Private-Equity Group Buys Three Banks as U.S. Failures Hit 96

GREETINGS,

Private-Equity Group Buys Three Banks as U.S. Failures Hit 96

July 17 (Bloomberg) — North American Financial Holdings Inc., run by former Bank of America Corp. investment-banking head Gene Taylor, bought three lenders as U.S. failures this year rose to 96.

North American, based in Charlotte, North Carolina, purchased two failed banks in Florida and one in South Carolina, according to statements posted yesterday on the Federal Deposit Insurance Corp.’s website. Three other banks were seized, including one in Michigan, costing the FDIC’s deposit-insurance fund a total of $334.8 million.

North American is one of two groups backed by private investors that have purchased failed banks through the FDIC’s resolution process this year. Through June, the FDIC had awarded only three of 86 failed banks to private investors. All three were purchased by Premier American Bank, backed by Bond Street Holdings LLC.

Regulators may close the most banks this year since 1992 as souring residential and commercial mortgages impair capital levels. The FDIC included 775 banks with $431 billion in assets on the confidential list of problem lenders as of March 31, an increase from 702 banks with $402.8 billion at the end of the fourth quarter. FDIC Chairman Sheila Bair has said 2010 failures will surpass last year’s total of 140……HERE IS MORE

Click here for reuse options!
Copyright 2010 Hiram's 1555 Blog