Posted on 06/29/2009 5:40:41 PM PDT by AH_LiveRight
The only way Guaranty Bank will survive is with assistance from the Federal Deposit Insurance Corp. and significant capital from private investors, the bank said in a regulatory filing Monday.
Guaranty’s parent company, Guaranty Financial Group Inc., stated that it is in discussions with the FDIC and its primary regulator, the Office of Thrift Supervision, for a plan where the FDIC would absorb a portion of the bank’s losses while private investors provide a “significant equity capital infusion.”
Guaranty’s largest shareholders are Dallas billionaire Robert Rowling and activist investor Carl Icahn, who control 20% and just more than 17% of the bank's common stock, respectively.
Guaranty is the fourth-largest independent banking institution based in Texas. It has 162 offices in Texas and California and $11.6 billion in deposits, according to the latest data available.
"Guaranty Bank continues to work closely with its regulators to find a way forward," said bank spokesman John Wessman in a written statement. "We believe strongly that open bank assistance is in the best interest of our depositors, and that it meets the standard of being the least costly alternative for government regulators.”
Bank representatives declined to comment further. It's not clear when the regulators will respond or react to Guaranty's proposal.
snip
At $14.4 billion in assets, Guaranty Bank is bigger than the largest bank that has failed so far this year, a distinction now held by BankUnited FSB of Coral Gables, Fla. The bank had $12.8 billion in assets when it failed, according to the FDIC. The bulk of BankUnited’s good assets were sold in May to a private equity investment group led by W.L. Ross & Co. and Carlyle Group.
Before that, BankUnited had proposed an open assistance plan to regulators, but word of that plan didn’t become public until after BankUnited failed.
(Excerpt) Read more at bizjournals.com ...
http://news.yahoo.com/s/ap/20090627/ap_on_bi_ge/us_bank_closures_6
Not to be a naysayer, but the month of July looks very ugly for commercial real estate and banking.
We could’ve saved trillions if we’d have just let them fail.
Rip the band aid off, ya bunch of wusses.
Hah. They simply had a band-aid on a sucking chest wound with arterial bleeds. And we the taxpayers suckers get stuck with the bill. No clawback from the politicians.
later
Is it Failure Friday already?
No big deal. They’ll just print up some more greenbacks. Problem solved.
Wow.
Saying so in a public filing on a Monday?
Icahn is playing chicken with the FDIC.
When failure Fridays start happening on Mondays, we know we are about to be fried.
Yes. And Robert Rowling is not going to eat a $1.7 Billion loss.
Actually, we should send the bill to Bawny Fwank and his buddy, Wiener!
Especially during a non-leap year!
(Sung to the tune of "Raw Hide")...
Runnin' runnin' runnin',
Let's keep them presses runnin',
Keep them presses runnin', and hide
Through graft and greed and mayhem
Keep them banks from closin'
Keep them banks from closin', and hide
Printin' printin' printin' ...
Printin' printin' printin' ...
Soon they'll be searchin' far and wide...
Close them down, wipe out all the bonds, make all the depositors whole (up to the FDIC limit), and if there is any money left over after that, that’s what’s left for the stockholders. My guess is that amount must already be zero, or worse.
Geithner's calculatin'
The Chinese will be waitin'
Waitin' for the end of the ride
It would be funny if we weren't so screwed.
Temple-Inland (NYSE: TIN) completed the spinoff on Dec. 28, 2007, just as the excesses of the residential mortgage lending bubble became apparent.
Guaranty invested heavily in securities backed by mortgages made in California. It has not reported a quarterly profit since it became a stand-alone institution.
Since its spinout from Temple Inland, Icahn and Rowling have invested heavily in Guaranty. In July, the duo invested an additional $600 million in Guaranty. They control 37 percent of Guaranty stock.
That last paragraph is intriguing to me.
So this Icahn guy sees the bubble getting ready to burst so he insists that the parent company spin it off (get rid of it). Then, he personally puts a ton of his money into it in July when they had to know by then that federal bailout money was about to come flying out of Washington.
Is there a way he stands to make money by being bailed out?
To answer a question with a question:
If you are not losing money, you are ______ money.
Some would fill in the blanks with m a k i n g.
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