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:
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