Bankrupt global financial institutions

Latest Major Bankruptcy News

2007 06 13 IndyMac Sued Over Investor Claims It Hid Loan Losses
2008 06 30 IndyMac to Trim Operations, Not Shut Down, Perry Says
2008 07 01 IndyMac Chief Financial Officer A. Scott Keys Resigns
2008 07 07 IndyMac Cuts Half its Staff as Mortgage Losses Mount
2008 07 08 IndyMac Falls After Regulators Say It Isn’t `Well Capitalized’
2008 07 10 Roskilde Bank Receives Liquidity From Danish Central Bank
2008 07 11 Danske Bank ikke interesseret i Roskilde Bank
2008 07 11 Danish Central Bank Bails Out Roskilde Bank
2008 07 11 Roskilde Drops in Denmark After Central Bank Bailout
2008 07 11 IndyMac Bancorp Is Seized By Federal Regulators
2008 07 11 IndyMac Seized by U.S. Regulators Amid Cash Crunch
2008 07 25 My Experience at Indy Mac: Fraud, Corruption, Criminality
2008 07 26 Sinking IndyMac sought funding lifelines
2008 08 15 McCain’s Son Sat on Troubled Bank’s Board
2008 08 20 FDIC Releases Details on IndyMac Loan Mods; Questions Remain
2008 08 20 California mulls probing senator over IndyMac crash
2008 09 05 Regulators Shutter Silver State Bank
2008 09 19 Ameribank of West Virginia closed by regulators
2008 09 25 WaMu Seized by U.S., Assets Sold to JPMorgan in Record Failure
2008 09 25 WaMu’s 42-Story Seattle Headquarters Acquired in JPMorgan Deal

UPDATE: The latest bankruptcy is Washington Mutual. See my story here.

Intro

As many readers know, I chronicle the writedowns of our venerable global financial institutions in my credit crisis timeline. It is perhaps the definitive guide to getting a handle on writedowns on the web today.

However, despite the Armageddon scenario of $1.6 trillion in eventual writedowns painted by Bridgewater Associates in their leaked study, I do not anticipate many more writedowns as a result of SIVs or RMBSs or CDOs based on subprime mortgages. Perhaps we will see another $30-50 billion worth before year end 2008 and another $100-150 billion more before all is said and done. But this is paltry compared to the $450 billion already written off and the $1.6 trillion anticipated by Bridgewater. Subprime is largely contained!

That said, I do expect to begin to see massive write-offs going forward in a number of other areas. And it is here that I expect to see major financial stress. As the real economy moves centre stage, the question should become:

Where else have our previously cautious bankers made cheap loans to dubious debtors?

The most obvious areas are the following:

• Alt-A Mortgages
• Payment Option Mortgages
• Negative Amortization Mortgages
• Leveraged Loans
• High Yield Bonds
• Credit Card Receivables and Asset Backed Securities
• Auto Loan Receivables and Securitized auto Loan Bonds
• Commercial Real Estate Loans
• Construction Loans

As the real economy turns down and recession becomes a reality in the US, the UK, Ireland, Denmark, Spain, South Africa, Germany, Japan, Canada and many others already showing significant weaknesses, one should expect this generalized weakness to uncover many more bad debts than is currently being anticipated.

This is one reason for the $1.6 trillion figure by Bridgewater. While I may differ from Bridgewater in that I would put my figure at $900 billion, the result will be the same: major financial bankruptcies

So, as with the credit writedowns, I will begin to chronicle them here in this blog. I will be looking only to add banks that collapse because of the credit crunch and housing bubble.

For example, NetBank went bust in September 2007, but it seems unrelated to the housing bust so I don’t have it on the list. Another example is tiny Hume Bank, which was too small to consider on the list.

Here is the present list.

