Omni National Bank is the 21st bank failure of 2009

March 27, 2009 by · Leave a Comment
Filed under: Bank Failure 

They went under with almost $1 billion in assets.  They must of  had a lot of bad loans and other assets on their books for the FDIC to come in and shut them down.  I wish they would be more open about what the “unsound” practices they were using so the public could be more educated.

News (Reuters):

Georgia-based Omni National Bank was seized on Friday and placed into receivership under the Federal Deposit Insurance Corp, the U.S. government said on Friday.

The bank had about $980 million in assets at the end of 2008, the Office of the Comptroller of the Currency said in a statement.

Omni National Bank had six branches in Atlanta and Dalton, Georgia; Chicago, Illinois; Tampa, Florida; and Houston and Dallas, Texas, the government said. It also had two loan production offices in Birmingham, Alabama, and Philadelphia, Pennsylvania.

The bank, with approximately $980 million in assets at Dec. 31, 2008, was established in 2000.

The bank was seized after finding Omni National Bank had “experienced substantial dissipation of assets and earnings due to unsafe and unsound practices,” the comptroller’s office said. Losses at the bank have depleted most of its capital and there is “no reasonable prospect” that Omni National Bank would become adequately capitalized without federal assistance, it said.   

 

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