Friday, Dec. 31, 2010 | 2:05 a.m.
The parent company of the failed SouthwestUSA Bank filed for Chapter 7 bankruptcy liquidation Thursday in Las Vegas.
SouthwestUSA was closed by regulators July 23, and its lone branch was taken over by Plaza Bank of Irvine, Calif.
Thursday’s bankruptcy filing by SouthwestUSA Corp. listed assets of $25,751 against liabilities of $8 million.
The biggest creditor is Wells Fargo Delaware Trust Co., trustee for holders of $7.2 million in trust preferred securities. These securities are used by banks to raise capital.
Thursday’s filing said SouthwestUSA Corp. lost $819,000 in 2008, $20.9 million in 2009 and $8.9 million this year.
In similar bankruptcies of the parent companies of two other failed Nevada Banks — Silver State Bank and Community Bank of Nevada — losses by the banks yielded hefty tax refunds.
The FDIC is fighting with Silver State Bank’s bankruptcy trustee over ownership of the tax refunds for that company.
Like many banks, SouthwestUSA was hit hard by loan losses related to troubles in the Las Vegas real estate market.
SouthwestUSA was unique in that it operated as a “private bank” with personalized service.
That was reflected in Thursday’s bankruptcy filing, which listed an unusual asset: numerous pieces of art that in 2008 had a market value of more than $90,000.
The art includes Roy Purcell sketchings and John Cox oils on linens. The art, now in storage, may be sold or auctioned with the proceeds going to creditors.
Its current value is unknown, the bankruptcy filing says.
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