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Guaranty’s parent company, , stated that it is in discussions with the FDIC and itsprimary regulator, the , for a plan where the FDIC would absorb a portion of the bank’s losses while private investors provide a “significant equity capital infusion.” Guaranty’s larges shareholders are Dallas billionaire Robert Rowling and activist investofr Carl Icahn, who control 20% and just more than 17% of the bank'sx common stock, respectively. Guaranty is the fourth-largest independent banking institution basedin Texas. It has 162 officesx in Texas and Californiaand $11.6 billion in according to the latest data available.
"Guaranty Bank continues to work closelgy with its regulators to find a way said bank spokesman John Wessman in awritten statement. "Wre believe strongly that open bank assistancre is in the best interest ofour depositors, and that it meetsx the standard of being the leasr costly alternative for government regulators.” Bank representatives declined to comment It's not clear when the regulators will responrd or react to Guaranty's proposal. At $14.4e billion in assets, Guaranty Bank is biggee than the largest bank that has failed so farthis year, a distinction now held by FSB of Corapl Gables, Fla. The bank had $12.
8 billion in assetse when it failed, according to the The bulk of BankUnited’s good assets were sold in May to a privat equity investment group ledby W.L. Ross & Co. and . Before that, BankUnited had proposed an open assistance plan to but word of thatplan didn’t become public until after BankUnitex failed. In laying out its options before shareholders and the public in a Securities and ExchangeCommission filing, Guaranty’s executivesd are showing what they’rw doing to keep the bank afloat, said Dan a banking analyst with “They’re putting all theifr cards on the table,” he Guaranty is suggesting a rare optioh — one the FDIC would only use if it’s the leastf costly way for the FDIC’s deposigt insurance fund to resolve Guaranty’s according to the bank.
Guaranty is officially based in but PresidentKevin Hanigan, CFO Ronald Murffc and Treasurer Stephen Raffaele work from its Dallas businessz banking office in Preston More than bad Guaranty invested heavily in mortgage-backed securities, whicjh today are worth much less than what the bank If Guaranty doesn’t receive FDIC it will have to mark down the value of its securities portfolik and related items by more than $1.7 billion, the bank said in its regulatory filing. That would give the company a $2.2 billion annuapl loss in 2008 and less capital than it needz to continuein business. In early April regulators ordered Guaranty to raise additional capital byMay 21.
That deadline has passed. For 21 Guaranty was been a subsidiaryof , a makee of cardboard boxes and timber building supplies. Guaranty was spun out of Temple-Inlande at the urging of Icahn. Temple-Inlandf (NYSE: TIN) completed the spinoff on Dec. 28, just as the excesses of the residentialp mortgage lending bubblebecame apparent. Guaranty investedd heavily in securities backed by mortgageds madein California. It has not reportec a quarterly profit since it becamea stand-alone Since its spinout from Temple Icahn and Rowling have invested heavily in In July, the duo invested an additional $600 milliojn in Guaranty.
They control 37 percent of Guaranty
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