From today’s Arizona Republic:
Silver State Bank, which has four branches scattered across the Valley and ties to a son of presidential nominee John McCain, was shut down by regulators late Friday after struggling with losses due to real-estate loans gone bad in Nevada and Arizona.
The Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Henderson, Nev. It had $2 billion in assets and $1.7 billion in deposits as of June 30.
The branches of Silver State Bank will open on Monday as National Bank of Arizona in Arizona and as Nevada State Bank in Nevada, and Silver State depositors will become depositors of the acquiring banks
This was the 11th failure this year of a federally insured bank and the second in Arizona. First National Bank, the state’s largest locally based bank and a specialist in lower-quality mortgages, was closed by regulators July 25, a victim of problem loans and the lingering real-estate slump.
This is estimated to cost the FDIC between $450M and $550M as opposed to IndyMac, which estimates indicate will cost the FDIC $8.9B.
Heckuva job, Bairie!
Sheila Bair is still way behind the curve in closing insolvent banks.
WC-
My guess is they are shooting for one bank a week. If you take out too many at once, people might think that the banks are in trouble.
A couple of years ago I attempted to open a CD at Silver State. They refused to let me because I wasn’t carrying a Social Security card. I knew the number, of course, but they insisted on seeing the red and blue card itself. (I left and never did business with them at all.) Had they been that careful with their borrowers instead of their depositors, they wouldn’t have failed.
you can only wish that it was the fact that you didnt have a SS card. The problem is because of McCain son, and it election year, being high profile and will be written on all forms of media, people got scared just like what had happen to INDYSMACK. People ran to the nearest branch and withdraw there funds. The reality is this… if we all ran to the nearest bank and withdrawn our money, every bank in the world would fail. it has to do with being capitalized!!!! you become under cap when people dash out and take money out of the bank!