Heartland Bank says it will not be reopening bank of texAS
Heartland Capital is announcing that it will stop accepting new customers after the U.S. Federal Reserve decided to halt its purchases of mortgage-backed securities, according to a person familiar with the matter.
The bank announced the decision Wednesday, just before the U-turn in a note to customers.
The announcement was first reported by Bloomberg News.
Heartland said it is “committed to a transparent, open, and accountable business environment” and will continue to monitor the financial condition of its customers.
In a statement, the bank said it would “focus on its core operations and business priorities to improve our operating performance and ensure the safety of our customers.”
“The Federal Reserve is a highly respected institution with a deep understanding of the complex and dynamic world of finance,” the bank wrote.
“The Fed has repeatedly warned that it would be inappropriate to impose a significant haircut on U.N. credit markets in an environment of unprecedented uncertainty and uncertainty that has already led to a significant slowdown in global economic activity.”
In its note to shareholders, the Federal Reserve said it had “stronger data indicating that, given its current global economic environment, the economy is unlikely to fully recover in the foreseeable future.”
The decision comes amid heightened concern that the U,S.
economy is slowing and will be hit hard by a potential Fed hike later this year.
The Fed has been taking steps to cool the global economy and keep the economy from contracting further, such as by limiting interest rates to near zero and reducing the federal budget deficit.
The economy is expected to grow by 2.1 percent in the second quarter, up from a revised forecast of 2.2 percent.
The U.K. also has a large mortgage market and has seen a spike in the number of foreclosures and defaults.
A number of large banks in the U., Canada and Europe have also been forced to shut down and have announced their intention to cut back their lending.
On Wednesday, U.KS. financial regulator David Hilliard said he would be stepping down from the regulator’s oversight of banks.
He said the agency had been “in a very difficult position in terms of oversight of the banks” since the UBS crisis.
In the statement, Heartland confirmed that it has stopped selling mortgage-securities in response to the Fed’s actions, saying it has taken “steps to reduce the exposure to this risk and its potential effects on the financial system.”
The bank said that it expects to resume its sales later this month.
In its statement, a spokeswoman for the bank added that it continues to be a leading bank for corporate, retail and institutional clients.
“We will continue working closely with regulators and our customers to make the best use of our time and resources,” the statement said.