Bank Failure: Silver State Bank, Henderson, Nevada
Submitted by
CalculatedRisk on Fri, 09/05/2008 - 5:15pm (30 comments)
in
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First! Called it! Locked it! Stamped it!
(btw, thanks for the Friday night music Misean)
Will they settle for the extra point or go for two?
How much time is left on the game clock?
Was Silver State the one that McCain Jr. resigned from a few weeks back?
Rats, 3rd.
Err, 5th.
You may all recall my post some weeks ago where I bought a Silver State CD, but had it "unbought" some days later....so it appears the other shoe has dropped.
Dingojoe...apparently so.
Jayne Lyn Stahl: Andrew McCain Resigns from Silver State Bank
Pfft ... a mere minnow of a bank.
Yep, dingojoe, that's the one:
Silver State Bancorp Announces Director Resignation
| Reuters
McCain got out with barely a month to spare.
Totally lacking all the sunny goodness and creamy satisfaction of a big California institution.
So I guess this means the beautiful people (McCain) get advanced warning to get out, eh? Did he have shares in the bank, and did he have a chance to sell them over the past few weeks????
MarkS writes:
Pfft ... a mere minnow of a bank.
MarkS | 09.05.08 - 9:29 pm | #
Anything above $1-2B is taxing on FDIC's bank closing and other support staff which is already stretched to the limit and exhausted excluding the DC staff of course which rarely participates on bank closings viewing it as beneath them.
It was McCain's son, Andrew, according to the referenced article...
So the CDs (like the one I bought and then got unpurchased) are going where, exactly?...onto the FDIC? Does that mean Nevada State Bank didn't want to take on th e biggest interest rate paying (moral hazard) CDs, or ____?
Ah! Now it feels like Friday.
And come on, bank failures never hurt the Bushes, why should they hurt the McCains?
It is remotely possible that the junior McC figured it out himself and left. . . Nah.
It must be nice to be a member of the pampered aristocracy.
Damn, that was my favorite bank.
SSBX Insider Trading - Silver State Bancorp - Form 4 SEC Filings
Only goes up to march...we'll have to check back after the elections to see if Andrew is an honest dude, or not.
lurker here...I just gave you a nice hat tip over at RawStory.
You guys rock
from the WSJ:
If Mr. McCain had remained on Silver State's board another four days, his position on the audit committee would have required him to sign off on the company's second-quarter financial statements.
Three weeks after Mr. McCain quit, Silver State had to revise those second-quarter numbers to reflect a loss of $72.3 million, which was larger than previously reported. It warned in the Aug. 15 regulatory filing of "uncertainty about the company's ability to continue as a going concern," a sign the bank's survival was in doubt.
Silver State said at the time its insurance carrier planned to cancel policies protecting Silver State's directors and executives from liability due to the bank's elevated risk profile, effective Oct. 7.
Mr. McCain's public role in his father's presidential campaign has been mostly limited to appearances at several events last month. A person close to Mr. McCain says he left Silver State's board because his busy schedule meant he wouldn't be able to devote enough time to the struggling bank.
Mr. McCain was a quiet presence on Choice's board, say former associates. He would occasionally ask executives about how the bank's loan portfolios were holding up, but rarely pressed for details.
William Robert, a co-founder of Choice, says Mr. McCain didn't play an active role on the boards of either Choice or Silver State. "He got on [the Silver State] board, he looked around, and he decided he shouldn't be on it," Mr. Robert said. "There's nothing suspicious here."
I remember this bank. When I started off as a teacher in Las Vegas (2006), the administration tried to direct us to sign up with this bank. They presented it to us as if it were a teachers credit union. Very shady.
again the fdic retains the bulk of the assets. bailout bair claimed this week that the fdic will not need any assistance. given that they are not passing any assets in these transactions, the cash drain will continue. should they not be able to pass a bunch of assets once IMB is sold; their cash on hand is gone and they will need to start selling their treasury portfolio, borrow from the financing bank, or tap the treasury line.
selling treasuries will reduce income going forward, which will put more burden on the banking industry to recapitalize the fund. part of the restoration plan is calling for banks with "significant" FHLB borrowings to pay higher assessments. strange, the primary source of liquidity in this crisis will be decentivized. wonder where the fdic thinks banks will go for liquidity? wonder if they will treat Fed discount window borrowings in a similar manner?
is there any reports on banking management walk outs yet?
Dear, Sheila, due to increasing hardship in manipulating our last accounting data & figuring out the worthlessness of our assets, we decided to walk out.
Best Regards, VP of Operations at Local Savings Inc.
And it was not the worst rated in Nevada:
http://www.thestreet.com/tsc/ratings/pdfdata/WEBRATS/B/FREECSU_1E39C48C-BE6E-4033-9439-A34EE6D9B0B3.PDF
It was rated D while others were D- and E+ and E. Of course this rating is as of March 31st. Things may have deteriorated fast since then.
I do hope the Democrats make something of the McCain connection. I sure do.
FDIC Bank Foreclosure Streak: Batting .667 on Fridays
"After a cold streak in early August where it missed closing banks two Fridays in a row, the Federal Deposit Insurance Corporation is en fuego. It has closed U.S. banks three of the last three Friday nights, including tonight's announcement that Silver State Bank (SSBX) of Henderson, NV, joins the list. If you go all the way back to July 11th of this year, the Fed has closed banks on 6 of the last 9 Fridays. That works out to a 0.667 failed-bank batting average, which is darn respectable. Now that the FDIC has started hitting for average rather than going only for homeruns -- we haven't had another multi-billion dollar IndyMac -- I'm expecting the FDIC can keep this hitting pace up for some time. Go guys, go."
FDIC Bank Foreclosure Streak: Batting .667 on Fridays -- Seeking Alpha
The likely reason(s) this bank jumped to the head of the closing line was to eliminate future bank director liability which ends when a bank fails. It also reduced media attention after a week or two. It's just DC politics. Move on.
McCain's son was director of a bank acquired in the recent past by Silver State Bank. His participation on the Board at Silver State was only for a few months in the first place.
There is no story here, although the media will try to make much of it.