WASHINGTON, D.C. – U.S. Senator Tim Kaine, a member of the Senate Armed Services and Foreign Relations Committees, released the following statement on the nominations of General James Mattis to be Secretary of Defense and Rex Tillerson to be Secretary of State after participating in their confirmation hearings this week:
“I will support the nomination of General James Mattis to be Secretary of Defense. In his testimony before the Senate Armed Services Committee yesterday, he demonstrated a clear-eyed view of our current national security environment and a deep appreciation for the challenges facing U.S. servicemembers and their families. I believe he is well-prepar
In the video Federal Deposit Insurance Corporation (FDIC) Chair, Sheila Bair reassures depositors that their money is fully insured “as long as they are under the insurance limits.” She says all signs point to economic recovery but there will be more bank failures.
Do you know the health of your bank? No you don’t and that is to protect the banks that are on life-support from experiencing a run on the bank. You rememer the movie with Jimmy Stewart “It’s a Wonderful Live.”
The teetering banks are kept secret. You are in the dark until you go to the bank one day and see the sign “Bank Closed for Fall Cleaning.” (Roanokers know what the pun is about Fall Cleaning).
The FDIC is asking the banking industry to prepay their insurance premiums three years in advance to keep the insurance money pot adequate for the expected additional bank failures. Your money is backed by “the full faith and credit of the United States government … in short we cannot run out of money. We can also borrow from the U.S. Treasury,” said Bair. (We’ll just print some for you.)
EXAMPLE Oct. 23:First Dupage Bank, Westmont, Illinois, was closed today by the Illinois Department of Financial & Professional Regulation – Division of Banking, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Midwest Bank, Itasca, Illinois, to assume all of the deposits of First Dupage Bank.
The sole branch of First Dupage Bank will reopen on Saturday as a branch of First Midwest Bank. Depositors of First Dupage Bank will automatically become depositors of First Midwest Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage. Customers should continue to use their existing branches until First Midwest Bank can fully integrate the deposit records of First Dupage Bank.
This evening and over the weekend, depositors of First Dupage Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.
As of July 31, 2009, First Dupage Bank had total assets of $279 million and total deposits of approximately $254 million. First Midwest Bank will pay the FDIC a premium of 0.75 percent to assume all of the deposits of First Dupage Bank. In addition to assuming all of the deposits of the failed bank, First Midwest Bank agreed to purchase essentially all of the assets.
The FDIC and First Midwest Bank entered into a loss-share transaction on approximately $247 million of First Dupage Bank’s assets. First Midwest Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-sharing arrangement is projected to maximize returns on the assets covered by keeping them in the private sector. The agreement also is expected to minimize disruptions for loan customers.