BANK....BUST....FRIDAY !!!! ....... Big Apple edition

[marmar]

Bank Closing Information - March 12, 2010

Park Avenue Bank, New York, NY

March 11, 2010
LibertyPointe Bank, New York, NY


www.fdic.gov

[Renew Deal]

1. If you can make it in NY, you can make it anywhere.

I guess these two can't make it.

[AllentownJake]

2. Whoa

$379.8 million loss on 500 million assets for Park Avenue?
$181.5 million loss on 200 million assets for Liberty?

:wtf: These are two of the worst ones I've seen yet.

[FarCenter]

3. Estimated losses in the Press Releases are not that much

The Park Avenue Bank, New York, New York, -- The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $50.7 million.

LibertyPointe Bank, New York, New York, -- The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24.8 million.

[AllentownJake]

4. They have agreed to cover losses upward of that

If I agree to taking something off of your hands and you agree to protect that something from losses up to a certain amount, I have reason to believe, that is going to be what is lost.

[FarCenter]

5. Valley has acquired the dodgy assets -- They and FDIC share the losses

http://www.fdic.gov/news/news/press/2010/pr10049.html

As of December 31, 2009, LibertyPointe Bank had approximately $209.7 million in total assets and $209.5 million in total deposits. Valley National Bank will pay the FDIC a premium of 0.15 percent to assume all of the deposits of LibertyPointe Bank. In addition to assuming all of the deposits, Valley National Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC and Valley National Bank entered into a loss-share transaction on $181.5 million of LibertyPointe Bank's assets. Valley National Bank will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $24.8 million. Valley National Bank's acquisition of all the deposits was the "least costly" resolution for the FDIC's DIF compared to all alternatives.

[AllentownJake]

6. Their estimates are meaningless

They have agreed to share in 80%-95% of the losses on a bunch of assets for 10 years.