Inside these posts: FDIC

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Bank regulators propose swap rules

Energy companies, airlines and other end-users would be mostly exempt from having to put up costly collateral when using uncleared swaps to hedge their business risks, under a proposal issued by U.S. bank regulators on Tuesday. Get the full story »

Regulators hit Oak Park bank over lending law

Federal regulators hit Community Bank of Oak Park River Forest for failing to comply with the federal Community Reinvestment Act. It received the CRA’s worst rating, “substantial non-compliance,” with the law that requires banks to lend and invest in low- and moderate-income neighborhoods. Get the full story

New mortgage-backed securities rules unveiled

U.S. bank regulators on Tuesday unveiled a proposal to overhaul the market for securities backed by mortgages and other assets, a piece of the financial system battered by the recession and financial crisis. Get the full story »

Banks plan to hike dividends after stress tests

JPMorgan Chase & Co, Wells Fargo & Co. and other major U.S. banks plan to boost their dividend payments after passing stress tests evaluated by the Federal Reserve.

The share buybacks signal that regulators view banks as being healthy enough to withstand the remaining uncertainties in the economy, after the banking system has been profitable for a year. Get the full story »

Bill for losses at failed U.S. banks nears $9B

U.S. banking regulators have paid out nearly $9 billion to cover losses on loans and other assets at 165 failed institutions that were sold to stronger companies during the financial crisis. Get the full story »

FDIC sets repayment pecking order for creditors

Creditors who help authorities liquidate a troubled financial firm would be among those paid off first among unsecured creditors, according to a proposal issued by the Federal Deposit Insurance Corp.

Bank and financial services groups have complained that more clarity is needed about how unsecured creditors will be treated under the U.S. government’s new authority to seize large, failing companies. Get the full story »

FDIC: Attempt to save ShoreBank appropriate

During an attempt to rescue South Side lender ShoreBank last year, Federal Deposit Insurance Corp. Chairman Sheila Bair called Wall Street banks soliciting investments in the bank, but a new report by the FDIC’s inspector general concluded the intervention wasn’t inappropriate. The report, released Thursday, also disclosed that the estimated loss to the FDIC’s insurance fund from ShoreBank’s failure has grown substantially since its August failure, standing at $452 million. Get the full story>>

FDIC cites poor management in ShoreBank failure

The failure of Chicago-based ShoreBank was blamed Wednesday on poor risk management by its directors and officers, and its losses to the Federal Deposit Insurance Corp. will be worse than originally expected.

Politically connected ShoreBank, which was known for lending in poorer neighborhoods, “failed due to insolvency brought on by the board and management not implementing adequate risk management practices,” according to a report issued Wednesday by the FDIC’s Office of Inspector General. Get the full story »

FDIC’s Bair sees bank structural changes

Large financial institutions may need to make significant and potentially costly structural changes to comply with new U.S. “living will” requirements, bank regulator Sheila Bair said on Monday. Get the full story »

Community First Bank-Chicago seized

The first bank failure in Illinois in 2011 came Friday when Community First Bank-Chicago was closed by state banking regulators, the Federal Deposit Insurance Corp. said.

Community First Bank has only one branch, at the intersection of Western Avenue and Howard Street. The FDIC said the branch would reopen Saturday as part of Northbrook Bank and Trust Co.

As of Dec. 31, Community First Bank-Chicago had approximately $51.1 million in total assets and $49.5 million in total deposits, the FDIC said. The regulator estimates that the cost of the failure its insurance fund will be $11.7 million.

Metropolitan group banks warned about capital

Most local banks owned by $2.93 billion-asset Metropolitan Bank Group Inc., a Chicago-based lender owned by animal adoption advocates Peter and Paula Fasseas, have been ordered by state and federal banking regulators to shape up. Get the full story »

Bernanke sees growth picking up, but not jobs

The U.S. economy should grow around 3 percent to 4 percent this year, a healthier clip than in 2010 but not enough to bring down unemployment as much as policymakers would like, Federal Reserve Chairman Ben Bernanke said Thursday.

“We see the economy strengthening. It has looked better in the last few months. We think a 3 to 4 percent-type of growth number for 2011 seems reasonable,” Bernanke said at an event sponsored by the Federal Deposit Insurance Corp. Get the full story »

Regulators want $2.5 billion from bank execs

U.S. banking regulators have authorized lawsuits against 109 bank officials so far as they seek to recover at least $2.5 billion in losses connected to recent bank failures.

The Federal Deposit Insurance Corp said on Tuesday the suits target bank directors and officers for “either gross or simple negligence.” It is seeking to recoup money for its deposit insurance fund, which backs customer accounts. Get the full story »

FDIC’s Bair urges support for deficit reduction

Excessive borrowing by the U.S. government poses a “clear danger” to the country’s long-term financial stability, the chairman of the Federal Deposit Insurance Corp. wrote Friday, and “urgent action” is needed to head off another financial crisis. Get the full story »

FDIC gives banks final overdraft rules

Just in time for the holiday shopping season, the Federal Deposit Insurance Corp. on Wednesday gave banks final guidance on how to reduce problems with automatic programs that prevent customers from overdrawing their checking accounts — often with hefty fees attached.

The new guidelines, proposed in August, aim to give people better information about the cost of overdraft protection and to force banks to intervene when customers use the backstop too often. A 2008 FDIC study found that some people were chronically using overdraft protection as a way to obtain short-term — and very expensive — loans.

Standard fees are $20 to $30 each time a customer overdraws an account.