The financial regulators have recently closed a bank in Oklahoma, which is the second bank failure in the United States in 2024.
According to the Office of the Comptroller of the Currency, the First National Bank of Lindsay has been closed.
The agency claims that it acted after identifying false and deceptive bank records and other information that suggests deception depleted the bank’s capital.
“According to the OCC, the bank’s assets were insufficient to cover its debts to creditors and others, and the bank was in an unsafe or unsound position to do business.”
Additionally, the OCC is bringing the issue to the attention of the US Department of Justice. According to the Federal Deposit Insurance Corporation, the bank’s entrances were secured prior to the commencement of the weekend, and all deposits have been transferred to First Bank & Trust Co. in Duncan, Oklahoma.
The inaugural bank failure of 2024 was Republic Bank, a Philadelphia-based institution that collapsed due to substantial financial losses, insufficient capital reserves, and asset quality concerns.
This was the result of a string of high-profile bank disasters in 2023, such as First Republic Bank, Signature Bank, and Silicon Valley Bank.
Similar issues of liquidity pressures, inadequate risk management, and unrealized losses on securities contributed to the collapse of SVB and First Republic.
Regulators reported that Signature Bank experienced a rapid discharge of deposits, despite having sufficient capital, necessitating their intervention.
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