Another US regional bank bites the dust

Georgia state-based Security Bank Corp saw six of its subsidiary banks shut down last Friday by the Georgia Department of Banking Finance, and placed under the receivership of the FDIC.

Given that the principal assets of Security Bank were its capital stock it owns in the closed banks, the bank now has minimal remaining tangible assets, the SEC filing stated.

The bank, with a total of $289 million in outstanding debt as of May 2009, will file voluntary petitions at the US bankruptcy court for the middle district of Georgia shortly, for relief under chapter 7 of the bankruptcy code.