From press releases obtained Friday evening from the FDIC - the FDIC has shut several more banks across the country. The announcement took place at 6:13 p.m., and within minutes Suburban Federals website was taken down. This Bank closure hits home. After a long history of community lending 53 years - losses kept piling up from an aggressive lending program that started in 2005. Along with several other banks across the country, the Federal Deposit Insurance Corp FDIC shut Suburban Federal Savings Bank of Crofton, Maryland, Friday. This is the first bank failure in Maryland in over 16 years. The bank failed after it was unable to secure a buyer as requested by the FDIC - who gave them a January 30th deadline to secure a buyer of face closure. So that makes a total of 6 banks shut in January across the US. The Bank of Essex of Tappahannock, Virginia acquired the deposits and Suburban Federal's seven offices. They are scheduled to open today as branches of the Bank of Essex. The Bank of Essex also assured depositors that their deposits were safe. Rising foreclosures and unemployment are placing strains on the banks. The Office of Thrift Supervision OTS said it seized Suburban Federal Savings Bank of Crofton because of losses stemming from residential, construction and land loans. In a statement from OTS said the bank "Suburban was critically undercapitalized and in unsound condition"
This entry hasn't been re-blogged:
- Topic: ActiveRain Community