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Feds shut down Atlanta ‘bank of banks’

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In what's reportedly the biggest bank failure in Georgia history, federal regulators have shut down Atlanta-based Silverton Bank N.A., appointing the Federal Deposit Insurance Corp. as receiver. Silverton Bank had approximately $4.1 billion in assets and $3.3 billion in deposits, all of which the FDIC said are expected to be within its insurance limits. It was the 30th bank failure nationwide so far this year, and Georgia's sixth (see list of failed banks). As a commercial "bank of banks" that provided correspondent banking services to 1,400 client banks in 44 states, Silverton Bank didn't take deposits from the public or make loans to consumers, the FDIC said. The bank's failure will put a $1.3 billion dent in the FDIC's insurance fund. The creation of a new bridge bank, Silverton Bridge Bank N.A., means regulators expect no "meaningful impact on the bank's clients," the FDIC said in a press release. But the Atlanta Business Chronicle, citing industry ...