05 to close out their books?

Given the banking scandals of the time, and the conduct of both Bank 1 and Bank 2, I had strong doubts as to just “who” actually held the mortgage. I also wonder if Bank 2 has ever reimbursed the account they said they were taking payments from? Did the person who’s $1,276.72 payments we were getting credit lose their home?

Any bank that behaves like this is not too big to fail…it is too big to function.

SteveD(TX) · #4 08/25/13, 09:36 AM

Quote:

Originally Posted by sisterpine

This on my yahoo news page...

2013

Regulators have closed small banks in Tennessee and Arizona, bringing the number of U.S. bank failures to 20 this year.
The Federal Deposit Insurance Corp. says it seized Community South Bank, based in Parsons, Tenn., with 15 branches and about $386.9 million in assets and $377.7 million in deposits as of June 30. It also shuttered Phoenix-based Sunrise Bank of Arizona, with six branches, $202.2 million in assets and $196.9 million in deposits.

Why do they frighten you? Business as usual. If you think it's scary now, in the 1980's it was much worse. A good friend of mine who worked for the Comptroller of the Currency, was in charge of doing the closing in this region - when he walked into a bank, they knew it was over.

Sawmill Jim · #5 08/25/13, 09:38 AM

I think is was Jessie James that said banks are for with drawls not deposits . They can confiscate my accounts anytime and i'll still be ahead

**Shrek** · #6 08/25/13, 10:21 AM

My small town bank has been closed five times between 2004 and 2011. I still bank with the same tellers in the same building and am still using checks with the third bank name on them as I bought 3 boxes of checks then and the routing and account numbers have always been maintained during each closing and transfer buyout of assets and accounts.