Guaranty Bank Agrees To Be Taken Over By Feds
Longview, TX — In a move that has yet to take place Guaranty Bank, with 160 branches in California and Texas, has agreed to be taken over by the Feds.
According to the Longview, TX News-Journal, “In a filing Friday with the U.S. Securities and Exchange Commission, Austin-based Guaranty Financial Group, the bank’s parent company, said it probably can’t continue as a going concern and is looking for a potential buyer.
According to the Austin company, the bank is “critically undercapitalized” after recent write-downs related to its mortgage-backed securities portfolio. Guaranty’s primary shareholders are unwilling to inject additional capital, the company said.
Officials said the Longview, TX and other branches are expected to remain open and conduct business. Guaranty Bank has branches in Sonora (Junction Shopping Center), Angels Camp, Jackson, Oakdale and Escalon).
Guaranty could end up as the largest U.S. bank failure of the year. Guaranty Bank’s board continues to operate, but the federal Office of Thrift Supervision “is exercising a significant degree of control over what had heretofore been the functions of the board,” Guaranty Financial said in the filing.
Guaranty Bank’s customer deposits remain fully insured up to Federal Deposit Insurance Corp. limits, the bank and regulators say. The FDIC’s standard insurance amount is $250,000 per depositor.
Written by bill.johnson@mlode.com
