FDIC in the News

According to the New Jersey Star-Ledger, the FDIC “needs more money in case any large institutions fail next year. So it is requiring banks to prepay three years of insurance premiums by the end of this month.”

This is having an effect on smaller community banks, who “could restrict how much banks can offer on certificates of deposit and limit the dividends and share price appreciation of publicly traded institutions, according to community bankers in New Jersey.”

This while, according to Reuters, backing a deal for City National Corp to buy the banking operations of failed lender Imperial Capital Bank.

Late on Friday, City National said it bought about $3.4 billion in assets and about $2.2 billion of deposits from Imperial Capital, through a loss-sharing agreement with the FDIC.

City National would not need to raise capital in relation to the Imperial Capital deal, a company executive said on a conference call with analysts.

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