FDIC: "Biggest failure of a Wisconsin-based bank"
The sudden forced closure of Guaranty Bank is being called the largest failure of a Milwaukee-based bank.
FDIC spokesperson, Barbara Hagenbaugh, said, "It is the biggest failure of a Wisconsin-based bank."
The Office of the Comptroller of Currency announced it shutdown Guaranty Bank Friday evening.
A press release from the OCC explains, "The OCC acted after finding that the bank had experienced substantial dissipation of assets or earnings due to unsafe or unsound practices. The OCC also found that the bank was significantly undercapitalized and failed to submit a capital restoration plan acceptable to the OCC."
Hagenbaugh said all Guaranty Bank accounts have been transferred to First Citizens Bank. She said, “...part of what we [FDIC] do is to make sure that there is a smooth transition, and that customers are kept hole and that their money is safe."
Only 10 stand-alone Guaranty Bank locations will reopen under the First Citizens Bank name, the remaining branches have already been closed down.
A spokesperson from First Citizens Bank explained the remaining branches were located inside retail or grocery stores, and said those type of bank branches do not fit the First Citizens Bank operating model.
Before being shutdown, Guaranty Bank had 580 employees in Wisconsin. First Citizens Bank is not saying how many former Guaranty Bank employees will be retained.
According to it's company website, Guaranty Bank was founded in Milwaukee in 1923.