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Greater Atlantic Bank on verge of failure [Northern Va. bank] [FDIC Friday]
The Washington Business Journal ^ | 2009-05-29

Posted on 05/29/2009 2:20:50 PM PDT by rabscuttle385

Regulators slapped Greater Atlantic Bank with a prompt corrective action directive, warning the troubled bank that it will be seized if it does not quickly find capital or a merger partner, according to a Wednesday securities filing.

The Reston-based bank, a subsidiary of Greater Atlantic Financial Corp. (Pink Sheets: GAFC), has been in hot water with its regulator, the Office of Thrift Supervision, since April 2008, when it was hit with a cease and desist enforcement order.

The bank was undercapitalized in the fourth quarter of 2008 and the bank said it was “critically undercapitalized” as of March 31.

The OTS told Greater Atlantic that its capital restoration plan was “unacceptable,” the bank said.

The prompt corrective action directive, issued May 22, initially ordered the bank to either achieve acceptable capital levels or be recapitalized by merger, acquisition or sale by June 1, but that has since been extended to July 31. The directive initially also gave the bank until May 27 to enter into a binding merger agreement or acquisition agreement, but that deadline was extended to June 15, according to the order and modification.

(Excerpt) Read more at bizjournals.com ...


TOPICS: Business/Economy; Government; US: Virginia
KEYWORDS: bankfailure; banking; fairfaxcounty; fdic; govwatch; greateratlanticbank; reston

1 posted on 05/29/2009 2:20:50 PM PDT by rabscuttle385
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To: wafflehouse; Leisler; PAR35; TigerLikesRooster; AndyJackson; Thane_Banquo; nicksaunt; ...
*Ping!*
2 posted on 05/29/2009 2:22:07 PM PDT by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: rabscuttle385

These guys sneak stuff out on Friday afternoon, just like the Demorat party.


3 posted on 05/29/2009 2:25:01 PM PDT by alrea
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To: rabscuttle385; M. Espinola; TigerLikesRooster; GOPJ
The FDIC is nearly BK. You heard it here first. Who to blame ______ ? 25 People to Blame for the Financial Crisis

When your local bank goes bust next year: Blame all those crooked banksters that used to post vile, slanderous attacks against me on FR.

4 posted on 05/29/2009 2:32:40 PM PDT by ex-Texan (Ecclesiastes 5:10 - 20)
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To: ex-Texan

Undercapitalized...so their books look like crap, but if they’re making payroll, let ‘em be.


5 posted on 05/29/2009 2:41:06 PM PDT by DonaldC
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To: rabscuttle385

Banks are going under - it must be Friday...


6 posted on 05/29/2009 2:54:36 PM PDT by GOPJ (To a community organizer, every citizen looks like a victim entitled to someone else's money-Philbin)
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To: ex-Texan

I’m not backing down. I still say the housing bubble was local. The housing problems have been concentrated in a handful of states. Values have slipped a little where I live, but not enough to cause any grief.

Almost all of the housing problems are still concentrated in a few locations. West coast, Las Vegas,Phoenix, limited areas of Utah and Colorado, metro Atlanta, Florida, DC suburbs.


7 posted on 05/29/2009 3:17:18 PM PDT by PAR35
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To: PAR35

“I’m not backing down. I still say the housing bubble was local.”

It’s been the biggest loss of real estate valuation in history, affecting most developed economies. Consider the 1st Rule of Holes: when you’re in one, stop digging.


8 posted on 05/29/2009 6:14:02 PM PDT by Pelham (California, formerly part of the USA)
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To: Pelham

Anyone smart enough to pay less than 75/sqft and under $25K for the land should still be in really good shape.


9 posted on 05/29/2009 6:27:12 PM PDT by PAR35
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To: rabscuttle385
Seems every Friday that tacky Madonna song “Manic Monday” pops into my head Only I sing “Just another F%$@$ed up Friday...” Shame on me...
10 posted on 05/30/2009 9:30:59 PM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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To: April Lexington

“Manic Monday”. That was not a Madonna song, it was the girl group “The Bangles” from 1986, with lyrics written by Prince in 1984...

dvwjr


11 posted on 05/30/2009 9:47:17 PM PDT by dvwjr
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To: dvwjr

Oh, Yea. I forgot. Thanks for the reminder. The Bangles. Didn’t they do “Love Shack?”


12 posted on 05/30/2009 9:49:06 PM PDT by April Lexington (Study the constitution so you know what they are taking away!)
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