Wednesday, September 23, 2009

How the mightly have fallen. A cease and desist order

Buffett called the Bank of Granite one of the best banks a while ago...

and now, today:
Bank of Granite Corp. has agreed to a cease and desist order with the Federal Deposit Insurance Corp. and North Carolina’s banking commissioner to halt “unsafe and unsound banking practices and violations.”

Such an order is considered one of the most serious regulatory steps the FDIC can take in its oversight of a bank. In many cases, a cease and desist order is often the last step taken before a bank fails.