A quick update on the still unreported saga of Silver State Bancorp, the failing bank where John McCain's (R) son Andrew served as a director and member of the bank's Audit Committee. (See here, here and here for refreshers.)
It's been 10 days since McCain suddenly resigned from the bank, citing "personal reasons" and neither McCain nor the bank has returned phone calls to local media. The national media still isn't paying attention to this serious story.
Despite a 331-point gain in the stock market yesterday -- and a serious rally among banking stocks -- Silver State's stock (SSBX) continues its pummeling. Yesterday alone, the stock dropped another 7 percent. It was the fifth straight day of huge declines:
Aug 5: $0.65 -.05 (- 7.1%)
Aug 4: $0.70 -.09 (-11.4%)
Aug 1: $0.79 -.11 (-12.2%)
Jul 31: $0.90 -.38 (-29.7%)
Jul 30: $1.28 -.05 (- 3.8%)
As of 12:25 pm ET today, the stock is down another 7 percent at about 65 cents per share. Keep in mind that the stock stood at $8.70 when McCain joined the board on April 1st (after a merger with Choice Bank where he served as director since 2006) and has lost 93 percent of its value ever since.
It's worth noting that the FDIC has recently been seizing insolvent banks at the close on business on Fridays in hopes keeping depositors calm so to avoid "runs" on those banks. Given the especially dire financial results that Silver State announced last week, we should be on the lookout for any FDIC action on Friday. It's hard to imagine that Silver State will avoid seizure, given how dire their situation is. For me, the question is when -- not if -- the feds step in.
If the FDIC does seize the bank, maybe that will spur the national media to start asking why the Republican presidential nominee's son -- and one of his top campaign fundraisers -- is at the center of a failing bank during the biggest banking crisis in this country in 20 years?
Recall that there's quite a sordid history of failed banks and the McCains.
During the last banking crisis -- the S&L meltdown of the 1990s -- it was none other than Sen. John McCain (R-AZ) who was rebuked by the U.S. Senate for trying to keep federal regulators away from a failed bank owned by a top fundraiser, and his wife's business partner, Charles Keating -- a scandal we would come to know as The Keating Five.
Mark Nickolas is the Managing Editor of Political Base, and this story was from his original post, "Will The Feds Seize McCain's Son's Bank On Friday?"