In the second-largest US bank failure this year, US regulators shut down Guaranty Bank, a lender felled by losses on loans to homebuilders and borrowers. However, it is said that Guaranty''s failure, along with those of three banks in Georgia and Alabama bringing to 81 the number of US bank failures in 2009.
Additionally, the Federal Deposit Insurance Corp. detained Guaranty Bank, with about $13 billion in assets and $12 billion in deposits while it sold all of its deposits and $12 billion of the assets to BBVA Compass, the US division of Banco Bilbao Vizcaya Argentaria SA. In addition, the FDIC agreed to share losses with BBVA on about $11 billion of Guaranty Bank''s assets.
Moreover, the crumple of Guaranty Bank, whose parent company was Guaranty Financial Group Inc., was the 10th-largest bank failure in US history and is expected to cost the deposit insurance fund an estimated $3 billion while the bank with 162 branches in Texas and California, also suffered losses on mortgage-linked securities it bought from other banks.
Additionally, the Federal Deposit Insurance Corp. detained Guaranty Bank, with about $13 billion in assets and $12 billion in deposits while it sold all of its deposits and $12 billion of the assets to BBVA Compass, the US division of Banco Bilbao Vizcaya Argentaria SA. In addition, the FDIC agreed to share losses with BBVA on about $11 billion of Guaranty Bank''s assets.
Moreover, the crumple of Guaranty Bank, whose parent company was Guaranty Financial Group Inc., was the 10th-largest bank failure in US history and is expected to cost the deposit insurance fund an estimated $3 billion while the bank with 162 branches in Texas and California, also suffered losses on mortgage-linked securities it bought from other banks.
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