Feds close Douglass National Bank
The Office of the Comptroller of the Currency closed Douglass National Bank on Friday and named the Federal Deposit Insurance Corp. as receiver. In a release Friday, the FDIC said that all of Kansas City-based Douglass' deposit accounts were transferred to Liberty Bank and Trust Co., based in New Orleans, and will be available as usual. Douglass had $58.5 million in assets and $53.8 million in deposits on Oct. 22. The FDIC said that the transaction was the least costly option and estimated that the transaction's cost to its Deposit Insurance Fund is about $5.6 million.
Separately on Friday, Douglass reported that it had lost $1.3 million in the fourth quarter of 2007. During the first nine months of 2007, Douglass lost $1.1 million. The 25-year-old bank -- the only one in metropolitan Kansas City owned by African-Americans -- lost $4.2 million in 2006. Bank assets shrank by 10 percent, or $5.7 million, during the most recent quarter to $52.5 million.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20080126&id=8095611
The Office of the Comptroller of the Currency closed Douglass National Bank on Friday and named the Federal Deposit Insurance Corp. as receiver. In a release Friday, the FDIC said that all of Kansas City-based Douglass' deposit accounts were transferred to Liberty Bank and Trust Co., based in New Orleans, and will be available as usual. Douglass had $58.5 million in assets and $53.8 million in deposits on Oct. 22. The FDIC said that the transaction was the least costly option and estimated that the transaction's cost to its Deposit Insurance Fund is about $5.6 million.
Separately on Friday, Douglass reported that it had lost $1.3 million in the fourth quarter of 2007. During the first nine months of 2007, Douglass lost $1.1 million. The 25-year-old bank -- the only one in metropolitan Kansas City owned by African-Americans -- lost $4.2 million in 2006. Bank assets shrank by 10 percent, or $5.7 million, during the most recent quarter to $52.5 million.
http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=ACBJ&date=20080126&id=8095611