Thursday, August 07, 2008

SilverState Bank - FDIC Seizure in the works?

Take a look at SilverState Bancorp's Stock price: Yes, this is a picture of a failing bank - The same bank where Andrew McCain (son of presidential candidate John McCain) served as a director and as a member of the bank's Audit Committee until he abruptly resigned (for personal reason of course) in late July: My 28 July SilverState Post

Weekly Chart

Daily Chart

To paraphrase comments from my July 28th post: a banking failure under son McCain's leadership would probably look quite bad for dear old dad's campaign and I imagine the FDIC, working disaster/cleanup plans for the bank decided it's probably time for Andrew to get out of the picture before the bomb goes off.

Well, If you've been paying attention to recent banking failures, you probably already know the FDIC has been seizing banks at the close of business Friday evenings -- in the hopes of keeping depositors calm and avoiding banking runs.

Guess what? Tomorrow is Friday, and based on recent stock price action, I don't think a FDIC seizure for SilverState Bank is out of the question.




Patrick said...

Deutsche Bank to Foreclose on $3.5 Billion Casino

(Bloomberg) -- Deutsche Bank AG will foreclose on the $3.5 billion Cosmopolitan Resort & Casino in Las Vegas after developer Ian Bruce Eichner defaulted on a $760 million loan, two people briefed on the situation said.

Anonymous said...

Silver State Bank remains open for business and is conducting business as usual. The bank is adequately capitalized according the the regulators and recently announced nearly $10 million in SBA loans.

Randy said...

Thanks Patrick -- good to know.

Anon 5:40:

I'm sure they are doing just fine. That why they recently had to report a $67M loss and replaced several key officials: Silverstate reports $62.7 million loss, replaces key officials

Silver State's nonperforming assets, which include bad loans, were 83 percent larger than the total of reserves it set aside for problem loans plus its tangible equity or ownership interest in the company.

The company has been trying to raise $40 million in additional capital since June 5. It has been difficult to raise capital, because "all of the capital raised in the first quarter (for commercial and investment banks) is under water," Threet said. -- to increase deposits, the bank recently offered 4.25 percent on some certificates of deposit.

Silver State Bank: What’s Deposited in Vegas Doesn’t Stay in Vegas

Closing: I'm not suggesting they ABSOLUTELY WILL be taken over by the FDIC this weekend, but if it did happen, I wouldn't be surprised one bit - it's merely just a matter of time.

jerry said...

Andrew McCain has been raised with a Silver spoon feeding him wealth without ever having to make his way in a world where he is not favored! He was director of Choice Bank that merged last April with Silver State Bank. I bet the depositors are yelling OOPS on that move. Also, he is v.p. and CFO of Henley and Company, the nation's largest beer distributor. Now, who is Henley? That would be his stepmommy. Andrew is nothing more than another Neil Bush! It is so clear that Johnny Boy is nothing more than another Georgie Boy. Have we had enough of these political royalists running the country?