FDIC Shuts Silverton Bank

NEW YORK (Reuters) – The U.S. Federal Deposit Insurance Corp said on Friday that it would wind down Silverton Bank, a failed Atlanta bank that regulators seized last month, and sell its assets instead of trying to sell it as a whole.

Regulators took over the bank on May 1 and created a “bridge bank” to run Silverton while they searched for a buyer.

But the FDIC said its marketing efforts did not result in any interest in acquiring Silverton.

“Prior to the FDIC’s appointment as receiver, Silverton had initiated a marketing effort which was allowed to continue until a whole bank acquisition was no longer feasible,” it said in an e-mailed statement.

Silverton, which provided services to other banks rather than to consumers, had about $4.1 billion in assets and $3.3 billion in deposits.

A consortium of private equity firms, including Carlyle Group [CYL.UL], Lightyear Capital, Harvest Partners and Colony Capital, was in talks to buy the bank, The Wall Street Journal reported. (Reporting by Paritosh Bansal, editing by Dave Zimmerman and Lisa Von Ahn)