U.S. to Prop Up Oklahoma Bank
Federal regulators today announced a $130-million assistance program for Bank of Oklahoma, Oklahoma City, saying it was in danger of closing its doors without the government aid.
The move to bolster the Oklahoma City bank, with $500 million in assets, represented the first time such aid has been mobilized for a multibank holding company, regulators said.
Bank of Oklahoma is one of 11 banking subsidiaries of BancOklahoma Corp., a bank holding company with assets of more than $2.5 billion.
A worldwide slump in oil prices has caused financial problems in energy-producing states. Federal regulators refused to comment on the cause of the latest trouble, but they cautioned against presuming it was a direct result of energy loans.
Under the agreement, Bank of Oklahoma, Oklahoma City, is to be merged into the $1.6-billion Bank of Oklahoma, Tulsa, the largest component in the BancOklahoma group.
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