Financial regulators just closed a bank in Oklahoma, marking the second U.S. bank failure of 2024.
The First National Bank of Lindsay has been closed by the Office of the Comptroller of the Monet.
The agency says it took action after identifying false and deceptive bank records and other information indicating that fraud has depleted the bank’s capital.
“The OCC also found that the bank was in an unsafe or unhealthy condition to conduct business and that the bank’s assets were less than its obligations to its creditors and others.”
The OCC also forwards the case to the U.S. Department of Justice.
The Federal Deposit Insurance Corporation says they locked the bank’s doors before the weekend started, and all deposits were transferred to First Bank & Trust Co. in Duncan, Okla.
The first bank failure of 2024 was Philadelphia-based Republic Bank, which collapsed amid significant financial losses, inadequate capital reserves and asset quality issues.
This followed a string of high-profile bankruptcies in 2023, including Silicon Valley Bank, Signature Bank and First Republic Bank.
SVB and First Republic went bankrupt due to similar issues of liquidity pressures, poor risk management and unrealized securities losses.
Despite having sufficient capital, regulators said Signature Bank was witnessing a rapid outflow of deposits, necessitating intervention.
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