Nice interactive map, via



Interactive Bank Failure Map
Philip van Doorn 02/17/09 – 11:20 AM EST

Category: Corporate Management, Credit, Legal, Regulation

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Interactive Bank Failure Map”

  1. Bruce N Tennessee says:

    I went to my bank over the lunch hour, and saw my banker there and we had a chat…it is amazing how much more bankers know about banking and the banking crisis than we non-bankers (!)…I am about to leave the salt mine, but after I get in my run I will post tonight on some of the things he told me…this bank is doing well, but our conversation was sobering…

    B in T

  2. aypay says:

    I, for one, would be very interested in reading that.

  3. Bruce in Tn says:

    Went to see my banker at lunch…very good man…masters from good school…very bright.

    We talked today about 30 minutes after I concluded some business..he and I are quite good friends.

    I will tell you the short story of our conversation.

    First, this is a modest sized community bank…no tarp…one of 8 five star banks in the state of Tennessee. Very well run.

    For the first time, they are seeing problems with repayment of loans among people who have never missed a payment, considered the best risk. I asked him how they evaluated mortgages, and his answer surprised me. He said it wasn’t so much how much the property was valued, but rather the consideration of the creditworthiness of the borrower was. Of course, they never loaned out 100 per cent of a mortgage, but the last couple of years loans were made to really only the most creditworthy patrons, certainly as far as large mortgages or business expansions were concerned.

    He tells me that banks are rated as to safety..(something I just noted in passing in places like, but that for the last year that there are many many calls weekly about transfering balances from less highly rated banks to his bank.

    He routinely tells people that if they are interested in CD’s that his bank is not the place to open one, that they aren’t competitive.

    The salt mine, all of us, have our corporate accounts through this bank. Normally, because of the balances, this bank pays us 3 per cent on checking. Until about 7 months ago, when the rate was cut to 2 per cent, with the caveat that further rate cuts might occur in 2009. He and I discussed this briefly, but he expects to cut our corporate accounts even further this year. And he certainly does not want to lose the salt mine to another bank.

    As part of what they in particular do, they had their exam by the national bank examiners last July. This report is given to the board of the bank, and the delay was such that the report was given to the Feb. 2009 board meeting. At the meeting the board, as do many of us, asked when they thought the downturn might end. The answer given in the meeting was 2nd quarter 2010 at the earliest.

    Many industries in my area that I had no inkling were going to close are on the books to close. We discussed one ceramics/tile concern that was taken over by a multinational from Spain two years ago that had business in most countries in Europe and South America, with a desire to have a foothold in the US…they had bought 3 other small concerns, mostly in the southwest, consolidated them here in East Tennessee in a 4 th concern of moderate size, and had added 200 jobs last year. My banker tells me that the entire concern is shutting down in 6 weeks with more than 600 jobs lost, all moving to their already existing Mexico plants.

    We talked of how lucky they have been and he told me of the extreme changes in valuation that he see CRE undergoing…that one CRE builder in Fla and S. Georgia approached him in 2006 with a plan that was accepted by a much larger bank…they were offered a portion of this…well, many banks bought a piece of this CRE pie, and the much larger bank kept a piece. My banker turned them down.

    Later, as the RE bubble burst, problems developed…and they were approached in December by a chagrined larger bank who offered to sell them the portion of the CRE that they had kept. Want to guess what the real value of the 800 million value in 2006? Yep, the entire value–of the initial CRE offering–was now <60 million….he turned them down once again for their discounted remaining slice…

    I know about as much about banking as he knows about salt mining..but these I some of the things I remember from our meeting…

    Good luck..

    Bruce in Tennessee

  4. usphoenix says:

    Nice chart. Thanks. Spells it out.

    @Bruce n Tn: Thanks for sharing. Most don’t realize how much foreign capital has purchased “American” businesses. I was surprised it was happening in TN. But the big boys play follow the leader after certain COs figured out car plants made sense in the South and not the North. Will they be the first or last to go? Probably last.

    What? No NY bank failures? It’s time.

    The last vestiges of Americana include the local banks like this one. Spelled “COMMUNITY”. “It’s a Great Life” Somehow I don’t see depositors lining up to donate money to Citi.