McCain Tied to Failure No. 11
On Friday, the Federal Deposit Insurance Corporation took control of the 11th bank this year. The son of presidential candidate Sen. John McCain recently resigned from the board of the failed institution.

The Nevada Financial Institutions Division shut down Silver State Bank, an FDIC announcement Friday said. FDIC has been named receiver.

The failure is the 11th this year for FDIC-insured institutions.
read full story

Stark Warnings From FDIC Chief
The chairman of the Federal Deposit Insurance Corporation warned that the market downturn is far from over, more banks will become troubled and more will fail. She also laid out a number of early signs of problem institutions.

Bank Closes Mortgage Unit
One of the largest community banks in the Northwest is shutting down its mortgage lending division.

Massive ResCap Cutbacks
Residential Capital LLC will stop originating through its wholesale lending subsidiary, shut down 200 retail offices and lay off 5,000 employees in the process.

First Horizon Sale Done
First Horizon National Corp. has parted with its mortgage operations outside Tennessee.

Banking Sector Chaos
One bank was acquired, another collapsed and orders were issued against nearly two dozen others. Meanwhile, two financial institutions announced changes at the top and a failed firm has been resurrected.

Net Branch Winding Down Former executives of Carteret Mortgage Corp. met in December to discuss a strategy for survival. But the company's chief executive officer has decided to throw in the towel. While managers and originators are finding new homes, Carteret's CEO is done with the mortgage business.

More Thornburg Warnings
Thornburg Mortgage Inc. paints a bleak picture of the current state of the mortgage market and its own ability to continue as a going concern. The jumbo lender has stopped originating new business, faced massive downgrades on its mortgage-backed securities and been hit with ongoing margin calls.

Troubled Banks Rise, Delinquency Doubles
Bank earnings fell as the number of troubled institutions rose, delinquency doubled and the sector consolidated.

Corporate Maneuvers
The boardrooms of mortgage-related corporations have been busy dealing with stock exchange listings, capital conservation and legal actions. Large losses continued to plague the sector, while a failed bank was taken over and another firm was spun off.