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| Economy |
| Big Texas bank on verge of failure |
| 2009-08-02 |
| Guaranty Bank is hardly a household name. But the Austin, Texas-based thrift's looming failure is shaping up as a big headache for bank supervisors -- not to mention a black eye for Carl Icahn and others in the smart money set. Guaranty (GFG) could be soon seized by the government in what would be the biggest bank failure in a year that has already had 64 of them. Last week, the bank warned investors to expect a federal takeover after regulators forced a writedown of its risky mortgage investments and a bid to raise new capital failed. Guaranty has $13.4 billion in assets and operates 160 branches in Texas and California -- two of the three best banking markets in the nation, thanks to their size and population growth. But the bank's capital problems and its smallish, scattered network of branches could detract from Guaranty's appeal, making it tough for regulators to find a buyer quickly -- or without substantial federal subsidies. "This may not be closed as quickly as you think, since it will require bids and rebids," said Miami banking consultant Ken Thomas. |
| Posted by:Fred |
| #3 |
| Posted by: Bright Pebbles 2009-08-02 13:18 |
| #2 |
| Posted by: phil_b 2009-08-02 12:52 |
| #1 |
| Posted by: Anonymoose 2009-08-02 10:34 |