"Our goal is to have this institution back in private hands before year's end," says Acting FDIC Chairman John Reich.
Superior Bank had about $42.9 million of potentially uninsured deposits held by approximately 1,000 depositors when it was closed. FDIC will provide a $1.5 billion line of credit to New Superior to support continued banking operations.
The bank grew rapidly by specializing in subprime home equity loans but ran into trouble recently with auto loans and high marketing costs. The bank has assets of $2.3 billion and total deposits of $1.6 billion.
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