The Office of Thrift Supervision (OTS) closed Cleveland, OH-based, $12 billion-asset AmTrust Bank on Friday and appointed the Federal Deposit Insurance Corp. (FDIC) receiver. The FDIC entered into a purchase and assumption agreement with Westbury, NY-based, $31 billion-asset New York Community Bank (NYCB) whereby NYCB agreed to assume AmTrust’s $8 billion in deposits and purchase $9 billion of its assets through a loss-share agreement with the FDIC on $6 billion of those assets. The FDIC will dispose of the remaining $3 billion in assets and estimates the cost to the Deposit Insurance Fund will reach $2 billion. AmTrust Bank is the second bank in Ohio to fail this year. Three Georgia banks, one Illinois bank and one Virginia bank also failed on Friday, bringing the total number of bank failures this year to 130.
Sunday, December 13, 2009
AMTRUST BANK IN OHIO CLOSED AND SOLD TO NEW YORK COMMUNITY BANK
The Office of Thrift Supervision (OTS) closed Cleveland, OH-based, $12 billion-asset AmTrust Bank on Friday and appointed the Federal Deposit Insurance Corp. (FDIC) receiver. The FDIC entered into a purchase and assumption agreement with Westbury, NY-based, $31 billion-asset New York Community Bank (NYCB) whereby NYCB agreed to assume AmTrust’s $8 billion in deposits and purchase $9 billion of its assets through a loss-share agreement with the FDIC on $6 billion of those assets. The FDIC will dispose of the remaining $3 billion in assets and estimates the cost to the Deposit Insurance Fund will reach $2 billion. AmTrust Bank is the second bank in Ohio to fail this year. Three Georgia banks, one Illinois bank and one Virginia bank also failed on Friday, bringing the total number of bank failures this year to 130.
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