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June 2019: Unofficial Problem Bank list increased to 76 Institutions, Q2 2019 Transition Matrix

Note: Surferdude808 compiles an unofficial list of Problem Banks compiled only from public sources. DISCLAIMER: This is an unofficial list, the information is from public sources and while deemed to be reliable is not guaranteed. No warranty or representation, expressed or implied, is made as to the accuracy of the information contained herein and same is subject to errors and omissions. This is not intended as investment advice. Please contact CR with any errors. Here is the unofficial problem bank list for June 2019. Here are the monthly changes and a few comments from surferdude808: Update on the Unofficial Problem Bank List for June 2019. During the month, the list increased by three to 76 institutions after a removal and three additions. Assets changed by a nominal $322 million to $55 billion. A year ago, the list held 92 institutions with assets of $60 billion. This month, the action against First Southern Bank (f/k/a The Patterson Bank), Patterson, GA ($123 million) was terminated. Additions this month included The Farmers Bank, Carnegie, OK ($121 million); Home Bank of Arkansas, Portland, AR ($76 million); and State Bank, Green River, WY ($29 million). Also, thanks to a reader that identified an institution not included within the list – CornerstoneBank, Atlanta, GA ($219 million), that has been operating under a Consent Order since 2012. With the conclusion of the second quarter, we bring an updated transition matrix to detail how banks are transitioning off the Unofficial Problem Bank List. Since the Unofficial Problem Bank List was first published on August 7, 2009 with 389 institutions, 1,747 institutions have appeared on a weekly or monthly list since the start of publication. Only 4.2 percent of the banks that have appeared on a list remain today as 1,671 institutions have transitioned through the list. Departure methods include 984 action terminations, 406 failures, 262 mergers, and 19 voluntary liquidations. Of the 389 institutions on the first published list, only 6 or 1.5 percent, are still designated as being in a troubled status more than nine years later. The 406 failures represent 23.3 percent of the 1,747 institutions that have made an appearance on the list. This failure rate is well above the 10-12 percent rate frequently cited in media reports on the failure rate of banks on the FDIC's official list.Unofficial Problem Bank ListChange Summary  Number of InstitutionsAssets ($Thousands)Start (8/7/2009)  389276,313,429   Subtractions        Action Terminated179(68,279,301)  Unassisted Merger41(10,072,112)  Voluntary Liquidation5(10,672,586)  Failures158(186,397,337)  Asset Change345,554  Still on List at 6/30/2019  61,237,647  Additions after 8/7/2009  7053,790,865  End (6/30/2019)  7655,028,512  Intraperiod Removals1        Action Terminated805325,312,142  Unassisted Merger22182,691,403  Voluntary Liquidation142,558,186  Failures248125,152,210  Total1,288535,731,9411Institution not on 8/7/2009 or 6/30/2019 list but appeared on a weekly list. Read the full article

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AUTO-DRAFT

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Update: A few comments on the Seasonal Pattern for House Prices

Update: A few comments on the Seasonal Pattern for House Prices

CR Note: This is a repeat of earlier posts with updated graphs.

A few key points: 1) There is a clear seasonal pattern for house prices. 2) The surge in distressed sales during the housing bust distorted the seasonal pattern. 3) Even though distressed sales are down significantly, the seasonal factor is based on several years of data – and the factor is now overstating the seasonal change (second…

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As the G-20 approaches, policy uncertainty weighs on emerging markets

As the G-20 approaches, policy uncertainty weighs on emerging markets

On the positive side, we see room for more policy action from EM central banks.

In my view, a trade war between the US and China is the key risk to the global economy. In a world of integrated supply chains and connected financial markets, its impact is bound to spill beyond their borders and affect the global economy. All eyes are now turned to the June 28 G-20 summit, where the two countries’…

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"A Conversation with Jerome H. Powell"

“A Conversation with Jerome H. Powell”

Live video for A Conversation with Jerome H. Powell

Speech by Chair Powell on the economic outlook and monetary policy review

The Fed is insulated from short-term political pressures—what is often referred to as our “independence.” Congress chose to insulate the Fed this way because it had seen the damage that often arises when policy bends to short-term political interests. Central banks in…

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A few Comments on May New Home Sales

A few Comments on May New Home Sales

New home sales for May were reported at 626,000 on a seasonally adjusted annual rate basis (SAAR). Sales for April were revised up slightly, and sales for March were revised down.

Earlier: New Home Sales decreased to 626,000 Annual Rate in May.

