The Federal Deposit Insurance Corp (FDIC), a government entity that insures thousands of banks nationwide, said that it is giving up on Atlanta-based Silverton Bank. Earlier in May, it made an unsuccessful attempt to find a buyer, before the bank was taken over.
David Barr, Spokesman at FDIC, said: “We created a marketing effort to try and get someone to buy Silverton, but we were unsuccessful in doing that. We received one bid over the weekend and it was not sufficient.”
“The only option now is to slowly wind down the affairs at Silverton and allow time for those other banks to transition over. We’re doing this transition phase to lessen any impact on the banking industry and the client banks of Silverton,” he added.
Andrew Gray, Spokesman at Silverton, said: “Silverton had initiated a marketing effort that was allowed to continue until a whole bank acquisition was no longer feasible and Silverton will be sold in parts.”
The failure of Silverton was different from other banks that have failed this year, as it did not take deposits from or makes loans to customers. It was a business-to-business bank, only dealing with 1,400 community banks in 44 states.
