Guaranty Financial Group Inc., the parent company of the recently failed Guaranty Bank, Austin, Texas, has filed for bankruptcy protection, listing assets of $24.3 million and debts of $323.4 million. Guaranty Bank was also a warehouse provider to non-bank mortgage lenders, a business it was in the process of winding down when the Federal Deposit Insurance Corp. seized the lender on August 21. The agency sold Guaranty to Banco Bilbao Vizcaya Argentaria SA, Spain's second-biggest depository. "Beginning in 2007, volatility in the credit and residential housing markets resulted in extensive impairment of existing mortgage-backed securities held by GFG and its subsidiaries," the company said in its bankruptcy court papers.
Processing Content
