Seeking Alpha

A costly failure No. 128 for banks as 66-branch AmTrust Bank of Cleveland, the 120-year-old...

A costly failure No. 128 for banks as 66-branch AmTrust Bank of Cleveland, the 120-year-old former Ohio Savings Bank, is seized at a cost to the Deposit Insurance Fund of an estimated $2B. AmTrust's parent company filed for bankruptcy earlier this week.
Comments (13)
  • Tom Au, CFA
    , contributor
    Comments (6779) | Send Message
     
    2009 will be remembered as the year when "the banks started failing" (in large numbers).
    4 Dec 2009, 07:09 PM Reply Like
  • herbert hoover
    , contributor
    Comments (2005) | Send Message
     
    Look at the stock chart for the acquiring bank, NYB, and then tellme that there was no insider trading going on. The US is a giant corporate fascist state
    4 Dec 2009, 07:26 PM Reply Like
  • battman
    , contributor
    Comments (373) | Send Message
     
    At what point do we wish the world finally ends? Can we move on from the "everyone else is stupider than me" mentality and just work on fixing the problem.
    Yes banks are failing, it's happened before and it will happen again.
    Let's focus on the fix please.
    4 Dec 2009, 07:48 PM Reply Like
  • damienhaas
    , contributor
    Comments (448) | Send Message
     
    The problem is that they are not fixing them. They saved the big banks and wall streets but let the smaller banks fall. These small banks are the one that support the small businesses.

     

    On Dec 04 07:48 PM battman wrote:

     

    > At what point do we wish the world finally ends? Can we move on
    > from the "everyone else is stupider than me" mentality and just work
    > on fixing the problem.
    > Yes banks are failing, it's happened before and it will happen again.
    >
    > Let's focus on the fix please.
    4 Dec 2009, 08:22 PM Reply Like
  • mr.big
    , contributor
    Comments (3) | Send Message
     
    Interesting how the failure of all these banks are reported on Friday.
    4 Dec 2009, 09:16 PM Reply Like
  • Thomas Smicklas
    , contributor
    Comments (747) | Send Message
     
    No suprise. This bank has had inept, some may venture corrupt, leadership for years. And serving northern Ohio to boot, a bastion of dying cities.

     

    Ultimately, a toxic concoction.
    4 Dec 2009, 09:33 PM Reply Like
  • Papaswamp
    , contributor
    Comments (2198) | Send Message
     
    Guess the FDIC slides a little deeper into the red.
    4 Dec 2009, 09:59 PM Reply Like
  • Windsun33
    , contributor
    Comments (4277) | Send Message
     
    Actually, not even close. 1988-1990 saw something like 2000 failures. www.calculatedriskblog...
    The difference now is that often the size of the banks is larger - sometimes much larger.

     

    On Dec 04 07:09 PM Graham and Dodd Investor wrote:

     

    > 2009 will be remembered as the year when "the banks started failing"
    > (in large numbers).
    4 Dec 2009, 10:08 PM Reply Like
  • Rhianni32
    , contributor
    Comments (2055) | Send Message
     
    They always do it on friday after the banks have closed.
    The government goes in and spends all weekend getting things in order so that another bank can run it on Monday as normal

     

    On Dec 04 09:16 PM mr.big wrote:

     

    > Interesting how the failure of all these banks are reported on Friday.
    4 Dec 2009, 10:17 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Can you feel it?...the recovery? Isn't it great?

     

    The divergence between reality and all the bullish rhetoric is wider than the Grand Canyon.
    4 Dec 2009, 11:28 PM Reply Like
  • ebworthen
    , contributor
    Comments (2811) | Send Message
     
    Everything is just great...those failing banks are only going to cost the taxpayer another 800 billion. What's that compared to 2+ trillion in taxpayer funded liquidity to the big banks and unfunded SS, Medicare, Pension, and other FED program obligations?

     

    C'mon now folks, "happy days are here again!"

     

    Pop that champagne cork, we need to party like it's 1929!!!
    4 Dec 2009, 11:52 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    and gold went down because of what????????
    smoke and mirrors..but now the smoke machine is starting to fail..soon everyone will know what a scam we are....
    5 Dec 2009, 07:19 AM Reply Like
  • battman
    , contributor
    Comments (373) | Send Message
     
    Fixing the system is by letting the failures fail. The problem is they saved too many of the "too big to fail" banks. Those banks are back to the huge bonuses and market manipulation they came to know and love.
    The reason why this country works is because you're rewarded for doing well, and punished for not doing well. Now unfortunately, they're trying to change that and success and failure can vary depending on your circumstances.
    Let the failures fail, which is what is happening with the smaller banks. Believe it or not, that's a good thing.

     

    On Dec 04 08:22 PM damienhaas wrote:

     

    > The problem is that they are not fixing them. They saved the big
    > banks and wall streets but let the smaller banks fall. These small
    > banks are the one that support the small businesses.
    5 Dec 2009, 08:15 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs