Making the Bank-Stocks-That-Are-Toast Bank Stocks That Are Toast, portfolio are shares of Vineyard National Bancorp (VNBC). Last week, Vineyard said that it would need to raise capital and find new sources of liquidity to continue operating for the rest of 2008 Vineyard said that customers have recently withdrawn "significant" deposits and that, "conditions and events cast significant doubt on our ability to continue as a going concern." Management said in its 10Q filings that "negative publicity relating to our financial results and the financial results of other financial institutions, together with the seizure of IndyMac Bank by federal regulators in July 2008, has caused a significant amount of customer deposit withdrawals, thus affecting our liquidity and our ability to meet our obligations as they have come due," Vineyard’s principal markets are in Los Angeles, Riverside and San Bernardino; with about $2 billion in loans. Shares of Vineyard are down a whopping 95% for the year

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Another name making the Bank-Stocks-That-Are-Toast Bank Stocks That Are Toast, portfolio are shares of Corus (CORS). Corus is one of the largest lenders to South Florida condo projects. Corus recently announced that 42% of their condo loan portfolio is either nonaccrual or has potential problems. Last quarter Corus took a net loss of $16.2 million, or 30 cents a diluted share, in the second quarter. It gained $42.4 million, or 74 cents a share, in the year-ago period. Much of its loss came from adding $58 million as a loan loss reserve account for the deterioration of its condo loan portfolio. It ended the quarter with $153 million in reserve as a loan loss allowance. “Unfortunately, we anticipate these difficulties will persist for some time,” Corus President and CEO Robert J. Glickman said

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