ATLANTA – The FDIC opted Friday to liquidate the corporate credit union-like Silverton Bank, rather than sell the failed bankers’ bank to a group of private equity firms.
The FDIC sent a letter to the correspondent bank’s 1,400 bank members in 44 states telling them it had closed the institution.
The decision to close the institution came after the collapse of talks to sell it to four buyout firms, led by the Carlyle Group, part of a growing effort by private investors to acquire troubled or failed institutions in the once-off-limits banking sector. In recent months private equity firms have acquired failed institutions like IndyMac and BankUnited Financial, Florida’s largest regional bank.
Carlyle participated in the winning bid for BankUnited. Its partners in the Silverton bid were Lightyear Capital, Harvest Partners and Colony Capital.
