Seven Troubled Banks Shut in New Hampshire

39The Federal Deposit Insurance Corporation yesterday closed a group of seven New Hamphire banks owned by five diffferent banking companies, and said the banks would open today under new ownership.

The failed banks, which account for about a quarter of the New Hampshire market, were closed and sold as a group rather than individually, to limit disruption of the local economy, L. William Seidman, chairman of the F.D.I.C. said. Officials at the agency have said they may consider similar treatment of other clusters of weak banks.

Deposits of all the banks continue to be insured by the F.D.I.C. for up to $100,000 for each account, and all customer accounts will be transferred to the new owners. While the five banking companies had total assets of about $5.2 billion, the F.D.I.C. estimated the cost to the Government of the failures at $966 million. The unusually large loss, compared with the size of the banks, is an indication of the severity of the banks’ problems with bad real estate loans. 4 Go to First NH Bank

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New Hampshire Businessman Files to Set Up Rare New Bank

FILE - In this March 10, 2014 file photo, Jeffrey Thompson holds up his hands to indicate he will not speak to reporters as leaves federal court in Washington, after being charged in a criminal information with two conspiracy offenses stemming from an ongoing investigation. Thompson, a District of Columbia businessman who poured millions of illegal dollars into city, state and federal elections has been sentenced to three months in prison. (AP Photo/Cliff Owen, File)

Bill Greiner is fed up with banks. But instead of quietly seething or complaining to customer service, the 48-year-old is taking a more radical approach: He is trying to launch his own lender.

Mr. Greiner’s proposal, filed with regulators in October, is the first deposit-insurance application for a new bank that the Federal Deposit Insurance Corp. has received all year. If Primary Bank, Mr. Greiner’s proposed firm, wins approval, it would be only the second new bank the FDIC has cleared in the U.S. since 2010. The FDIC declined to comment on Primary Bank.

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New Hampshire Overhauls Banking and Credit Union Laws

37New Hampshire has a new set of laws regulating banks and credit unions. The laws were developed by a working group headed by the Deputy Bank Commissioner that met for nearly a year and a half to review and revise existing laws. Representatives from banks, credit unions, trust companies, insurance companies and securities firms participated in the group. Their recommendations became Senate Bill 188, which passed the House and the Senate as Chapter 272 and was signed into law by the Governor on July 27, 2015. The effective date for most of the chapter is October 1, 2015; however, certain sections that involve the Banking Department’s budget went into effect in this fiscal year as of July 1, 2015.

None of the laws involved affect consumers; rather they are focused on the organization, management and operation of banks and credit unions and transactions such as business combinations, and out of state activities.

NH Banking Laws Had Become Outdated

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Targeted Credit Card Offers, Designs Attract New Users

36Organizations from book clubs to non-profits are getting into the credit card business, offering incentives such as books, tote bags, and other freebies for signing up. The cards are offered through these organizations from conventional credit card companies, and can feature ongoing special benefits related to the user’s interests. The credit cards often feature designs that reflect the organization’s value; a book club-related credit card may offer literary designs, while a card offered by an environmental organization may offer a variety of nature or animal themes.

The benefits to the credit card companies involved are obvious; but what do the organizations themselves gain? For one thing, it is well known that people who make purchases using credit cards spend more than people who pay with cash or by check; the organizations are banking on that to increase their customers’ or members’ purchases or donations. For another, a credit card design that carries the organization’s name and design is a practical, ever-present advertisement for that organization.

The credit card companies can offer cash and other incentives to the organizations for allowing them to promote their cards to members, and may also offer ongoing payments based on their customers’ purchase or donation history. The arrangement is good business for the credit card company and for the organizations. The members themselves need to be careful; interest rates are often high, or offer a low initial rate with a big boost after the introductory period is over. If the interest rate is low, if it offers the ability to transfer balances from higher-interest rate cards, and if the member’s financial situation warrants, then it could be a great deal.

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New Loan Modification Laws For 2011

35Well, 2011 is here and the loan modification industry is about to be all shook up. There are new laws going into effect in the end of January, 2011 that will impact many loan modification companies.

The new change is a federal law that prohibits upfront fees from any loan modification company. Of course, attorneys can get around this. This means that if you hire a company to help you get a loan modification approved, they can’t charge you fees until your modification is approved by your lender.

This really doesn’t effect Californians so much, as California has adopted this policy already, but companies who were doing business in California and providing loan modification services for homeowners in other states are definitely going to be impacted.

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