Or is it just bad luck?

Another bank connected to the McCain family bites the dust. This would be funny if it wasn’t for the fact many people will lose their hard earned cash behind this bank’s closure. Folks with over $100,000 are not insured for their full loss by the FDIC.  The reason given for the closure by the FDIC was “a substantial amount of “poor-quality loans primarily related to real estate development”.

Normally, someone on the bank’s board of directors or the bank’s Audit department would have picked up on the potential problems right? Enter Andrew McCain he was a Board member and a member of the bank’s audit committee, responsible for oversight of the company’s accounting.

Read on…

FDIC shutters Silver State Bank of Nevada

Son of presidential nominee John McCain was reportedly former board member; closing marks the 11th bank failure this year.

Source: AP/CNN Money

WASHINGTON (AP) — Regulators on Friday shut down Silver State Bank, saying the Nevada bank failed because of losses on soured loans, mainly in commercial real estate and land development.

It was the 11th failure this year of a federally insured bank.

Nevada regulators closed Silver State and the Federal Deposit Insurance Corp. was appointed receiver of the bank, based in Henderson, Nev. It had $2 billion in assets and $1.7 billion in deposits as of June 30.

Andrew K. McCain, a son of Republican presidential nominee John McCain, sat on the boards of Silver State Bank and of its parent, Silver State Bancorp, starting in February but resigned in July citing “personal reasons,” corporate filings with the Securities and Exchange Commission show. Andrew McCain also was a member of the bank’s audit committee, responsible for oversight of the company’s accounting.

The younger McCain, who is the chief financial officer of Hensley & Co., the beer distributorship of which Cindy McCain is chairwoman, is the Arizona senator’s adopted son from his first marriage.

Andrew McCain’s position on the Silver State board and departure were first reported Friday by The Wall Street Journal online.

Silver State Bank ran into difficulty because of a substantial amount of “poor-quality loans primarily related to real estate development” in southern Nevada and other distressed markets, FDIC spokesman David Barr said.

“When the housing market slowed down, people who bought raw land to build new homes didn’t need that land so they couldn’t do anything with it and repay their loans. So those loans went bad,” Barr said.

Silver State Bancorp recently reported a net loss for the second quarter of $73.2 million, or $4.84 a share, compared with net profit of $6.2 million, or 44 cents a share, in the same period last year.

Read more regarding this story here.

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