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The Federal Deposit Insurance Corporation (FDIC) is one of two agencies that supply deposit insurance to depositors in American depository institutions, the other being the National Credit Union Administration, which regulates and insures credit unions. The FDIC is a United States government corporation supplying deposit insurance to depositors in American commercial banks and savings banks. The FDIC was created by the 1933 Banking Act, enacted during the Great Depression to restore trust in the American banking system. More than one-third of banks failed in the years before the FDIC's creation, and bank runs were common. The insurance limit was initially US$2,500 per ownership category, and this was increased several times over the years. Since the passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act in 2011, the FDIC insures deposits in member banks up to US$250,000 per ownership category. FDIC insurance is backed by the full faith and credit of the government of the United States of America, and since its start in 1933 no depositor has ever lost a penny of FDIC-insured funds.
Washington Mutual, Inc—abbreviated to WaMu—was a savings bank holding company and the former owner of WaMu Bank, which was the United States' largest savings and loan association until its collapse in 2008.
A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings deposits and making mortgage and other loans. The terms "S&L" or "thrift" are mainly used in the United States; similar institutions in the United Kingdom, Ireland and some Commonwealth countries include building societies and trustee savings banks. They are often mutually held, meaning that the depositors and borrowers are members with voting rights, and have the ability to direct the financial and managerial goals of the organization like the members of a credit union or the policyholders of a mutual insurance company. While it is possible for an S&L to be a joint-stock company, and even publicly traded, in such instances it is no longer truly a mutual association, and depositors and borrowers no longer have membership rights and managerial control. By law, thrifts can have no more than 20 percent of their lending in commercial loans—their focus on mortgage and consumer loans makes them particularly vulnerable to housing downturns such as the deep one the U.S. experienced in 2007.
The savings and loan crisis of the 1980s and 1990s was the failure of 1,043 out of the 3,234 savings and loan associations (S&Ls) in the United States from 1986 to 1995. An S&L or "thrift" is a financial institution that accepts savings deposits and makes mortgage, car and other personal loans to individual members.
The Office of Thrift Supervision (OTS) was a United States federal agency under the Department of the Treasury that chartered, supervised, and regulated all federally chartered and state-chartered savings banks and savings and loans associations. It was created in 1989 as a renamed version of the Federal Home Loan Bank Board, another federal agency. Like other U.S. federal bank regulators, it was paid by the banks it regulated. The OTS was initially seen as an aggressive regulator, but was later lax. Declining revenues and staff led the OTS to market itself to companies as a lax regulator in order to get revenue.
Great Western Bank was a large retail bank that operated primarily in the Western United States. Great Western's headquarters were in Chatsworth, California. At one time, Great Western was one of the largest savings and loan in the nation, second only to Home Savings of America. The bank was acquired by Washington Mutual in 1997 for $6.8 billion.
H.F. Ahmanson & Co. was a California holding company named after millionaire Howard F. Ahmanson Sr. It was best known as the parent of Home Savings of America, once one of the largest savings and loan associations in the United States.
Chevy Chase Bank, F.S.B. was the largest locally based banking company in the Washington Metropolitan Area. It was acquired by Capital One in February 2009, and rebranded as Capital One Bank in September 2010. Despite its name, Chevy Chase Bank was a federally chartered thrift regulated by the Office of Thrift Supervision, rather than a bank.
The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), is a United States federal law enacted in the wake of the savings and loan crisis of the 1980s.
IndyMac, a contraction of Independent National Mortgage Corporation, was an American bank based in California that failed in 2008 and was seized by the United States Federal Deposit Insurance Corporation (FDIC).
The William Donald Schaefer Building is the fourth-tallest building in the City of Baltimore, Maryland, located at 6 St. Paul Street. Originally completed by Merritt Savings and Loan in 1986 and later re-opened under state management in 1992, the building rises 37 floors and 493 feet (150 m) in height. Office space constitutes the lower 29 floors, housing more than 1,100 employees in 14 state agencies. The nine upper floors are unoccupied, containing a maintenance area, cement staircase, a ladder to the rooftop deck and then an eight-floor spiral staircase leading to the top of the spire and the flagpole.
Old Stone Bank was a popular Rhode Island banking institution that was founded in Providence in 1819 as a mutual savings bank that was called Providence Institution for Savings.
