Franklin Bank Closed by the FDIC
Posted on | November 7, 2008 | 2 Comments
Please use Subprime Blogger to get your needed information on daily mortgage rates.
The FDIC released the following statement today:
Franklin Bank, S.S.B., Houston, Texas, was closed today by the Texas Department of Savings and Mortgage Lending, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Prosperity Bank, El Campo, Texas, to assume all of the deposits, including those that exceeded the insurance limit, of Franklin Bank.
Franklin Bank’s 46 offices will reopen as branches of Prosperity Bank under their normal hours, including those with Saturday hours. Depositors of the failed bank automatically become depositors of Prosperity Bank. Customers of both banks should continue to use their existing branches until Prosperity Bank can fully integrate the deposit records of Franklin Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage.
As of September 30, 2008, Franklin Bank had total assets of $5.1 billion and total deposits of $3.7 billion. Prosperity Bank agreed to assume all the deposits, including the brokered deposits, for a premium of 1.7 percent. In addition to assuming all of the failed bank’s deposits, Prosperity Bank will purchase approximately $850 million of assets. The FDIC will retain the remaining assets for later disposition.
It is quite amazing how many regional banks and mortgage lendors continue to go under. I will do my best to compile a list of all the lendors facing bankruptcy or have been shut down or bought out completely. This mortgage crisis is definitely the worst that the United States of America has seen in it’s history. I don’t think ole Ben (Franklin) would be happy about this; no pun intended.
With banks now in a much better position people are willing to spend more on credit. When looking for a Samsung LCD TV on sale some will seek options from HHGregg, Best Buy, WalMart and Sears. Note that Amazon.com has truly changed retail over the last few years as they will allow customers to buy a TV and have it shipped for basically free. Banks getting more cash flow from credit card and debit card purchases has helped the FDIC not shut as many down lately.
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November 7th, 2008 @ 10:13 pm
[...] Franklin Bank, SSB, Houston, Texas, was closed today by the Texas Department of Savings and Mortgage Lending, and the Federal Deposit Insurance Corporation (FDIC) was named receiver. To protect the depositors, the FDIC entered into a … Read more [...]
November 7th, 2008 @ 11:27 pm
[...] Go here to see the original: Franklin Bank Closed by the FDIC [...]