FDIC Shuts Down Silverton Bank in USA
JUNE 5, 2009 - The Wall Street Journal -
The Federal Deposit Insurance Corp. has shut down Silverton Bank, the failed
Atlanta "bank of banks," instead of
selling it to private-equity investors, according to a person familiar with the
situation.
An FDIC spokesman didn't immediately return a call and email for comment.
A consortium including Carlyle Group had been in discussions with federal
regulators about a deal. Its failure to
reach one illustrates the perils of distressed bank investing.
In addition to Carlyle, the group included private-equity investors Lightyear
Capital, Harvest Partners and Colony
Capital.
Last month, Carlyle along with three other private-equity firms acquired the
banking operations of Florida's
BankUnited Financial Corp. from federal regulators. That transaction seemed to
demonstrate the government's
willingness to sell banks to private-equity firms. But regulatory hurdles and
restrictions on ownership are still
making it difficult to get these deals done.
Silverton provides services to other banks and doesn't take consumer deposits.
After seizing the bank on May 1,
regulators created a "bridge bank" to operate Silverton while it looked for a
buyer. The same happened with IndyMac
Bank, Pasadena, Calif., which the FDIC sold to a group of investors earlier
this year.
