Thursday, November 13, 2008

Bank Collapse Watch: Franklin Dissolves

Ranieri's Franklin Bank files Chapter 7 bankruptcy
NEW YORK (Reuters) - Franklin Bank Corp, the lender founded by mortgage securities pioneer Lewis Ranieri, filed for bankruptcy protection and plans to liquidate, after federal regulators seized its banking unit.

The Houston-based lender late Wednesday filed for Chapter 7 protection from creditors with the U.S. Bankruptcy Court in Wilmington, Delaware.

Franklin said it had "very limited remaining tangible assets" following the November 7 Federal Deposit Insurance Corp seizure of its banking unit.

The company said it has less than $500,000 of assets, and between $100 million and $500 million of liabilities, including some convertible notes and preferred securities.

Emphasis added by me.

What the fuck did they do to this bank?

They shouldn't all just walk away. They should all be arrested for massive fraud and put on trial!

How many more banks are there just like this one?

Previously here:

Bank Collapse Watch: Two In U.S., One in Latvia

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