Bank Failure Caused by Fraud: Regulator
WASHINGTON ( TheStreet) -- La Coste National Bank in Texas failed Friday due to "fraudulent activity," an Office of the Comptroller of the Currency official told TheStreet.
La Coste National Bank, with only $54 million in total assets, appeared to be in fairly strong shape, according to its Dec. 31 regulatory financial reports, which made its seizure Friday unusual. The bank was well-capitalized per regulatory guidelines and had remained profitable through 2009 with minimal loan losses and strong year-end asset quality.
While the OCC was unable to provide any additional information, a spokesman for the Federal Bureau of Investigation's San Antonio field office told TheStreet that bureau and the Federal Deposit Insurance Corp.'s Office of the Inspector General are investigating the matter.
La Coste National Bank was one of four bank failures on Friday, along with Marco Community Bank of Marco Island, Fla., La Jolla Bank of La Jolla, Calif. and George Washington Savings Bank of Orland Park, Ill., which was acquired by FirstMerit Corp. (FMER).A total of 20 banks and thrifts have failed so far this year. All 185 bank failures since the beginning of 2008 are detailed on TheStreet.com's interactive bank failure map:
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV