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Thursday, January 29, 2009

Regulator to Bank: Find Buyer or Else

by Calculated Risk on 1/29/2009 01:56:00 PM

We rarely get advance notice for Bank Failure Friday, but this might be one ...

From the Baltimore Sun: Suburban Federal Savings Bank told to sell

Federal banking regulators have told Crofton-based Suburban Federal Savings Bank that it must be sold by Friday or face a possible government takeover.

The 53-year-old thrift has been trying to recover from losses on soured real-estate loans. In documents filed last week, the Office of Thrift Supervision ordered Suburban to merge with another institution or accept "appointment of a conservator or receiver."

If Suburban were to be seized, it would be the first bank to fail in Maryland since 1992, the tail end of the savings and loan crisis.

Suburban, which has seven branches and about $354 million in assets, was supposed to submit a binding merger agreement to the OTS by last Friday, but neither the regulator nor Suburban officials would say yesterday whether a plan was submitted.