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Press Release
New York State Banking Superintendent Closes LibertyPointe Bank

March 11, 2010

New York N.Y.: Richard H. Neiman, Superintendent of Banks for New York State, announced that the Banking Department closed LibertyPointe Bank in New York City, citing inadequate capital, and immediately appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.

As receiver, the FDIC has entered into a purchase and assumption agreement with Valley National Bank, Wayne, New Jersey to assume all deposits of the bank. Depositors of LibertyPointe Bank automatically become depositors of Valley National Bank effective immediately.

Superintendent Neiman took possession of the business and property of LibertyPointe Bank in order to protect depositors and the public, following LibertyPointe Bank’s failure to adequately address the problems outlined in a July 16, 2009 Cease and Desist Order and becoming undercapitalized. The consent order is available at http://www.dfs.ny.gov/banking/ea090716.pdf.

LibertyPointe Bank, which has three offices (one in Manhattan and two in Brooklyn), had total assets of approximately $216.5 million and total deposits of approximately $209.5 million, as of December 31, 2009.

“It is a top priority of the New York State Banking Department to protect the deposits of customers of New York State banks and ensure the safety and soundness of the banking system in the state,” said Neiman. “We want to assure New York consumers that we will be working with our partners at the FDIC to ensure a seamless transition.”

Customers who have questions about today's transaction can call the FDIC toll-free at 1-800-591-2820.   The phone number will be operational this evening from the time of closing until 9:00 p.m., Eastern Standard Time (EST); on Friday from 9:00 a.m. to 6:00 p.m., EST; on Saturday from 9:00 a.m. to 3:00 p.m., EST; on Sunday from 9:00 a.m. to 3:00 p.m., EST; and thereafter from 8:00 a.m. to 8:00 p.m., EST.   Interested parties also can visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/libertypointe.html.

The U. S. Congress created the Federal Deposit Insurance Corporation (FDIC) in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 8,012 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

The New York State Banking Department is the regulator for all state-chartered banking institutions, virtually all of the United States offices of international banking institutions, all of the State’s mortgage brokers, mortgage bankers, check cashers, money transmitters and budget planners. The aggregate assets of the depository institutions supervised by the Banking Department are more than $2.4 trillion.

In addition to regulating banking institutions, the Banking Department is active in informing and educating all New Yorkers on banking matters. To contact the Banking Department, please call 1-877-BANK-NYS or visit our Web site at www.dfs.ny.gov.

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