Happy 30th! That is, 30th FDIC bank failure of 2009 (there have been other sorts of failures, such as those of credit unions, as we document here at bankimplode).
Silverton Bank was a wholesale bank based in Atlanta, but with operations reaching out over the whole country. As CNN Money reports, Silverton served upwards of 1,400 other banking institutions around the country. They also report:
Silverton Bank did not take deposits directly from the general public or make loans to consumers. Instead, it offered a wide variety of services, such as foreign wire transfers, as well as clearing and cash management, to other banks.
Per this Reuters article, about $1B in bad commercial real estate loans were blamed for the Silverton collapse.
The bank had $4.1B in assets and $3.3B in deposits (100% of which are reportedly covered by the FDIC). The FDIC estimates a cost of $1.3B to the “insurance fund”.
A “bridge bank” was created to take over the assets of Silverton.
<>
Comments
Comment on this post! (Requires free membership in the Implode-Explode forums!)