Omni National, with $980 million in assets, was shut by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corp. was named receiver, the OCC said today in a statement. The Federal Reserve on March 17 ordered the bank to bolster its capital and make improvements in accounting controls within 30 days.
“The bank had experienced substantial dissipation of assets and earnings due to unsafe and unsound practices,” the OCC said. The losses “depleted most of its capital” and there was no “reasonable prospect” the levels would rise without government action.
The U.S. has lost 4.4 million jobs since the recession began in December 2007 and unemployment jumped to 8.1 percent in February, the highest in more than 25 years, crippling homeowners trying to pay off their mortgages. The Obama administration’s $787 billion stimulus package is aiming to create or save 3.5 million jobs and boost the economy.
The failed bank had six branches in Georgia, Illinois, Florida and Texas, and two loan offices in Alabama and Pennsylvania, the OCC said. The lender opened in 2000.