FDIC Shuts Down Silverton Bank

The Federal Deposit Insurance Corp. has shut down Silverton Bank, the failed Atlanta “bank of banks,” instead of selling it to private-equity investors, according to a person familiar with the situation.

[blogger comment: here is the key to this article] Because Silverton doesn’t have retail deposits, its closure doesn’t present the same problems that the shuttering of a more traditional bank would. Small community banks, which are Silverton’s main customers, can take their business elsewhere.

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