Dakin Campbell and Sarah Frier
June 26, 2010
Regulators closed banks in Florida, Georgia and New Mexico, awarding a third financial institution to Bond Street Holdings LLC, an investment firm that first bought banks in January.
Bond Street’s Premier American Bank purchased Englewood, Florida-based Peninsula Bank, according to a statement on the Federal Deposit Insurance Corp.’s website. Yesterday’s three failures cost the agency’s deposit-insurance fund $284.6 million.
“The FDIC’s preference is for an orderly resolution of institutions that are in trouble,” said Walter J. Mix III, a managing director at Emeryville, California-based LECG LLC, a financial services advisory company, and a former commissioner of the California Department of Financial Institutions. “With the emerging commercial real estate problems and the continuing home loan problems there will be many more banks that fail.”
The FDIC has now closed 86 banks this year and is on pace to exceed last year’s total of 140, which was the most bank closings since 1992 as lenders across the country buckle under the weight of soured real-estate loans. The failures will drain $60 billion over the next three-and-a-half years from the FDIC’s fund, the agency said June 22. The fund dipped into deficit in the third quarter.
The Peninsula acquisition is the third this year for Bond Street, a Naples, Florida-based investment firm that was the first to use a regulatory shelf charter, which gave it advance approval to purchase failed lenders. Bond Street bought two banks in January.
This article was posted: Saturday, June 26, 2010 at 3:53 am