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Here’s How Many Affordable Homes Could Be Purchased For $238 Million–The Price of Most Expensive U.S. Home Ever Sold

Here’s How Many Affordable Homes Could Be Purchased For $238 Million–The Price of Most Expensive U.S. Home Ever Sold

Hint: it’s every single affordable house on the market in Deltona, Fl, or half of all homes for sale in Akron, OH.

  For the $238 million spent on the most expensive American home ever sold, approximately 1,100 affordable homes could have been purchased.

The record-breaking sale was made by the founder of a global investment firm in January of 2019. The home fills 24,000 square feet–the average

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New Home Sales decreased to 626,000 Annual Rate in May

New Home Sales decreased to 626,000 Annual Rate in May

The Census Bureau reports New Home Sales in May were at a seasonally adjusted annual rate (SAAR) of 626 thousand.

The previous three months were revised down slightly, combined.

“Sales of new single‐family houses in May 2019 were at a seasonally adjusted annual rate of 626,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban…

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Emperor Investments: Not Your Typical Robo Advisor Emperor Investments sponsor this post. All opinions are my own. The rise of the robo advisors might sound like a Hollywood movie title, but in recent years they are increasing in popularity.

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Case-Shiller: National House Price Index increased 3.5% year-over-year in April

Case-Shiller: National House Price Index increased 3.5% year-over-year in April

S&P/Case-Shiller released the monthly Home Price Indices for March (“April” is a 3 month average of February, March and April prices).

This release includes prices for 20 individual cities, two composite indices (for 10 cities and 20 cities) and the monthly National index.

Note: Case-Shiller reports Not Seasonally Adjusted (NSA), I use the SA data for the graphs.

From S&P: Annual Home Price…

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Having a Professional on Your Side Makes All the Difference! In today’s fast-paced world where answers are a Google search away, there are some who may wonder what the benefits of hiring a real estate professional to help them in their home search are.

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Boris Johnson is making increasing inequality the priority for all he does

Boris Johnson is making increasing inequality the priority for all he does

I have already referred to my book The Joy of Tax once this morning. Let me do so again. In it I described tax as the single most powerful mechanism available to a government to influence behaviour and shape the society it wants in what might be called ‘normal times’. In that context let me note the IFS analysis of Boris Johnson’s tax plans. As the FT notes:

Boris Johnson’s tax cut proposals…

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The government’s new policy on the climate crisis is ‘let us burn’

The government’s new policy on the climate crisis is ‘let us burn’

The Guardian features an article this morning that tells us a great deal about the priorities of the UK government when it comes to the climate crisis. As they note: 

Homes hoping to shrink their carbon footprints by installing a solar-battery system face a steep VAT increase from October under new laws proposed by HMRC.

The Treasury put forward legislation on Monday to raise VAT for home…

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The risk of too little inflation

The risk of too little inflation

By any account the U.S. equity market is having a stellar year. Stocks have benefited from easier financial conditions, which have in turn pushed up market multiples. By a happy coincidence, gains in market multiples have exactly matched the 15% gain in the S&P 500 Index.

But while stocks have benefited from cheap money and higher multiples, they have more recently been constrained by concerns…

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It’s Not All About Demand: Home Prices are Sky-High Where It’s Most Difficult and Most Expensive to Acquire and Develop Land

It’s Not All About Demand: Home Prices are Sky-High Where It’s Most Difficult and Most Expensive to Acquire and Develop Land

In San Francisco, San Jose, Los Angeles and Boston, the value of land accounts for more than half of a typical home’s value. Land’s share of home value is roughly 20 percent in Buffalo, Omaha, Indianapolis and Cincinnati. Potential homebuyers are priced out because of high land costs making homes very expensive.

In recent years, housing demand has outpaced housing supply, leading to a 52…

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Tuesday: New Home Sales, Case-Shiller House Prices, Fed Chair Powell Speech

Tuesday: New Home Sales, Case-Shiller House Prices, Fed Chair Powell Speech

From Matthew Graham at Mortgage News Daily: Rates Catch a Break to Remain Near Long-Term Lows

Mortgage rates were generally flat today, depending on the lender. Some were noticeably better while others were a hair worse. In both cases, rates are very close to the lowest levels since late 2016. Changes from Friday would most likely be measured in terms of upfront costs as opposed to differences in…

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Save & Pay Down Debt – Faster or Slower?

Save & Pay Down Debt – Faster or Slower?

Many of my clients are often wondering how to pay down their debts fast and save even faster. So, if you are thinking the same, then you are definitely not alone. Do you want to know the best way to pay down your debt faster and save faster? Well, my friend, its called automation. Automation is the easiest way of saving money because as soon as you set it up, you are not thinking about it. It…