#1 Northern Rock
#2 Bear Stearns
#3 ANB Financial
#4 First Integrity Bank
#5 Roskilde Bank
#6 IndyMac
#7 First Heritage Bank
#8 First National Bank of Nevada
#9 IKB (basically insolvent after gov’t intervention)
#10 Silver State
#11 Fannie Mae
#12 Freddie Mac
#13 Lehman Brothers
#14 AIG
#15 Washington Mutual

As the bankruptcies begin in earnest, expect to find at this blog entry a host of links and other information to help you get up to speed on the individual cases. As with the credit crisis time-line I will be updating around the clock and back-filling where appropriate.

To see all the failed U.S. banks taken over by the FDIC, including ones that don’t meet my criteria like (Columbian Bank and Trust of Kansas), see U.S. FDIC List of Failed Banks. Here is the present list below.

Stay tuned: the bankruptcies certainly are coming. One thing to note is that uninsured deposits will NOT necessarily be reimbursed. Be very cautious with having more than $100,000 at a dodgy bank. Read the FDIC rules for deposit insurance here. If you are concerned about your large bank going bust, see the list of writedowns here.

As for a list of all American institutions, large and small, the Bank Implode-o-Meter has the best information on the web for that.

The Bank Implode-O-Meter

Bankrupt Global Financial Institutions

1. Northern Rock United Kingdom

2007 09 14 Northern Rock Gets Emergency Bank of England
2007 09 15 Credit Crisis Hits Lender In Britain
2007 09 23 Ten days that shook the City
2007 10 10 Northern Rock deposits to be guaranteed by British government
2008 02 17 Northern Rock Nationalized as U.K. Rejects Virgin Bid
2008 05 13 Rock’s mortgage arrears increase
2008 05 21 Northern Rock billions ‘at risk in a downturn’

2. Bear Stearns, New York

Timeline of JP Morgan Chase’s acquisition of Bear Stearns
2007 06 12 Bear Stearns’ Subprime Bath
2007 06 23 Bear Stearns Fund Collapse Sends Shock Through CDOs
2007 06 23 $3.2 Billion Move By Bear Stearns To Rescue Fund
2007 06 26 Bear Stearns provides update on BSAM structured credit strategies funds
2007 07 18 Bear Stearns Says Battered Hedge Funds Are Worth Little
2007 08 02 Bear Stearns funds enter bankruptcy
2007 08 07 Bear Stearns Caymans Filing May Hurt Funds’ Creditors
2007 08 09 Bear Stearns sued over hedge fund collapse
2007 11 15 Bear Stearns Credit Rating Cut by S&P on Writedowns
2008 11 21 Bear Stearns’s Former President to Keep $23 Million
2007 11 28 Bear Stearns to Cut 650 Jobs Amid Mortgage Losses
2007 12 19 Bear Stearns Hedge Fund Manager Departs Amid Probes
2007 12 20 Bear Stearns Posts First Loss on Mortgage Writedowns
2007 12 20 Barclays sues Bear Stearns over hedge fund collapses
2008 01 09 Bear Stearns boss Cayne resigns
2008 03 14 JPMorgan and Fed Move to Bail Out Bear Stearns
2008 03 14 Bear Stearns Has Credit Ratings Slashed After Bailout
2008 03 15 Run on Big Wall St. Bank Spurs U.S.-Backed Rescue
2008 03 25 Seeking Fast Deal, JPMorgan Quintuples Bear Stearns Bid
2008 04 07 Bear Stearns Sued for $1 Billion by Fund Liquidators
2008 05 29 Bear Stearns Holders Approve Purchase, Ending Era

3. ANB Financial, Arkansas
2008 02 20 ANB Financial Comes Under Tighter Federal Scrutiny
2008 03 10 ANB Financial Closes Little Rock Mortgage Operation
2008 05 09 FDIC Approves the Assumption of the Insured Deposits of ANB Financial, National Association, Bentonville, Arkansas
2008 05 09 Federal regulators close Arkansas bank ANB Financial
2008 05 12 Behind the Rapid Fall of ANB Financial

