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FDIC to lose $635.6 billion in Advanta Bank failure
Baltimore News.Net
Friday 19th March, 2010
Headquartered in Draper, Utah, Advanta Bank Corp., was an industrial bank.
On Friday the Federal Deposit Insurance Corp. (FDIC) approved the payout of the insured deposits of the bank after it was closed by the Utah Department of Financial Institutions, which appointed the FDIC as receiver.
The FDIC was unable to find another financial institution to take over the banking operations of Advanta Bank Corp. As a result, checks to depositors for their insured funds will be mailed on Monday. Brokered deposits will be wired once brokers provide the FDIC with the necessary documents to determine if any of their clients exceed the insurance limits, the FDIC said Friday. Customers who placed deposits with brokers should contact the brokers directly for more information about the status of their funds, the statement said.
As of December 31, 2009, Advanta Bank Corp., which was founded in 1995, had approximately $1.6 billion in total assets and $1.5 billion in total deposits. At the time of closing, the bank had an estimated $247,000 in uninsured funds. This amount is an estimate that is likely to change once the FDIC obtains additional information from the bank's customers.
The FDIC estimates the cost of the failure to its Deposit Insurance Fund to be approximately $635.6 million.
Beginning on Monday, customers of Advanta Bank Corp. with deposits exceeding $250,000 at the bank may visit the FDIC's Web page "Is My Account Fully Insured?" at https://www2.fdic.gov/drrip/afi/index.asp.
Advanta Bank Corp. is the third bank in Utah to be shut down in recent times. The last bank closed was the Centennial Bank, in Ogden, which was closed on March 5, 2010.  Email this story to a friend
Comments on this story
mruskyu
03-19-10, 10:19 PM |
Advanta Bank Corp third to fail in Utah this year
million not billion
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Anonymous
03-22-10, 02:37 PM |
Change the title
The FDIC loss will be in the millions, not the billions!
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