Oklahoma bank fails, in-state peer buys insured deposits

Oklahoma bank fails, in-state peer buys insured deposits

Alleged "fraud" is believed to be behind the First National Bank of Lindsay's failure, the second U.S. bank collapse this year. The FDIC’s Deposit Insurance Fund will take a roughly $43 million hit.

Fraud suspected in Oklahoma bank failure

The Office of the Comptroller of the Currency closed The First National Bank of Lindsay, Okla., on Oct. 18 after finding “false and deceptive bank records and other information suggesting fraud that revealed depletion of the bank’s capital.” As of June 30, The First National Bank of Lindsey had $108 million in assets. Of the bank’s $97.5 million in deposits, $7.1 million allegedly exceeded FDIC insurance limits.  “The OCC also found that the ban…