Alpha Bank falls; becomes 16th to collapse this year

New York, Oct 25 (PTI) In another sign of deepening
financial crisis, Stearns Bank will acquire the failed
Georgia-based Alpha Bank and Trust, making it the 16th
American bank to fall this year.

On Friday, the U.S. authorities seized the operations of
Alpha Bank.

"Alpha Bank and Trust, Alpharetta, Georgia, was closed
today by the Georgia Department of Banking and Finance, and
the Federal Deposit Insurance Corporation (F.D.I.C.) was named
receiver.

"To protect the depositors, the F.D.I.C. entered into a
purchase and assumption agreement with Stearns Bank, National
Association, St Cloud, Minnesota, to assume the insured
deposits of Alpha Bank & Trust," the F.D.I.C. said in a
statement Friday.

The statement noted that Alpha Bank is the 16th
F.D.I.C.-insured institution to be closed this year and added
that the cost to its Deposit Insurance Fund would be 158.1
million dollars.

In a separate statement on Friday, Stearns Bank's Chief
Executive Norman C. Skalicky said the current capital position
of the bank is about 250 million dollars.

"We have over 23 per cent capital in our banking system
today. This is three times the average capital of all
commercial banks in the United States, four times what is
considered being well capitalised, and almost ten times what
some of the investment banks have or had."

"We have a very sound and diversified asset portfolio
spread between six different financial products. We are
pleased to bring the safety and soundness of Stearns Bank to
the former depositors of Alpha Bank & Trust," Norman C.
Skalicky said.

Minnesota-based Stearns Bank has more than one billion
dollars in assets. MORE PTI R.A.M.