[Federal Register Volume 78, Number 40 (Thursday, February 28, 2013)]
[Notices]
[Page 13671]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-04553]


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FEDERAL DEPOSIT INSURANCE CORPORATION


Determination of Insufficient Assets to Satisfy Claims Against 
Financial Institution in Receivership

AGENCY: Federal Deposit Insurance Corporation (FDIC).

ACTION: Notice.

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SUMMARY: The FDIC has determined that insufficient assets exist in the 
receivership of Franklin Bank, S.S.B., Houston, Texas, to make any 
distribution on general unsecured claims, and therefore such claims 
will recover nothing and have no value.

DATES: The FDIC made its determination on February 22, 2013.

FOR FURTHER INFORMATION CONTACT: If you have questions regarding this 
notice, you may contact an FDIC Claims Agent at (972) 761-8677. Written 
correspondence may also be mailed to FDIC as Receiver of Franklin Bank, 
S.S.B., Attention: Claims Agent, 1601 Bryan Street, Dallas, Texas 
75201.

SUPPLEMENTARY INFORMATION: On November 7, 2008, Franklin Bank, S.S.B., 
Houston, Texas, (FIN 10021) was closed by the Texas Department 
of Savings and Mortgage Lending, and the Federal Deposit Insurance 
Corporation (``FDIC'') was appointed as its receiver (``Receiver''). In 
complying with its statutory duty to resolve the institution in the 
method that is least costly to the deposit insurance fund (see 12 
U.S.C. 1823(c)(4)), the FDIC facilitated a transaction with Prosperity 
Bank, El Campo, Texas, to assume all deposits and a portion of the 
assets of the failed institution.
    Section 11(d)(11)(A) of the FDI Act, 12 U.S.C. 1821(d)(11)(A), sets 
forth the order of priority for distribution of amounts realized from 
the liquidation or other resolution of an insured depository 
institution to pay claims. Under the statutory order of priority, 
administrative expenses and deposit liabilities must be paid in full 
before any distribution may be made to general unsecured creditors or 
any lower priority claims.
    As of December 31, 2012, the maximum value of assets that could be 
available for distribution by the Receiver, together with maximum 
possible recoveries on professional liability claims against directors, 
officers, and other professionals, plus anticipated maximum recoveries 
from pending transactions was $714,420,467. As of the same date, 
administrative expenses and depositor liabilities equaled 
$1,031,660,492, exceeding available assets and potential recoveries by 
$317,240,025. Accordingly, the FDIC has determined that insufficient 
assets exist to make any distribution on general unsecured creditor 
claims (and any lower priority claims) and therefore all such claims, 
asserted or unasserted, will recover nothing and have no value.

    Dated: February 22, 2013.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2013-04553 Filed 2-27-13; 8:45 am]
BILLING CODE 6714-01-P