4. First Integrity Bank, Minnesota
2008 05 30 FDIC Approves the Assumption of All the Deposits of First Integrity Bank, National Association, Staples, Minnesota
2008 05 30 OCC Closes First Integrity Bank, N.A. and Appoints FDIC Receiver
2008 05 30 First Integrity Bank NA of Staples, MN fails, fourth in 2008
2008 06 02 First Integrity bank shut down by regulators

5. Roskilde Bank, Denmark
2008 07 10 Roskilde Bank Receives Liquidity From Danish Central Bank
2008 07 11 Danske Bank ikke interesseret i Roskilde Bank
2008 07 11 Danish Central Bank Bails Out Roskilde Bank
2008 07 11 Roskilde Drops in Denmark After Central Bank Bailout
2008 08 24 Danish Central Bank, Grouping Acquire Roskilde Bank

6. IndyMac, California
2007 07 31 IndyMac’s Net Falls 57 Percent as Defaults Surge
2007 11 06 IndyMac Reports $202.7 Million Loss on Late Payments
2008 02 12 IndyMac Posts Record Loss, Calls Reserves Adequate
2008 04 09 IndyMac Sells First Non-Agency Bonds in Two Months
2008 05 12 IndyMac Reports Loss, Doesn’t See Profit in 2008
2007 06 13 IndyMac Sued Over Investor Claims It Hid Loan Losses
2008 06 30 IndyMac to Trim Operations, Not Shut Down, Perry Says
2008 07 01 IndyMac Chief Financial Officer A. Scott Keys Resigns
2008 07 07 IndyMac Cuts Half its Staff as Mortgage Losses Mount
2008 07 08 IndyMac Falls After Regulators Say It Isn’t `Well Capitalized’
2008 07 11 IndyMac Bancorp Is Seized By Federal Regulators
2008 07 11 IndyMac Seized by U.S. Regulators Amid Cash Crunch
2008 07 26 Sinking IndyMac sought funding lifelines
2008 08 20 FDIC Releases Details on IndyMac Loan Mods; Questions Remain
2008 08 20 California mulls probing senator over IndyMac crash

7. First Heritage Bank, California
2008 07 26 Two More Banks Fail
2008 07 26 FDIC steps in at two more failed banks, Credit Writedowns
2008 07 26 FDIC takes over 2 more banks, closing 28 branches, AP
2008 07 26 Two More Banks Fail, WSJ
2008 07 26 Mutual of Omaha Bank to Acquire Deposits of Failed First National Bank,Market Watch
2008 07 26 Regulators Close Two More National Banks, Washington Post
2008 07 26 Market Watch: Two more banks fail, Market Watch
2008 07 26 U.S. Regulators Seize Two More Banks, NY Times
2008 07 26 FDIC closes First Heritage Bank, 1st National Bank of Nevada, LA Times

8. First National Bank of Nevada
2008 07 26 Two More Banks Fail
2008 07 26 FDIC steps in at two more failed banks, Credit Writedowns
2008 07 26 FDIC takes over 2 more banks, closing 28 branches, AP
2008 07 26 Two More Banks Fail, WSJ
2008 07 26 Mutual of Omaha Bank to Acquire Deposits of Failed First National Bank,Market Watch
2008 07 26 Regulators Close Two More National Banks, Washington Post
2008 07 26 Market Watch: Two more banks fail, Market Watch
2008 07 26 U.S. Regulators Seize Two More Banks, NY Times
2008 07 26 FDIC closes First Heritage Bank, 1st National Bank of Nevada, LA Times

