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Experts believe more Tarp participants will fail as the economy plods along, and that investors should keep this in mind when bidding on auctions of the Treasury's Tarp holdings.
October 25 -
Three banks failed Friday – including two in Florida – and will cost the Federal Deposit Insurance Corp. an estimated $86 million. Regulators seized the $200 million-asset Excel Bank in Sedalia, Mo.; the $159 million-asset GulfSouth Private Bank in Destin, Fla.; and the $67 million-asset First East Side Savings Bank in Tamarac, Fla.
October 19
Three Missouri businessmen accused of defrauding Excel Bank, which later failed, were arraigned in federal court in St. Louis on Friday.
William Glasgow, James Crews and Michael Hilbert each face two felony counts of bank fraud, according to a
Glasgow, 72, owned the real estate business Glasgow Realty. He is accused of submitting false information about his rental properties to Excel in order to take out nearly $2 million in loans in 2009, according to the
A separate
"When Excel Bank failed, taxpayers lost their entire $4 million Tarp investment in the bank and more than $900,000 in past-due dividends," Christy Romero, the Tarp special IG, said in the release. "Defrauding a Tarp bank is defrauding the federal taxpayers who funded the Tarp bailout. "
Each count of bank fraud carries a maximum penalty of 30 years in prison and a fine of up to $1 million.
