Feds Seize The Silverton, The Nation's Largest Bank of Banks

This story was under reported yesterday, but bears consideration today as to the scope of this economic collapse. There are no signs the economy is improving or that we are through this economic downturn. Such stories make me sick. There are many minimalists out there telling us that everything is getting better. Nothing is improving that I can see.

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Feds Seize The Silverton, The Nation's Largest Bank of Banks

John Carney | May. 1, 2009, 4:32 PM

This afternoon Federal banking authorities seized Silverton Bank, the Atlanta-based bank for banks. The troubled bank had already been subject to government censure, prohibited from paying dividends, paying interest on its debt or issuing new debt without prior consent from the Federal Reserve.

The seizure is bad news for Silverton's shareholder base, comprised entirely of its customer banks. More than 1,500 banks across the country are Silverton customers, and 400 hundred of those are shareholders. The bank provides banks, especially community banks, with credit lines and other back-office services. It is the largest bankers' bank in the country.

Silverton had more than $4.1 billion in assets, making it the fifth largest bank to fail since the financial crisis began last year. The FDIC says the seizure could require as much as $1.3 billion from its insurance fund.

More:

http://www.businessinsider.com/feds-seize-atlantas-silverton-bank-2009-5<