9. IKB
2007 07 30 IKB Cuts Profit Forecast Amid Rout in U.S. Mortgages
2007 09 03 Sub-prime crisis to cost IKB $1bn
2007 11 27 KfW Almost Doubles Provisions on Possible IKB Losses
2008 02 17 IKB Will Ask Shareholders to Approve EU1.5 Billion Stock Sale
2008 02 18 IKB Bailout Cost Totals 8.5 Billion Euros, Handelsblatt Reports
2007 03 20 IKB Seeks Fourth Bailout After Subprime Loss Widens
2008 04 07 Head of German bank KfW resigns amid problems at IKB
2008 04 29 IKB Has $1.5 Billion First-Half Loss on Writedowns
2008 05 27 IKB Posts Nine-Month Loss; Sale Process as Planned
2008 07 03 IKB Reports 24 Million Euro Full-Year After-Tax Loss
2008 07 16 IKB’s Failed Rhinebridge SIV to Sell Assets Under Goldman Plan
2008 07 22 IKB in new sub-prime write downs
2008 08 21 Lone Star Funds to take over IKB

10. Silver State Bank
2008 08 15 McCain’s Son Sat on Troubled Bank’s Board
2008 09 05 Regulators Shutter Silver State Bank
2008 09 05 Silver State of Nevada Is 11th Bank Failure This Year

11. and 12. Fannie Mae and Freddie Mac
2007 11 20 Freddie Mac in $6bn share issue
2007 11 21 Freddie Mac, a Buffer Against Crisis, Posts $2 Billion Loss
2007 12 04 U.S. mortgage giant in share issue
2008 02 29 Freddie Mac Reports $2.5 Billion Loss: Panel to Assess Management
2008 05 06 Fannie Mae loses $2.2-billion
2008 05 06 Fannie Mae to raise $6bn new capital
2008 07 07 Freddie Mac, Fannie Mae Plunge on Capital Concerns
2008 07 09 Freddie Mac Dips Below $10 a Share for First Time Since 1992
2008 07 09 Fannie Mae Pays Record Spreads on Two-Year Note Sale
2008 07 10 U.S. Mulls Future of Fannie, Freddie
2008 07 15 Scramble Led to Rescue Plan on Mortgages
2008 08 04 Fannie’s Mudd Soothed Asian Investors as Bonds Rose
2008 08 06 Freddie Mac Posts Fourth Straight Loss, Cuts Dividend
2008 08 08 Fannie Mae Posts Fourth Straight Loss, Cuts Dividend
2008 08 15 Fannie, Freddie debt faces confidence crisis overseas
2008 08 20 Fannie Mae and Freddie Mac shares fall on fears of size of potential losses
2008 08 20 Fed’s Lacker Clashes With Paulson on Fannie-Freddie Strategy
2008 08 29 Fannie Mae and Freddie Mac: A Damage Report
2008 09 07 Paulson Engineers U.S. Takeover of Fannie, Freddie
2008 09 07 Paulson Statement on U.S. Action on Fannie, Freddie: Text
2008 09 07 Statement by Fed Chairman Bernanke on Fannie, Freddie Plans
2008 09 07 Treasury Extends Secured Credit Line to Federal Home Loan Banks
2008 09 07 Regulators to Help Banks With Fannie, Freddie Shares
2008 09 07 Fannie, Freddie Capital Concerns Prompt Paulson Plan
2008 09 07 Few Stand to Gain on This Bailout, and Many Lose
2008 09 07 Fitch Affirms Fannie & Freddie ‘AAA’ IDR; Lowers Pfd Stock; Sub Debt
2008 09 07 Pimco’s Bill Gross on the Fan/Fred rescue: “We like it”
2008 09 07 Futures soar after U.S. takes over GSEs
2008 09 07 S&P, Fitch slash Fannie, Freddie preferreds to junk
2008 09 08 Fannie, Freddie Credit-Default Swaps May Be Settled

