Read all about it! This Week’s Top Line News Summary – 11/2/09

To coin ESPN is it Monday yet? Yes it is and to start the week off we have a round-up of the latest and greatest news in the banking, management and bankruptcy sectors. Enjoy!

Banking: The FDIC had a busy day Friday with the failure and subsequent takeover of nine banks across the country. These failures bring the total number of failed U.S. banks to 115 this year. The nine banks include Bank USA, National Association from Phoenix Arizona and California National Bank in Los Angeles. According to the FDIC, the banks had combined assets of $19.4 billion and deposits of $15.4 billion as of September 30, 2009. The banks also had 153 offices. The FDIC estimates that the failures cost its Deposit Insurance Fund approximately $2.5 billion. For more information and a full list of the banks please click here

Management:  BofA continues its search for a CEO to replace Kenneth Lewis.  According to WSJ, Bank of New York Mellon Corp. CEO Robert Kelly was recently approached about the job, but he has shown no interest.  According to people close to the situation, the board’s search committee is being pushed to look for external candidates.

Bankruptcy: It was on the cards for a while but CIT Group finally filed for bankruptcy Sunday, in a final attempt to restructure and keep the doors open for business. Although it is a huge worry for thousands of small and mid size businesses who have loans with the lender, CIT did in fact garner support from about 90% of voting debt holders for a prepackaged reorganization plan that could allow the lender to speed through Chapter 11 and emerge with a new business model by the end of the year, which should reassure clients.

What news has captured YOUR attention as your week gets started?


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