What will happen to Guaranty Bank Customers?
POSTED: Sunday, July 26, 2009 - 5:19pm
UPDATED: Thursday, April 8, 2010 - 2:40am
TYLER - The second largest bank in Texas is a step closer to federal takeover.
Since Guaranty Bank filed regulatory papers declaring major losses Thursday, several viewers have called our newsroom worried about what will happen to their money if the bank does indeed fail.
The financial group has announced it will most likely fail after loan losses and write-downs left it "critically short of capital."
If it does go under, it would be the largest U.S. bank to collapse this year.
According to the company's website, the Austin-based lender has about 16 billion dollars of assets and more than 150 branches in Texas and California.
With dozens of those branches right here in East Texas, many bank customers are worried about what will happen to their money if the bank does indeed fail.
Even though nothing has been set in stone, Guaranty Bank officials say its board will allow for the federal deposit insurance corporation, also known as F.D.I.C. to be the receiver or conservator if the bank fails.
In the banks regulatory papers which were filed Thursday, it clearly states that "all customer deposits remain fully insured to the highest limits set by the F.D.I.C."
So how much are we talking?
A cool $250,000 dollars per account holder.
Experts say its situations like these that the F.D.I.C. was set up in the first place.
In its history, no customers has even lost a single penny of insured deposits.
So rest assured, if you're a Guaranty Bank customers, your money isn't going anywhere.