US Government Bails Out Citigroup, once the largest U.S. bank

Nov 24 2008 Best-Mortgage-Companies.com Officials agreed to a $326 billion rescue of the company that was once the largest U.S. bank. The government intends to invest $20 billion in Citigroup and to guarantee as much as $306 billion of its troubled assets. The deal will make the government the largest Citigroup shareholder with 7.8% of its shares. The deal marks the latest of several government moves to buy direct investment in banks in order to bolster their balance sheets and restore confidence in the entire U.S. banking system.

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Giant bank to axe thousands of jobs

Nov 17 2008 Best-Mortgage-Companies.com J.P. Morgan is planning to cut thousands of jobs across its worldwide operations. So is Citigroup, which is having a meeting this morning to pare about 10% of its workforce. Lay-offs in the financial industry are not only happening in the United States but also across Europe. Definitely, the US recession is spreading to the world.

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Citigroup Offers Relief To Mortgage Borrowers

Nov 10 2008 Best-Mortgage-Companies.com Citigroup Inc. plans to modify loan terms for mortgage borrowers who are current on their loan payments but at risk of being delinquent. This aggressive move targets mortgages worth as much as $20 billion. The plan will not only help ailing homeowners, but it will also help the company reduce loan losses.

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Citigroup loses $1.4 Billion in Credit Cards

Nov 3 2008 Best-Mortgage-Companies.com Citigroup declared it lost $1.4 billion in the third quarter from credit card backed securities. The company said it expects losses to rise next year. Citi also said it added $3.9 billion to overall credit reserves, including $2.3 billion for its North American consumer business and $855 million non-US business. Citi said the additional reserve to the North American section was mostly due to the weakening of the credit markets, including higher delinquencies on first mortgages, unsecured personal loans, credit cards and auto loans. The credit card industry is in turmoil. American Express, a credit card giant, announced last week plans to slash 7,000 jobs.

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Feds To Bail Out 2 Dozen Banks

OCt 27, 2008 Best-Mortgage-Companies.com Sources said Monday October 27, 2008 that FED’s regulators have decided to help a dozen banks with capital from the government. But the companies' names were not released in order to avoid creating winners and losers in the financial market , for the latter could have faced negative sentiments from customers, counterparties and investors. The bailout was evidenced by PNC receiving $7.7 billion in federal funds, which allowed the company to buy ailing National City Bank. Alabama-based Regions Financial said earlier this week that the government had accepted its application to be part of the program. An initial $125 billion was allocated to nine of the largest US banks, including Citigroup, JP Morgan Chase and Bank of America.

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PNC to acquire struggling bank

Oct 27, 2008 Best-Mortgage-Companies.com In a deal worth about $5.6 billion, Pittsburgh-based PNC will acquire ailing bank National City. The sale, which values National City at $2.23 per share, would create the nation's fifth-largest US bank with $180 billion in deposits. PNC is exchanging $5.2 billion in stock and paying an additional $384 million in cash for National City.

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New technologies to make your home smarter

Oct 22 2008 Best-Mortgage-Companies.com Wired-home technology is getting more affordable for the average homeowner. Some of the first home automation systems were priced at $35,000 to $45,000. Today, similar systems cost as low as $2,500. More and more technology can be woven into our homes. To get most of these home innovations, all your computers and electronics will be networked. With a digitally networked home, you can manage your music and movie files on a media server so they can be heard or watched in any connected room. You can control your lights, your thermostat and even your window blinds with a touch of a button. Movies can be downloaded from the Internet and watched immediately on your big-screen televisions.

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Rates ease but credit still freezes

Oct 19 2008 Best-Mortgage-Companies.com Bank-to-bank lending rates went lower last Friday and demand for Treasury bills let up slightly, but there are signs companies that need credit most might not be able to obtain it. Corporate bonds are being issued at the slowest pace in a decade, and it's been three weeks since a high-yield corporate bond has been issued. This drought is partially due to companies sitting on the sidelines, waiting for conditions to improve. But it's also because there are not enough buyers. This is a problem, because when companies can't get funding from the markets, they have to draw down their credit facilities with their banks -- which often forces banks to jack up their rates.

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WIll Your Bank Weather The Storm?

Oct 12, 2008 Best-Mortgage-Companies.com Use these THREE measures to find out: Risk-based capital ratio The FDIC mandates that a bank's risk-based capital be no less than 6% of its total assets. You'd like a little more cushion than that--perhaps 8%. To find this ratio in the call report, turn to the Regulatory Capital section, called Schedule RC-R, and look for the line item "Total risk-based capital ratio." Loan-to-deposit ratio The larger that percentage, the greater the risk the bank has taken on. If customers begin to pull deposits, the bank might be suddenly strapped for cash. It should be between 95% to 105%. To find this measure, divide "loans and leases, net of unearned income and allowance" (item 4.d. in Schedule RC-Balance Sheet) by "deposits" (item 13 in the same Schedule). Amount of non-current loans (those 30 days or more past due) vs. total amount lent. To calculate your bank's percentage, divide the total dollar amount of loans that are 30 days or more past due (found in Schedule RC-N) by total loans and leases (again, item 4.d. in Schedule RC-Balance Sheet). If your bank is struggling and the FDIC takes it over, know that you may not have access to your funds for several days during the change-over period. To be safe, small-business owners should have a week's worth of operating expenses deposited at another institution.

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Two more banks collapse

Oct 10, 2008 Best-Mortgage-Companies.com Main Street Bank of Northville, Michigan and Meridian Bank of Eldred, Illinois became the latest victims of the ongoing financial crisis as their deposits were transferred respectively by the Federal Deposit Insurance Corp to Monroe Bank & Trust and National Bank yesterday October 10, 2008.

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Mortgage Rates Increase Sharply
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