The FDIC is right on schedule. Another Friday night, another seized bank, bringing the total to 11 this year. This time it’s Silver State Bank of Henderson, Nevada.
Regulators closed Silver State Bank on Friday, the 11th U.S. bank to fail this year as the struggling economy and falling home prices take their toll on financial institutions.
The Federal Deposit Insurance Corp said the Henderson, Nevada bank had $2 billion in assets and $1.7 billion in deposits as of June 30. The failure is expected to cost the FDIC deposit insurance fund between $450 million and $550 million.
Nevada State Bank, which is based in Las Vegas, has agreed to assume the insured deposits. The transaction did not include about $700 million in volatile, high-cost insured funds called brokered deposits
The official FDIC press release can be seen here. Former director Andrew McCain, son of presidential candidate John McCain, resigned from the board in July.
In July, Silver State announced the resignation of Andrew McCain as a director of the bank. McCain, who had served on the audit committee and was a director for five months, is the son of Republican presidential nominee John McCain. A call to the campaign’s press line wasn’t immediately returned.
The response from the McCain camp should be interesting.
We had previously covered the shutdown of Silver State’s wholesale/commercial lending bank operations on the Mortgage Lender Implode-o-Meter. The legacy of those activities most likely came back to haunt the bank itself.
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