Guaranty’s Collapse May Hit Stakes of Icahn, Rowling
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Guaranty Financial Group Inc., the Texas bank spun off in 2007 by a forest products company, may become the biggest lender to collapse this year, wiping out investments by billionaire Carl Icahn’s funds and Omni Hotels owner Robert Rowling.
Guaranty can’t raise capital demanded by regulators and will probably fail, according to a filing yesterday with the Securities and Exchange Commission. The Office of Thrift Supervision has taken over functions from the board, directed the bank to turn itself over to the Federal Deposit Insurance Corp. and is pursuing transactions likely to wipe out shareholders, the Austin-based company said.