Guaranty Bank on the Verge of Collapse

August 4, 2009 12:00:00 AM PDT
A Texas bank with some branches here in the Valley could be on the verge of collapse.Austin based Guaranty Bank has $748-million dollars in bad debt, prompting speculation it could soon fail. Much of that debt is tied to real estate in California.

If Guaranty were to fail, it would be the biggest bank failure of 2009.

But experts say there is little reason guaranty customers need to worry.

"If you have your money in Guaranty, you are 100-percent insured. FDIC was created back in 1933 from 1933 all the way up here to 2009, not a penny has been lost by depositors in FDIC- insured institution," said John Heasley with the Texas Bankers Association.

Most Guaranty Bank branches are in Texas, but they do have four Valley locations. They are in Fresno, Clovis, Merced and Atwater

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