Regulators closed five banks over the weekend, pushing the 2009 total to 69 failures. The Federal Deposit Insurance Corp. (FDIC) estimates that the closings will cost a combined $911.7m. The Oklahoma State Banking Department closed the First State Bank of Altus, which cost the FDIC $25.2m. Herring Bank of Amarillo, Texas assumes the $98.2m in deposits and agreed to purchase $64.4m of the bank’s $103.4m in assets. The Florida Office of Financial Regulation shut down Integrity Bank, costing the FDIC $46m. Stonegate Bank acquired its $102m in deposits and purchased $52m of the $119m in assets. The Office of Thrift Supervision closed Peoples Community Bank in Ohio, costing the FDIC an estimated $129.5m. In addition to assuming all $598.2m in deposits, First Financial Bank will purchase “essentially all of the assets.” The New Jersey Department of Banking and Insurance closed First Bank Americano, costing the FDIC $15m. Crown Bank agreed to assume all of the failed bank’s assets and $157m in deposits. The Illinois Department of Financial Professional Regulation shut down Mutual Bank. United Central Bank will assume $1.6bn in deposits and purchase all assets. The closed banks bring the total losses of the FDIC to $15.13bn for 2009, compared to $17.6bn in all of 2008, according to CNNMoney. According to a Barclays Capital research report released over the weekend, spreads tightened in the commercial mortgage backed securities (CMBS) market, led by a flurry of activity in the CMB Index. But the report remains cautious in CMBS in anticipation of a rise in delinquencies. In May, distressed sales made up 38% of sales, decreasing from 52% in January, according to securitization research from Barclays. “A tide of new foreclosure sales as moratoria subside points to renewed weakness in the fall, preceding a 2010 recovery,” the report reads. On ABC’s “This Week,” Treasury secretary Timothy Geithner cited that the economy could see a decline in unemployment in the near-future:
"What you're going to see first is growth turn positive. And then you're going to see the pace of job losses slow materially for the - they have already slowed significantly. They're going to slow materially further. But again, most private forecasters - and let's use their judgment - suggest you're going to see unemployment start to come down maybe beginning in the second half of next year."
Hudson & Marshall will auction nearly 200 bank-owned homes throughout Florida beginning August 4. Miami and Tampa Bay lead the way with 50 homes listed each. Interested buyers can register the day of the auction but will be required to make a cash or certified check deposit of $3,000 for each property won. The auction ends August 9. Write to Jon Prior.