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Article: $388 million hit to DIF expected after bank closings
- Article from:
- Northwestern Financial Review
- Article date:
- August 1, 2009
- Author:
CopyrightCopyright NFR Communications Inc Aug 1-Aug 14, 2009. Provided by ProQuest LLC. (Hide copyright information)
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BankFirst, Sioux Falls, S.D., Bank of Wyoming, Thermopolis, and six of nine banks owned by the Founders Group of Worth, Ill., were placed in Federal Deposit Insurance Corporation receivership last month, after state and national regulators closed the institutions in July.
Roger Novotny, director of the South Dakota Division of Banking, closed BankFirst on July 17, citing a "business model that was predominantly centered on the origination of largecomplex commercial, construction, development, and multi-family residential loans." The loans were concentrated in "high growth metropolitan or urban areas nationwide," and "as loan losses multiplied, the bank's capital declined to an unsafe level. ...