Nevada State Bank of Las Vegas will take over the insured deposits of Silver State -- which had $2 billion in assets and $1.7 billion in deposits at the end of June. AP reports that "[Silver State's] branches will reopen Monday as offices of Nevada State Bank in Nevada and National Bank of Arizona in Arizona."
John McCain's son, Andrew, who is also CFO of his mom's beer distributorship, "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.' Andrew McCain also was a member of the bank's audit committee, responsible for oversight of the company's accounting," according to AP.
The failure -- which was caused by "poor-quality loans primarily related to real estate development" -- will cost the FDIC deposit insurance fund between "$450 million [and] $550 million," according to AP. Silver State's motto was "When the casinos treat you poorly, let Silver State treat you like a valued customer," according to its website.
Although AP reports he was adopted by McCain and his first wife, Andrew is following in his father's footsteps. John McCain protected Charles Keating from government regulators because he had arranged a real estate deal for his second wife, Cindy. The failure of Keating's S&L cost taxpayers $3.4 billion. Taxpayers got off relatively cheaply bailing out Andrew's former colleagues.
So if you have money in a riskier bank -- one that is losing money and charging off large volumes of loans -- consider moving it into a bank whose profits have been growing this year. And congratulations to Andrew McCain for bailing out of Silver Lake before the FDIC took it over.