Bankruptcy

Omni National Bank Becomes 10th Georgia Bank Failure

By Scott Riddle

Omni National Bank was seized by the FDIC today, becoming the tenth Georgia bank failure in the last few months. Click here for NASDAQ announcement. 

From the Atlanta Business Chronicle -

The Federal Deposit Insurance Corp. has taken over as receiver for Atlanta-based Omni National Bank, which was battered by rising losses stemming from souring real estate loans.

The Office of the Comptroller of the Currency (OCC) on Friday made the announcement, saying the $980 million-asset bank had 'experienced substantial dissipation of assets and earnings' because of 'unsafe and unsound' practices. OCC also said the bank 'incurred losses that have depleted most of its capital, and there is no reasonable prospect that the bank will become adequately capitalized without federal assistance.'

Full post as published by Georgia Bankruptcy Blog on March 27, 2009 (boomark / email).