Business Bankruptcies
Five small banks spread out across the United States were shut down by regulators on Friday, June 26th and the Federal Deposit Insurance Corp. was appointed receiver of all five. The prolonged recession is continuing to adversely affect the banking industry in America. The five banks closed this week bring the total number of bank failures in 2009 to 45. With half the year remaining and little improvement in the economy speculation has been made that the number of bank failures may reach up to 100 by the end of this year. The five banks closed this week include Community Bank of West Georgia and Neighborhood Community Bank, both located in Georgia, Horizon Bank in Pine City, Minnesota, MetroPacific Bank in Irvine, California and Mirae Bank in Los Angeles.
Consumer bankruptcies
Consumer bankruptcies in California seem destined to increase as California State Controller John Chiang stated Friday, June 26th that students, disabled people, low-income seniors, vendors that provide services to the state and counties which run social service programs may get IOU’s instead of checks this coming Thursday if the California lawmakers don’t develop a complete solution to the $24.3 billion deficit. Democrats have proposed cutting and delaying billions in spending but failed to cover the total shortfall. Senate Republicans rejected the plan and Governor Schwarzenegger had already stated he would veto the idea if it did pass.
What did happen Friday is Governor Schwarzenegger mandated that more than 200,000 state workers take a third furlough day each month if a deal is not in place by the end of June, which is the middle of this coming week. Such leaves of absence will save the State of California $420 million but will place an added hardship on state employees who have already absorbed a two day per month mandated “day off” that began in December. Considering the high cost of living and high cultural expectations of the Californian life style the over $400 million dollar reduction in income among 200,000 workers will be seen in increases in foreclosures and bankruptcies.
Mortgage Foreclosures
Chief economist of the National Association of Realtors is warning of the danger of a second wave of foreclosures due to the rising unemployment rates. The twenty-five year high of 9.4% is expected to exceed 10%. As per the Mortgage Bankers Association (MBA), one in eight U.S. homes are either in arrears and heading towards bankruptcy or already have entered into bankruptcy proceedings. The current foreclosures are on prime, fixed rate loans given to the bedrock of Americans. Economist Patrick Newport, at IHS is said Thursday, June 26th that the foreclosure rate is likely to go to 4.5 percent with the worsening economy.
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
Coastal Credit Solutions, Inc. operates a financial market place that matches Consumers and Businesses with debt eliminating and/or alternative financing service providers. If you have over $5,000 personal or business credit card debt or are seeking small business financing, please call us 866-205-8370 for a FREE no obligation consultation.
If you have any questions or comments regarding this article
please contact Coastal News Contributor at news@coastalcreditsolutions.com |
Getting Started 
