Tuesday, June 30, 2009

Guaranty Bank - Texas 4th Largest Bank Set to Fail

The crises moves south. According to the Houston Business Journal Guaranty Bank is on its last breath of life. I read the 8k filed yesterday. It would be very unusual for the FDIC to help the bank like it is proposing.

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 in which the FDIC would absorb part of the bank’s losses while private investors provided a “significant equity capital infusion.”

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.

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