SAN FRANCISCO (MarketWatch) - Guaranty Financial Group, one of the largest banks based in Texas, is close to collapse after suffering almost $1.5 billion in mortgage write-downs, according to a regulatory filing by the company on Friday. Guaranty Financial said it wrote down the value of some of its mortgage-backed security holdings by $1.45 billion, while taking a goodwill charge of $107 million. That left it with negative capital at the end of March, according to the filing late Thursday. Guaranty had been trying to raise new capital with the help of the Federal Deposit Insurance Corp. and the Office of Thrift Supervision, but the losses have scuppered those plans. "The company believes that it is probable that it will not be able to continue as a going concern," Guaranty said in its Thursday filing. Guaranty's board of directors agreed to allow the FDIC to take over its banking subsidiary, Guaranty Bank, as a receiver or conservator, the company explained. However, that hasn't happened yet, it added. http://www.marketwatch.com/story/guaranty-financial-big-texas-bank-on-the-ropes-2009-07-24
WOULD only be the LARGEST bank to fail in 2009. Another 700 jobs gone...... Guaranty Financial operates Guaranty Bank, which operates more than 160 branches in Texas and California. The company employs about 700 workers in Austin. If it were to fail, Guaranty would be the largest U.S. bank to do so in 2009, Reuters reported.
Everything's bigger in Texas. Watch them take that mofo down at 4:01. "Relax, bank customers, the FDIC is here, and you have nothing to fear; your money is perfectly safe." Hey, isn't that what DeNiro says during the big Manhattan bank robbery scene in 'Heat?' <object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/E1RRu1DRtXg&color1=0xb1b1b1&color2=0xcfcfcf&hl=en&feature=player_embedded&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowScriptAccess" value="always"></param><embed src="http://www.youtube.com/v/E1RRu1DRtXg&color1=0xb1b1b1&color2=0xcfcfcf&hl=en&feature=player_embedded&fs=1" type="application/x-shockwave-flash" allowfullscreen="true" allowScriptAccess="always" width="425" height="344"></embed></object>
They suck. I'm local and they've always struck me as a mickey mouse operation. Nothing concrete to support that, just my perception from their facilities, advertising and minimum wage recruiting efforts for practically every position. Any bank job on monster or wherever under $20k/year salary is probably guaranty bank.