DamnYankee
No Neg Policy
- Apr 2, 2009
- 4,516
- 441
- 48
The end draws nigh for Guaranty Bank
Just how much trouble is Guaranty Bank in? Well, it's not often that a bank announces that it's on the brink of failure. But that's just what Austin, Texas-based Guaranty did on July 23. With losses mounting and little prospect of raising more capital to offset them, it reported in a regulatory filing that it probably "will not be able to continue as a going concern."
With $14.4 billion in assets, Guaranty will be the biggest bank to fail this year when regulators seize it. Even the board of its parent company, Guaranty Financial Group (GFG), recognizes that it's probably just a matter of time. It has warned investors that a government takeover is likely and has already voted to allow the bank's overseers in Washington to step in and shut it down.
cont'd
Just how much trouble is Guaranty Bank in? Well, it's not often that a bank announces that it's on the brink of failure. But that's just what Austin, Texas-based Guaranty did on July 23. With losses mounting and little prospect of raising more capital to offset them, it reported in a regulatory filing that it probably "will not be able to continue as a going concern."
With $14.4 billion in assets, Guaranty will be the biggest bank to fail this year when regulators seize it. Even the board of its parent company, Guaranty Financial Group (GFG), recognizes that it's probably just a matter of time. It has warned investors that a government takeover is likely and has already voted to allow the bank's overseers in Washington to step in and shut it down.
cont'd
