In the Martenson Report from this weekend, I mentioned Guaranty Bank of Texas as one of the more obviously insolvent institutions out there.
Looks like the FDIC “moved” on this bank by asking for bids by today. I am confused by this, as I thought this sort of thing mostly happened over the weekend, in private, and out of view. If I were a Guaranty customer, this news would make me run, not walk, to the bank to move my funds. Which is why they typically remain mum prior to a receivership action.
At any rate, here’s the story:
Regulators want Guaranty bids by Monday
Aug 16, 2009
NEW YORK (Reuters) – U.S. banking regulators have asked prospective buyers of struggling Texas bank Guaranty Financial Group to submit bids by Monday, the Financial Times reported, citing people familiar with the matter.
Regulators are hoping that three banks that had bid for Colonial Bank — Canada’s Toronto Dominion, JPMorgan and Spain’s BBVA — will step in to bid for Guaranty, the paper reported on its website on Sunday.
The Federal Deposit Insurance Corp on Friday shuttered Alabama lender Colonial. About $22 billion of Colonial’s assets will be sold to BB&T Corp, a southeast regional bank.
Guaranty is the second-largest publicly traded bank in Texas, with about $16 billion in assets, according to its website.
Good luck with that. I hope the buying banks know what they are doing. One additional element to this story is that the amount of losses that are being incurred as a percentage of assets has been climbing and culminated with the jaw-dropping 50% loss seen in each of three banks this past weekend.
by former_user