US Regulators Close Yet Another Bank in the Second Bank Crash of 2024, Only Two Months Into the Year
Authorities put a stop to a bank located in Oklahoma which now makes the second US deposit institution to fail this year, and it is still only February.
According to the Office of the Comptroller of the Currency, it has closed down the First National Bank of Lindsay.
According to the agency, false and misleading banking records among other records were also submitted on behalf of the bank capital which triggered the need for action to avoid further deterioration of the bank capital.
âThe OCC also determined the bank was in a deteriorating condition to conduct transactions; a lack of sufficiency in the bankâs assets over its liabilities was also notedâ
The Attorney General of the United States is going to add weight to this issue, according to the OCC.
âNotably, the Federal Deposit Insurance Corporation reported it assessed the bank on Friday before the close of business hours and all accounts for bank customers were reassigned to First Bank & Trust Co in Duncan, Oklahoma.â
On account of liquidity and covering inadequate capital, a Philadelphia-based bank named Republic Bank recorded the first bank failure this year and was reported to have collapsed in the first week of February.
Some of the most disastrous failures in 2023, such as Franklin Templeton, Signature and First Republic Banks, for instance, had no excuse for failing this. These were followed by a sequence of several more calamities in fact.
Similar to SVB and First Republic that collapsed due to liquidity strains, poor risk policies and unsold securities which caused losses, Signature Bank was also in need of regulation due to a swift withdrawal of deposits.
Only that, it was unable to keep its clients in check because the bank had plenty of robust reliance.
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