13. Lehman Brothers
2007 12 13 Lehman earnings fall amid $830 million writedown
2007 01 17 Lehman to cut 1,300 mortgage jobs
2008 03 18 U.S. bank profits more than halved
2008 04 29 Lehman Plans EU1.1 Billion CLO to Cut Buyout Loans
2008 06 02 Morgan Stanley, Merrill, Lehman Ratings Cut by S&P
2008 06 03 Lehman May Need to Raise Capital as Analysts See Loss
2008 06 03 Living without the Bear buffer
2008 06 03 Losses Push Lehman To Weigh Raising New Capital
2008 06 03 Lehman Denies Fed Borrowing, Says Cash Holdings Rose
2008 06 09 Lehman Brothers to post $3 bln loss; sets $6 bln stock sale
2008 06 09 Lehman to post $2.8 billion quarterly loss
2008 06 09 Lehman Cuts $130 Billion of Assets to End Bear Stigma
2008 08 20 Possible Lehman asset management sale portends pain – Reuters
2008 08 20 Lehman’s secret talks to sell 50% stake stall
2008 08 21 Fed Acted on Lehman Rumor
2008 09 09 Counterparty credit risks climb on Lehman, WaMu
2008 09 09 KDB’s Attempt to Invest In Lehman Appears Over
2008 09 10 Lehman Sees $3.9 Billion Loss and Plans to Shed Assets
2008 09 10 Lehman to Sell Neuberger Stake, Spin Off Real Estate
2008 09 15 Lehman Files Biggest Bankruptcy After Suitors Balk
2008 09 22 Nomura buys Lehman Brothers Asia units
2008 09 23 Nomura Acquires 2 More Lehman Units

14. AIG
2008 05 09 AIG off 9% on record loss, plan to raise $12.5 billion
2008 05 19 AIG to raise roughly $20 billion in capital
2008 05 23 Moody’s Cuts AIG Rating
2008 06 06 SEC reportedly probing AIG’s swaps
2006 06 16 AIG Ousts Sullivan, Taps Willumstad As Losses Mount
2008 06 27 AIG Poised to Absorb $5 Billion Losses From Securities-Lending
2008 08 06 A.I.G. Posts a Large Loss as Housing Troubles Persist
2008 09 15 AIG’s Ratings Cut by S&P, Moody’s, Threatening Fund Raising
2008 09 16 Fed to lend $85 billion to AIG, take 80 percent stake
2008 09 24 AIG slumps after signing up for $85 billion Fed loan
2008 09 26 Greenberg Sells 40 Million AIG Shares, Cutting Stake in Insurer

15. Washington Mutual
2006 02 16 Washington Mutual to Cut 2,500 Jobs
2007 09 12 Washington Mutual, First Horizon Cut Jobs From Mortgage Units
2007 12 11 Washington Mutual Cutting Dividend and Jobs
2008 01 18 Write-Down Contributes to Profit Fall at Trust Bank
2008 04 08 Washington Mutual Raising $7 Billion
2008 04 09 WaMu’s Hedge: CEO Called In Dimon & Co.
2008 04 15 A Loss and a Shake-up at Washington Mutual
2008 06 02 Washington Mutual’s Killinger Steps Down as Chairman
2008 06 09 Washington Mutual Falls on $22 Billion Loss Estimate
2008 06 19 WaMu cuts 1,200 more jobs as part of cost reductions
2008 07 14 WaMu Leads Steepest-Ever Decline in Bank Stock Index
2008 07 15 Washington Mutual Drop Wipes Out Most of TPG Holding
2008 07 22 WaMu Has $3.3 Billion Quarterly Loss on Delinquencies
2008 07 24 WaMu Slumps as Gimme Credit Cites Liquidity Concern
2008 09 08 WaMu’s New Chief Prepares To Dive In Amid Skepticism
2008 09 09 Counterparty credit risks climb on Lehman, WaMu
2008 09 16 WaMu Falls as S&P Cuts Lender’s Credit Rating to Junk
2008 09 24 WaMu Cut Again by S&P as Pressure Rises to Reach Deal
2008 09 24 Fitch: Partial Sale Increasingly Likely for WaMu; IDR Downgraded to ‘B-‘
2008 09 25 WaMu Seized by U.S., Assets Sold to JPMorgan in Record Failure
2008 09 25 WaMu’s 42-Story Seattle Headquarters Acquired in JPMorgan Deal

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