Guaranty Warns Failure 'Probable' [bank failure looming] [bank has $15 billion in assets]

The Wall Street Journal ^ | 2009-07-25 | Kerry Grace Benn & Kevin Kingsbury

[rabscuttle385]

AUSTIN, Texas -- Bank holding company Guaranty Financial Group Inc. said it is "probable it will not be able to continue as a going concern" as it restated results that include an additional $1.45 billion in write-downs.

The moves, disclosed in a securities filing Thursday, set the stage for the Federal Deposit Insurance Corp. to take over operations of the company, including more than 160 branches in Texas and California.

With about $15 billion in assets, Guaranty could become the biggest federally insured financial firm to fail this year. In May, the banking operations of BankUnited FSB in Coral Gables, Fla., failed with 86 branches and $12.8 billion of assets.

[FromLori]

Thanks gingeroni I bookmarked them,.

[peyton randolph]

Alot of the Guaranty branches in Dallas area are small setups inside of grocery stores. My hunch is that any bank that acquires Guaranty will shut these down as part of consolidation. There’s going to be more job losses rather than hope and audacity...and probably a little change left in the FDIC’s reserves after bailing this one out.