Tafflin v. Levitt, 493 U.S. 455 (1990), was a United States Supreme Court case in which the Court held that state courts have concurrent jurisdiction to decide civil claims brought under the Racketeer Influenced and Corrupt Organizations Act (RICO).
Midwest Federal Savings and Loan was an American bank headquartered in Minneapolis, Minnesota. Starting in the mid-1960s, its headquarters were located at 801 Nicollet Mall in what is now called McGladrey Plaza. Midwest Federal was in business for ninety-nine years until its failure in 1989. Its collapse was due mostly to bad real estate loans. On April 22, 1991, the St. Paul Pioneer Press called the bank's failure the "largest financial disaster in Minnesota history" and was part of the savings and loan crisis of the 1980s. Midwest Federal had assets of US$3.5 billion, was liquidated by the government at a cost of US$1 billion to taxpayers. Midwest was US$1 billion in debt when it was seized by regulators in February 1989.
Guaranty Bank was a major bank based in Austin, which collapsed in 2009. It was formed in 1988 as part of Temple-Inland and in 2007 became a standalone company. At the time of its collapse, Guaranty was the second largest bank in Texas, with 162 branches across Texas and California, and had $13 billion in assets and held $12 billion in deposits. Major shareholders included billionaire investor Carl Icahn and hotel tycoon Robert Rowling, who jointly invested $600 million in the bank in 2008.
Bank United Corporation, headquartered in Houston, Texas, was a broad-based financial services provider and the largest publicly traded depository institution headquartered in Texas before its merger with Washington Mutual in 2001. Bank United Corp. conducted its business through its wholly owned subsidiary, Bank United, a federally chartered savings bank. The company operated a 155-branch community banking network in Texas, including 77 in the Dallas/Fort Worth Metroplex, 66 in the greater Houston area, five in Midland, four in Austin, and three in San Antonio; operated 19 SBA lending offices in 14 states; was a national middle market commercial bank with 23 regional offices in 16 states; originated mortgage loans through 11 wholesale offices in 10 states; operated a national mortgage servicing business serving approximately 324,000 customers, and managed an investment portfolio. As of June 30, 2000, Bank United Corp. had assets of $18.2 billion, deposits of $8.8 billion, and stockholder's equity of $823 million.
Crestar Bank was a bank headquartered in Richmond, Virginia with branches in Virginia and Maryland. It was the leading subsidiary of Crestar Financial Corporation. In 1998, it was acquired by SunTrust Banks. At that time, it was the largest independent bank in Virginia.
Home State Savings Bank was a Cincinnati, Ohio based savings and loan. Its failure in March 1985 led to a bank holiday for 70 other savings institutions that were insured by the Ohio Deposit Guarantee Fund, a private organization.
American Savings and Loan Association was an American savings and loan based in Stockton, California. It was the largest thrift failure and the federal government's costliest resolution during the savings and loan crisis at an estimated cost of $5.4 billion.
Greater Atlantic Bank (GAB) was an American community bank. The bank was founded in May 1887 and was closed in December 2009. It was the first bank failure of the Great Recession and was the first bank failure in Virginia since 1993.
References
- 1 2 Wolfson, Martin H. (2004). Financial Crises: Understanding the Postwar U.S. Experience. Armonk, New York: M.E. Sharpe. pp. 106–07. ISBN 0-87332-750-0.
- 1 2 Markham, Jerry W. (2002). A Financial History of the United States. 3. Armonk, New York: M.E. Sharpe. pp. 169–71. ISBN 0-7656-0730-1.
- 1 2 Brandenburg v. Seidel,859F.2d1179, 1181(4th Cir.1988).
- ↑ Tony Kornheiser, Jeffrey Levitt Stole $15 Million, Washington Post (October 26, 1986). Retrieved on May 7, 2007.
- ↑ Tom Stuckey, Levitt enters plea of guilty, Associated Press , published in the Reading Eagle (May 27, 1986). Retrieved on November 20, 2013.
- ↑ Craig S. Ey, et al., Jeff, Where art thou?, Baltimore Business Journal (November 3, 1997). Retrieved on December 23, 2012.
- ↑ Michael James, Jeffrey Levitt's new life Survivor: A decade after losing his wealth, his wife and his freedom, the villain of the Maryland S&L scandal is breaking his angry silence, Baltimore Sun (March 16, 1997). Retrieved on December 23, 2012.