BANKING & FINANCE - Aug. 6, 1991
From Times Staff and Wire Reports
Miami Bank May Be in Trouble: Southeast Banking Corp. is borrowing funds from the Federal Reserve Bank of Atlanta, a sign that the Miami-based company may have liquidity problems, sources said. Banks that have short-term funding problems can borrow from the Federal Reserve if they put up assets as collateral. Institutions usually shy away from doing so because the marketplace perceives the borrowing as a sign that a bank is unable to maintain liquidity from traditional sources, such as customer deposits and funds purchased from correspondent banks. A real estate downturn in Florida has hurt Southeast.
