First Mariner Bank Auction Set for April

March 13, 2014

A bankruptcy judge approved First Mariner Bancorp's request to auction off its Baltimore bank quickly, a process that drew heated objections from creditors and the U.S. Trustee, the Baltimore Sun reported today. Bankruptcy Judge David E. Rice set an April 7 deadline for bids on First Mariner Bank, with the auction to be held three days later if any bids come through. In an order filed over the weekend, he wrote that the bank's parent company "articulated good and sufficient reasons" for the timing and other procedures. First Mariner filed for bankruptcy protection Feb. 10, capping its years-long struggle to get back on solid footing after residential loans soured during the housing bust. It has operated under a federal regulatory order to increase its capital level since 2009, and it was unable pay millions of dollars in interest payments due in December on trust-preferred securities.

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