Silverton Bank taken over by regulators (30th closure for the year)

[UpInArms]

Source: CBS Marketwatch

SAN FRANCISCO (MarketWatch) -- Regulators on Friday shut down Georgia's Silverton Bank N.A., marking the 30th bank failure this year and the sixth in that state.

Silverton Bank, based in Atlanta, had $4.1 billion in assets and $3.3 billion in deposits at the time of closing. It operated six regional offices.

The Comptroller of the Currency, which closed the bank, appointed the FDIC as receiver.
The bank did not take deposits from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks, the Federal Deposit Insurance Corp. said in a statement.

The FDIC said it has created a bridge bank, to be called Silverton Bridge Bank, N.A., to allow the client banks to maintain their correspondent banking relationship with the least amount of disruption. The FDIC will operate Silverton Bridge Bank, N.A., to allow preexisting marketing efforts for the bank to continue.

Read more: http://www.marketwatch.com/news/story/Georgias-Silverton-Bank-taken-over/story.aspx?guid=%7BC8AEC2C4%2D961B%2D4393%2D9241%2D9858B085F9FE%7D

[Renew Deal]

1. The night is young

:hide:

[tomm2thumbs]

2. I bet the FDIC bank takeover division is hiring LOL

'Travel! See the world! Learn new cultures! It's not just a job - it's an all nighter in a bank going through piles of paperwork!'

[2Design]

3. yes the Bush bank from savings and loan days - right ??? n/t

[UpInArms]

4. no - this is in Georgia - the one you refer to was in Colorado -

it was Silverado Savings and Loan

here's a link to that nasty Bush looting episode

The Bush family and the S&L Scandal


Neil, George Jr., George Sr., and Jeb Bush

The Savings and Loan industry had been experiencing major problems through the late 60s and 70s due to rising inflation and rising interest rates. Because of this there was a move in the 1970s to replace the role of S&L institutions with banks.

In the early 1980s, under Reagan, regulatory changes took place that gave the S&L industry new powers and for the first time in history measures were taken to increase the profitability of S&Ls at the expense of promoting home ownership.

A history of the S&L situation can be found here:

http://www.fdic.gov/bank/historical/s&l/

[Mike 03]

5. This one will be interesting to observe because some people think this could trigger the collapse of

other banks via the domino effect. Time will tell. This was one of those alleged "Too big to fails."

[UpInArms]

6. it was a "cvommercial" bank - here's more info:

http://www.reuters.com/article/bondsNews/idUSN0134071920090501

WASHINGTON, May 1 (Reuters) - U.S. banking regulators seized Silverton Bank of Atlanta on Friday, a bank that provided services to other banks, the biggest bank failure so far this year.

The Federal Deposit Insurance Corp said it had created a bridge bank to take over Silverton, saying this would allow its client banks to maintain their relationship with the least amount of disruption.

Silverton had about $4.1 billion in assets and $3.3 billion deposits and becomes the largest failure since Downey Savings and Loans was seized in November, which had about $12.8 billion in assets.

The FDIC said the failure is expected to cost its deposit insurance fund about $1.3 billion.

Silverton did not take deposits directly from the general public nor did it make loans to consumers. It was a commercial bank that provided correspondent banking services to its client banks.

Silverton had about 1,400 client banks in 44 states, and operated six regional offices, according to the FDIC. Its services included credit card operations, clearing accounts, investments, consulting, purchasing loans and selling loan participations.

The bank was closed by its primary regulator, the Office of the Comptroller of the Currency, and the FDIC was appointed receiver.

...a bit more...

[DemoTex]

7. It seems like an awful lot of Georgia banks have failed.

Any it seems that many are in the northern Atlanta suburbs. Does Georgia have a higher rate of bank failure, or am I just paying closer attention to the state next door?

:shrug:

[UpInArms]

8. this is the 6th Georgia bank to fail this year

more than any other state

no - you're just paying attention

:hi:

[FarCenter]

9. Friday evening failed bank list

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x5577199

[pravin404]

10. Map & List of Failed Banks in 2009

FDIC closed 2 banks this Friday, the MAY DAY.

"Silverton Bank, N.A., Atlanta, GA" and "Citizens Community Bank, Ridgewood, NJ" .

Till now 31 banks have failed this year and 56 from 2008.

Check the list of all the failed banks at :
http://portalseven.com/Failed-Banks-2009

And on google map see where the banks are failing at :
http://portalseven.com/finance/Failed_Banks_Map_2009.jsp

Some statistics about the bank failures :

Silverton Bank, N.A., Atlanta, GA:
# 30th bank to fail this year in USA
# 6th bank from Georgia to fail this year and 11th since 2008
# Has $4.1 billion in assets and $3.3 billion in deposits

Citizens Community Bank, Ridgewood, NJ:
# 31st bank to fail this year in USA
# 1st bank from New Jersey to fail since 2008
# Has $45.1 million in assets and $43.7 million in deposits


Also layoff tracker at :
http://portalseven.com/Layoffs

[UpInArms]

11. here's the 3rd for the night: America West Bank, of Layton, Utah

Regulators close Utah-based America West Bank

SAN FRANCISCO (MarketWatch) -- State and federal regulators late Friday closed America West Bank, of Layton, Utah. It was the third financial institution closed Friday and the 32nd failure of the year. The Federal Deposit Insurance Corp. said in a statement that Cache Valley Bank of Logan, Utah, will assumed all of America West's deposits. As of December 31, 2008, America West Bank had total assets of approximately $299.4 million and total deposits of $284.1 million. Cache Valley Bank paid a discount of $352,000 to acquire all of the deposits of the failed bank.