Newark Bank the Third to Close Nationwide in a Week
Things haven't been looking to good for banks in the Newark area lately. Regulators have officially closed a third bank in the span of a week. This time it was City National Bank of New Jersey in Newark. City National was the latest in a nationwide failure and the fourth this year.
According to the FCID, City National, a minority depository institution, had about $120.6 million in assets and $111.2 million in deposits on Sept. 30. It is estimated that the failure will cost the Deposit Insurance Fund about $2.5 million.
"The OCC acted after finding that the bank had experienced substantial dissipation of assets and earnings due to unsafe or unsound practices," said a regulator in a statement . "The OCC also found that the bank was undercapitalized and failed to submit a capital restoration plan acceptable to the OCC."