Friday, May 01, 2009
This is pretty bad...
FDIC: FDIC Creates Bridge Bank to Take Over Operations of Silverton Bank, National Association, Atlanta, Georgia
At the time of its closing, Silverton Bank had approximately $4.1 billion in assets and $3.3 billion in deposits, all of which are expected to be within the FDIC's insurance limits.
Silverton Bank had approximately 1,400 client banks in 44 states, and operated six regional offices. It provided a variety of services for its clients, including credit card operations, clearing accounts, investments, consulting, purchasing loans, and selling loan participations.
Posted by mark @ 09:29 PM (607 views) Add Comment
2 Comments
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1. Dead Spider said...
"Silverton Bank 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."
How can that fail , exactly ?
They need pens and the occasional computer ??
2. devo said...
This failure was massive having $4.1 billion in assets, and $3.3 billion in deposits. The FDIC was unable to find an appropriate buyer and instead had to create an intermediary organization out of thin air to allow the receivership process, called the Silverton Bridge Bank.
The FDIC had this to say about the bridge bank:
The creation of the bridge bank allows 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.
http://zerohedge.blogspot.com/2009/05/may-day-friday-bank-failure-count-up.html