Regulators shut down 5 more banks in Georgia, Michigan, Minnesota, Missouri and California; tally hits 120 so far this year  U.S. regulators on Friday shuttered five more institutions in Georgia, Michigan, Minnesota, Missouri and California , as the recession continues to take its toll on banks. This takes the total number to 120, compared to 25 in 2008 and 3 in 2007.  As the industry has to tolerate bad loans that were made during the credit explosion, the trouble in the banking system goes even deeper, increasing the possibility of more failures. However, the regulators are trying to avoid panic by seizing banks slowly. Also, the slow pace of seizing could be a strategy as it is hard to get buyers for so many failed banks.  The failed banks were -- Georgia-based United Security Bank of Sparta with total assets of $157 million and total deposits ...

In order to replenish the declining fund of the Federal Deposit Insurance Corporation (FDIC) that insures regular deposit accounts when banks fail, the agency may ask U.S. banks to prepay fees for three years. Under the plan, banks would have to prepay their insurance premiums of $12 billion a year for 2010-2012, for a total of about $36 billion. The fees could, however, vary somewhat according to growth in total insured deposits. The FDIC board will discuss the issue today at its public meeting. The prepayment proposal is likely to get opposition from banks as the size of the upfront fees is significant and the banks are just at the start of their recovery period. The agency could again propose an emergency assessment, or a transfer of cash collected in fees from the FDIC's temporary rescue program that guarantees huge debt that banks issue to each ...

About a year ago, during the height of the crisis, the government started bailing out the banks to help revive deteriorating credit and lending markets, but the situation is going to be reversed as the regulators are considering asking healthy banks to bail out the government soon, in order to replenish the declining fund of the Federal Deposit Insurance Corporation (FDIC) that insures regular deposit accounts when banks fail. The tally of failed federally insured banks has reached 94 so far this year, causing a rapid decline in the FDIC’s deposit insurance fund as it has been appointed receiver for these banks. Despite imposing a special assessment charge on banks a few months ago, the FDIC’s cash balance now stands at a third of its size at the start of the year. As a result, the current move would be a great relief for the FDIC. The ...

For Immediate Release

Chicago, IL – August 25, 2009 – Zacks Equity Research highlights Transcept Pharmaceuticals (TSPT) as the Bull of the Day and Nabors Industries (NBR) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Guaranty Financial Group Inc. (GFG), Banco Bilbao Vizcaya Argentaria (BBVA) and BB&T Corporation (BBT).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

We recently initiated coverage of Transcept Pharmaceuticals (TSPT) with an Outperform rating and $12 price target. We think Intermezzo is a product that can fill a much needed void for insomnia patients with chronic nocturnal awakenings.

An FDA decision on the pending new drug application is expected in late October 2009. We think approval is a high likelihood event at that time.

With the commercialization

...

The bank failure scene in the U.S. turned a shade uglier over the weekend. By this time tomorrow, it’ll probably be even worse.

For starters, Guaranty Financial of Texas went belly up late Friday and secured a spot in the history books. With $13 billion in “assets,” the bank is the third largest to fail this year and tied for the 11th biggest bank failure in U.S. history.

Even more interestingly, the FDIC brokered Guaranty’s assets to Banco Bilbao Vizcaya Argentaria, a bank from northern Spain. We’re surprised on two fronts here: 1) That a bank from Spain — strapped with double-digit unemployment and a wretched housing bust — wants to bring their euros to I.O.U.S.A. 2) That BBVA already has a huge presence in Texas. With this acquisition, they will be the fourth largest banking chain in the Lone Star State. That could be an interesting trend to watch.

Three other

...

Alabama regional lender, Colonial Bank, just became the 6th largest bank failure in U.S. history and the largest since Washington Mutual last year.

Regulators seized Colonial last Friday, selling the bank’s deposits and assets to their competitor BB&T. Colonial was founded by real estate developer, Robert E. Lowder in 1981. The bank stayed true to its roots, right to the end (of the housing bubble).

In a 2006 interview, Lowder said, “We’ve always been a real estate bank. We understand real estate lending. For us, we think it’s a good safe market to be in.” Evidently, they didn’t understand the market as well as they thought. The bank sunk under the weight of $1.7 billion in losses on bad real estate loans.

The real question regarding the failure of Colonial, is what this will do to the Deposit Insurance Fund (DIF) maintained by the FDIC.

The FDIC Deposit Insurance Fund started 2008

...

PennyOmega.com Stock Report!

PennyOmega.com Hot Stock News & Alerts!

 

Friday August 7, 2009

PennyOmega.com Stock Report!

**************************************************************

Ark Restaurants Corp. (NASDAQ:ARKR) today reported financial results for the third quarter and nine month periods ended June 27, 2009. Total revenues from continuing operations for the three month period ended June 27, 2009 were $31.1 million versus $36 million in the same period last year. Total revenues from continuing operations for the nine month period ended June 27, 2009 were $81.7 million versus $90.8 million in the same period last year.

Continental Airlines (NYSE: CAL) today announced a summer promotional $59 one-way fare for US Helicopter service between its New York hub at Newark Liberty International Airport and Manhattan.

...

PennyOmega.com Stock Report!

PennyOmega.com Hot Stock News & Alerts!

 

Friday July 24, 2009

PennyOmega.com Stock Report!

**************************************************************

Bankrate, Inc. (Nasdaq: RATE) announced today that it plans to hold a conference call on July 30, 2009 at 11:00 A.M. Eastern time to discuss the company’s second quarter 2009 financial results. The call will be led by Bankrate’s President and Chief Executive Officer, Thomas R. Evans. Also participating in the call will be Edward J. DiMaria, Senior Vice President and Chief Financial Officer. A press release on the results for the quarter will be issued before the market opens on July 30th.

Iowa First Bancshares Corp. (OTCBB: IOFB) today reported net income of $650,000 for the quarter ended June

...

On July 23, 2009 before the opening bell, Huntington Bancshares Inc (HBAN) reported second quarter 2009 results. Core earnings were ($0.44) per share abysmally missing our as well as Street’s expectations. We expected a loss of $0.03 per share. Last year earning was $0.28 per share. Net loss (GAAP) was $0.40 per share, compared to $0.25 last year.  Net interest margin expanded 13 basis points sequentially but shrank 19 basis points year over year to 3.10%.  Credit metrics continued to experience substantial erosion again in this quarter. Net charge-offs were 3.43% of average total loans and leases, up from 3.34% last quarter and 0.64% last year. NPA ratio was 5.18%, up from 4.46% last quarter and 1.52% last year. Provision for loans and leases were $413.7 million, down $121.9 million sequentially but up $292.9 million year-over-year.  Book value per share declined to $6.23 per share ...

We highlight JP Morgan Chase & Co., Inc. (JPM), BankUnited Financial Corp. (BKUNA), Wells Fargo & Co. (WFC) and Bank of America Corp. (BAC).As the FDIC has had to step in to take over more and more insolvent banks, the fund has dwindled to dangerously low levels. At the same time, the number of problem banks continues to grow at a rapid pace.At the end of the first quarter there were 305 "problem institutions" with a total of $220.0 billion in assets, up from 252 institutions and $159.4 billion in assets at the end of 2008. At the end of the quarter, the Deposit insurance fund was at just $13.0 billion, or 0.27% of insured deposits, a decline of 24.7% in the quarter alone.The first graph (from http://www.calculatedriskblog.com/) shows the steep drop in the coverage ratio. Just a ...