Guaranty Financial Goes Spanish
In a perfect example of regulators with their hands tied, Guaranty Financial should have been put out of its misery quite some time ago and yet limped along as long as it could take the threats. Regulators knew the company could not continue, and though it should have been seized and shut down, surely the FDIC knew it couldn't take a blow as big as Guaranty.
At last, Sheila Bair can get some sleep. Until the next huge failure, that is. I wonder if she's slept at all in the last several weeks?
SF Business Times:
Federal banking regulators have told bidders that a winner was selected for Guaranty Financial Group Inc. (GFG), the Wall Street Journal reported Wednesday.
The winner was not disclosed, but is believed to be Banco Bilbao Vizcaya Argentaria SA. It’s Spain’s second-largest bank based on stock-market value. The purchase would build on BBVA’s U.S. presence that includes the $9.6 billion purchase of Compass Bancshares Inc., of Birmingham, Ala., in 2007.
Austin-based Guaranty Bank operates branches in Texas and California, including several in the Bay Area.
John Wessman, executive vice president at Guaranty, said in a statement, “We are open for business. We continue to work with our regulators. We are focused on providing the best customer service possible and believe we can avoid any disruptions to our customers. As a member of the FDIC, Guaranty depositors enjoy the same coverage as customers of other FDIC member banks.”
I love that "member of the FDIC" dig at the end. Does that line still work?
Now that Colonial is BB&T's problem now, and Guaranty has been pimped off to Spain's BBVA, what happens to Affinity?
It's almost too much to watch.