No. 2 Tex. Bank to Ask FDIC Aid; Shaky Loans Blamed
MCorp, the second-biggest banking company in Texas and the last of the state’s major banks to avoid seeking outside help, said today that it will ask the Federal Deposit Insurance Corp. for assistance with a proposed recapitalization.
Sources blamed shaky real estate and commercial loans.
“At this time it is not possible to determine the ultimate likelihood, amount, nature or timing of any FDIC assistance for any recapitalization, nor is it possible to predict the impact of the transaction on MCorp’s stockholders and creditors,” said a statement by Gene H. Bishop, chairman, and John T. Cater, president.
Steve Katsanos, a spokesman for the FDIC in Washington, said the agency will not have any comment on the matter.
MCorp’s stock had dropped half a dollar to hit a new low of 75 cents a share Tuesday but bounced back to 1.12 1/2 on Wednesday and Thursday. Today’s announcement pushed it down to 87 1/2 cents.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
