Not So Secure

This week's casualty was one of the many Nevada based banks that has been having difficulties. Nevada Security Bank of Reno, Nevada (also known as Silverado Bank of Roseville, CA) was closed today. Nevada Security was 36th on the list, just out of the top 25 so you will have to take my word for it. According to the model, they had about a coin flip's chance of survival with ongoing losses and low equity capital. Even in Reno, one should not have taken that bet. This is the 3rd Nevada based bank to fail this year and the 8th since September of 2008.