Posted on 01/30/2009 4:21:43 PM PST by rabscuttle385
Federal regulators this evening seized Suburban Federal Savings Bank in Crofton, Md., in the first bank failure in the Washington area since 1993.
Suburban Federal, a small bank with seven branches, was immediately sold to Virginia-based Bank of Essex. All deposits were protected.
The failure was not a surprise. Suburban Federal was freighted by mounting losses on a portfolio of mortgage loans. The company had been told to find a buyer or face seizure. An insurance company briefly flirted with the idea, then backed away. Last week, regulators had issued the bank a final warning.
The problems in the banking industry have fallen disproportionately on banks that focus on mortgage lending, as did Suburban Federal. The bank's regulator, the Office of Thrift Supervision, said the bank had rapidly expanded into riskier kinds of lending beginning in 2005.
(Excerpt) Read more at washingtonpost.com ...
Maryland “Freak State” PING!
The Feds screwed this one up big time. Instead of being flexible and getting bids from banks for the whole thing not including $3mm of UNFUNDED pension liabilities, they insisted that bidding banks pick that too, so no bids. Then they decided to sell it piecemeal after telling the world that they only had a week to sell it them selves. Again,no bids becaue the Feds would not give prospective bidders time to work through a bid package.
That one was unusual because the OTS apparently gave several days advance notice. AP ran a story a few days ago that they had to sell themselves by Friday or they would be closed.
This is my bank, nothing changed but the name on the door.
Texas Ratio 495 .... top of the most recent list that I could find...
Is anyone dedicating space to keeping TEXAS RATIO current?
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