FDIC Throws in the Towel on Silverton Bank

The Federal Deposit Insurance Corp. [FDIC] has given up attempts to sell Atlanta-based Silverton bank that the government entity took over on May 1 with the intention of finding another business to take it over.

“We created a marketing effort to try and get someone to buy Silverton, but we were unsuccessful in doing that,” [FDIC spokesman David Barr told CNNMoney.com on Friday.] “We received one bid over the weekend and it was not sufficient.”

The government will maintain a bridge bank it established in May until at least July 29, to allow clients time to make the transition…

“The only option now is to slowly wind down the affairs at Silverton and allow time for those other banks to transition over,” said Barr. “We’re doing this transition phase to lessen any impact on the banking industry and the client banks of Silverton.”

Barr said the bridge bank will be extended past July 29 if necessary.

Silverton, which conducted business with about 1,400 community banks in 44 states, was different from the 30-plus other banks that have failed this year, notes CNNMoney, because it did not take deposits from or make loans to customers. Instead, Silverton was a business-to-business bank, only dealing with other banks.

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