by Bill McBride on 7/06/2012 08:49:00 PM
Friday, July 06, 2012
As of March 31, 2012, Montgomery Bank & Trust had approximately $173.6 million in total assets and $164.4 million in total deposits. ... The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $75.2 million. Compared to other alternatives, Ameris Bank's acquisition was the least costly resolution for the FDIC's DIF. Montgomery Bank & Trust is the 32nd FDIC-insured institution to fail in the nation this year, and the sixth in Georgia.That is a pretty high loss rate!
Update: From Bill Dawers at the Peach Pundit:
Some folks might have seen this closure coming. From the AJC a couple days ago:Earlier on employment:The Securities and Exchange Commission said Monday it has received a federal court order to freeze the assets of Aubrey Lee Price, and several associated businesses.
In a 22-page letter to investors, Price allegedly admitted he made false statements to conceal losses of $20 million to $23 million.
Regulators said Price told clients he was investing their money in traditional stocks, but he also put money into “illiquid” bets including South American real estate and shares of Montgomery Bank & Trust.
William P. Hicks, associate director of the SEC in Atlanta, said Price “made woeful financial transactions” that he hid from his investors.
“Now both the money and Price are missing,” Hicks said.
• June Employment Report: 80,000 Jobs, 8.2% Unemployment Rate
• Employment: Another Weak Report (more graphs)
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Posted by Bill McBride on 7/06/2012 08:49:00 PM