Guaranty Financial Struggling to Survive

Guaranty Financial Group, the parent company of Guaranty Bank, continues to struggle to survive. Last month, Guaranty Financial said that it was unlikely that they could stay in business. Now the company is even less confident.

Considering that 77 banks have already failed, it wouldn’t be too shocking if Guaranty Financial became another victim of the global economic downturn combined with unsafe business decisions based on greed rather than sound judgment. Just last week, federal regulators shut down Colonial BancGroup — a bank with $25 billion in assets.

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Guaranty Financial has more than 150 branches in California and Texas. While it is definitely large, its $15 billion in assets makes it decidedly smaller than Colonial BancGroup. Right now, federal regulators are trying to help Guaranty Financial find a buyer or more capital. If that fails, many industry experts believe that the company could reach the end of the line as soon as this coming Friday.