The failure of a bank which had had McCain's son as a Director brings back to mind the Keating Five Scandal. John McCain was himself one of the five Senators who were involved in trying to get the Federal Home Loan Bank Board (FHLBB) regulators not to close the Lincoln Savings and Loan Association owned by the chairman,Charles H. Keating, Jr.
The FDIC said in its press release:
To protect the depositors, the FDIC entered into a Purchase and Assumption Agreement with Nevada State Bank, Las Vegas, Nevada, to assume the Insured Deposits of Silver State Bank.The failure was brought on by bad loans in the real estate and construction business in Nevada and Arizona. Reuters writes that "The failure is expected to cost the FDIC deposit insurance fund between $450 million and $550 million."
The branches of Silver State Bank will open on Monday as Nevada State Bank in Nevada and National Bank of Arizona in Arizona. Depositors of the failed bank will automatically become depositors of Nevada State Bank or National Bank of Arizona
This will not be the last bank to go under in the near future.