Another Bank Bites the Dust

The latest victim of our ever increasing economic crisis is American Southern Bank.

According to government reports, we now have 26 banks that have failed this year. This total of 26 banks in FOUR months now exceeds the 25 banks that went under during 2008.

What the heck is going on?

Have we have been paying some much attention to the “big boys” of banking, Bank of America, Chase, Wells Fargo that we forgot that the regional or smaller banks need help as well?

I’m sure, if asked, our leaders would tell us that CRAP funds, oh my mistake, TARP funds are available for smaller banks as well. However, our banking regulators should be standing by each bank ready to assist them in any way possible to keep them afloat, instead of just worrying about the 19 largest banks by giving them a “stress test”, which by the way is just another way of having an excuse to give them money.

The recession (which is now in its 18^th month) has shaken our regional banks. Here’s the list of the banks that have failed so far this year;

National Bank of Commerce, Berkeley, IL

Bank of Clark County, Vancouver, WA

1st Centennial Bank, Redlands, CA

Magnet Bank, Salt Lake City, UT

Suburban Federal Savings Bank, Crofton, MD

Ocala National Bank, Ocala, FL

First Bank Financial Services, McDonough, GA

Alliance Bank, Culver City, CA

County Bank, Merced, CA

Sherman County Bank, Loup City, NE

Riverside Bank of the Gulf Coast, Cape Coral, FL

Corn Belt Bank and Trust Company, Pittsfield, IL

Pinnacle Bank of Oregon, Beaverton, OR

Silver Falls Bank, Silverton, OR

Heritage Community Bank, Glenwood, IL

Security Savings Bank, Henderson, NV

Freedom Bank of Georgia, Commerce, GA

First City Bank, Stockbridge, GA

Colorado National Bank, Colorado Springs, CO

Team Bank, National Association, Paola, KS

Omni National Bank, Atlanta, GA

Cape Fear Bank, Wilmington, NC

New Frontier Bank, Greeley, CO

American Sterling Bank, Sugar Creek, MO

Great Basin Bank of Nevada, Elko, NV

American Southern Bank, Kennesaw, GA

Heritage Bank, Farmington Hills, MI

First Bank of Beverly Hills, Calabasas, CA

First Bank of Idaho, Ketchum, ID

And now American Southern Bank.

26 banks in four months! These bank closings are approaching epidemic proportions!

Why are we bailing out the “Big” banks that, by the way, had a hand in causing this crisis and forgetting about the regional bank that deserves our help as well?

Frankly, this is beginning to look like a systematic approach to closing smaller regional banks and allowing the creation a small group of larger financial institutions.

Don’t believe me? Try Wells Fargo / Wachovia - Bank of America / Countrywide, Merrill Lynch, H&R Block Bank - Chase Bank / WMAU

Are you beginning to see a pattern?

Guess what - after the “stress test” we’re going to see more.

To see the full list of banks that have gone under please go to:

http://www.fdic.gov/bank/individual/failed/banklist.html

The Economic Plot Thickens

Today, Bank of America's CEO Kenneth Lewis said that he believed former Treasury Secretary Paulson and Fed Chairman Bernanke wanted him to "keep quiet" about the worsening terms of the bank's acquisition of Merrill Lynch comes to no surprize to me.

What we have here is just another example of the "let's take care of my friends" game that has been played and continues to be played by the good ole boys on Wall Street.

Lewis claims that Paulson and Bernanke warned him that failing to complete the Merrill Lynch takeover would "impose a big risk to the financial system". Has anyone explained why? Why Merrill Lynch and not Lehman Brothers? Surely both companies deserved to be saved, didn't they?

BofA had already received 25 billion from the TARP funds. In order to complete the deal for Merrill, BofA received 20 billion more.... before completing the deal for Merrill, didn't Kenneth Lewis read the financial statements of the company?

Or was he so worried about acquiring another "prized" bull, (remember Countrywide?), that he turned a blind eye!

Now he's pointing fingers! HA! He's acting like the kid who caught with his hand in the cookie jar, blaming everyone but himself for the debacle his company is involved in.

Mr. Lewis, I think it's time for you to take an Ethics class. You would probably not be visiting the Attorney General's office under these circumstances if you had remember the old adage "all that glitters is not gold".

Judge Stops Bank's Foreclosure Action

On March 6, 2009 a Florida Jurist, Judge Donna Berlin slammed the foreclosure door on Washington Mutual Bank in a mortgage foreclosure case.

Judge Berlin issued an order Canceling Foreclosure Sale and Enjoining Plaintiff from Applying for Sale Date. In this case, it seems that the homeowner was working with WAMU trying to get a loan modification for her mortgage. Unfortunately, WAMU was moving the foreclosure process forward through the court system.

Because the homeowner was talking with WAMU’s home retention dept. it appears that she didn’t take the appropriate actions in the Court to defend herself because of the ongoing loan modification negotiations. But why would she? She was convinced that “her bank” would work with her.

Just a month before on February 6, 2009, the Judge entered an order on February 6, 2009 setting aside a final judgment of foreclosure because of excusable neglect.

Despite that the foreclosure judgment was set aside, it appears that the company representing WAMU went ahead and asked to set a sale date and received a sale date of March 30, 2009. Bear in mind that there is no final judgment at this point.

Judge Berlin gets it! The Judge stopped WAMU from applying for another sale date until they receive a final judgment from the Court.

Over and over again we hear of stories where the bank has played “games” with homeowners who are either in the middle of a loan modification or in the middle of a “short sale” negotiation.

This recession is causing enough problems in this economy without the banks taking back houses every chance they get. When are the banks going to realize that most homeowners WANT to stay in their homes? WAMU boycott the recession with us by helping homeowners stay in their homes!

Homeowners let this story serve as an example of what you shouldn’t do! Do not assume that your mortgage company is working 100% on your behalf. Be mindful that the clock continues to tick on the foreclosure process. If you have a question on the foreclosure process in the state you live in, call your neighborhood housing agency, your local realtor or an Attorney.

And remember to help us Boycott the Recession by helping other homeowners stay in their homes.

Talk to you soon!

You can join us in boycotting this recession by going to www.BoycottTheRecession.org