Another US Bank falls; Alpha, becomes 16th to collapse this year

Another US Bank falls; Alpha, becomes 16th to collapse this year


Another sign of deepening financial crisis, Stearns Bank will acquire the Georgia-based Alpha Bank and Trust, the 16th American bank to fall this year.

On friday, the US authorities seized the operations of Alpha Bank.

Alpha Bank and Trust, Alpharetta, Georgia, was closed today by the Georgia Department of Banking and Finance, and the Federal Deposit Insurance Corporation (FDIC) was named receiver.


"To protect the depositors, the FDIC entered into a purchase and assumption agreement with Stearns Bank, National Association, St Cloud, Minnesota, to assume the insured deposits of Alpha Bank & Trust," the FDIC said in a statement yesterday.

The statement noted that Alpha Bank is the 16th FDIC-insured institution to be closed this year and added that the cost to its Deposit Insurance Fund would be $158.1 mn.

In a separate statement on Friday, Stearns Bank's Chief Executive Norman C Skalicky said the current capital position of the bank is about $250 mn.

BUSINESS STANDARD