Franklin Bank closed, 18th failure this year
By John Letzing, MarketWatch
Last update: 7:41 p.m. EST Nov. 7, 2008
SAN FRANCISCO (MarketWatch) -- Houston-based Franklin Bank S.S.B. was closed by regulators Friday, the 18th bank failure this year amid the ongoing credit crisis.
The Federal Deposit Insurance Corporation said in a statement that Franklin Bank had total assets of $5.1 billion as of Sept. 30 and $3.7 billion in total deposits.
El Campo, Texas-based Prosperity Bank will assume Franklin Bank's deposits for a premium of 1.7%, and Franklin's 46 offices will reopen as Prosperity branches, the FDIC said.
In addition, Prosperity Bank will purchase roughly $850 million of Franklin Bank's assets, according to the regulator.
The FDIC estimated that Franklin Bank's failure will cost its Deposit Insurance Fund between $1.4 billion and $1.6 billion.
Shares of Franklin Bank slid more than 80% lower in after-hours trading, to $0.04 cents.
John Letzing is a MarketWatch reporter based in San Francisco.
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