Friday, September 5, 2008

Silver State Bank Shutdown; McCain's Son Was Director

State of Nevada regulators and the FDIC have shutdown Silver State Bank.

John McCain's son, Andrew, sat on Silver State's board and was a member of its three-person audit committee, which was responsible for overseeing the company's financial condition.

Andrew McCain left the Henderson, Nev., bank July 26 after five months on the board, citing "personal reasons." He is McCain's adopted son from his first marriage.

Prominent libertarian writer, Douglas E. French, formerly Executive Vice President of Commercial Real Estate Lending at Silver State Bancorp and top Commercial Loan producer for the bank, resigned from the bank for "personal reasons" in May.

As of June 30, 2008, Silver State Bank had total assets of $2.0 billion and total deposits of $1.7 billion. Nevada State Bank agreed to purchase the insured deposits for a premium of 1.3 percent. At the time of closing, there were approximately $20 million in uninsured deposits held in approximately 500 accounts that potentially exceeded the insurance limits. This amount is an estimate that is likely to change once the FDIC obtains additional information from these customers.

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