Louisiana bank failure is costliest since financial crisis
Banking regulators are seizing New Orleans-based First NBC Bank in the costliest bank failure since the financial crisis.
Louisiana regulators seized the bank Friday and handed it to the Federal Deposit Insurance Corp., which expects to spend $1 billion to mop up the mess.
First NBC is the fourth federally insured bank to fail this year.
The FDIC is selling $1.6 billion in deposits and $1 billion in assets to Hancock Holding Co. of Gulfport, Mississippi. It will fold First NBC's 29 branches into its Whitney Bank and Hancock Bank units.
The FDIC will send $1.4 billion in checks to other depositors, and separately sell $2 billion-plus in First NBC assets. No depositors will lose money.
FDIC spokesman David Barr says only Hancock bid for First NBC, paying $35 million for deposits.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
LSU Frat suspended following hospitalization of student, death of second student
Arrest documents reveal details related to timeline of alleged toddler-killer's crime spree
Partial closure of Greenwell Springs Road early Wednesday morning
Zachary police looking to deter crime with brighter streets
Saints, city officials reach agreement to return fans to Superdome starting this...