FDIC Creates Bridge Bank

By Tim Holland

The FDIC announced the creation of a bridge bank to take over the operations of Silverton Bank, National Association, Atlanta, GA. Silverton Bank was closed by the Office of the Controller of the Currency on Friday, May 1, 2009 and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Silverton Bank did not deal directly with consumers but served as a correspondent bank for smaller banks around the country. The new bank will be called Silverton Bridge Bank.

The failure of Silverton Bank continues to demonstrate the weakness in the country’s financial structure. He bank’s primary function was to provide correspondent banking services to smaller independent banks around the country and did not deal directly with consumers. It had 1,400 client banks in 44 states and maintained six regional offices. Silverton, at the time of its closing, had assets of $4.1 billion and $3.3 billion in deposits (all of which will be covered by FDIC insurance).