Hi guys! school has started and I am sorry for becoming irregular in my posts but unfortunately, my first post after this break is not quite heartening, to be honest.
Guaranty Bank has become the second-largest U.S. bank to fail this year aftr the Texas lender was shut down by regulators and most of its operation sold at a loss of billions of dollars for the U.S. government to a major Spanish bank.
The bank failure, the 10th largest in U.S. history, is expected to cost the deposit insurance fund an estimated $3 billion.
Guaranty Bank, with 162 branches in Texas and California, saw its investmens in real estate lending and mortgage-backed securities bought from other banks sour and had been teetering near collapse for weeks. Its parent, Guaranty Financial Group Inc., reaffirmed Monday in a regulatory filing that the company was critically short of capital and didn't believe it could stay in business.
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