McCain-connected Nevada bank fails

HENDERSON, Nev., Sept. 6 (UPI) -- U.S. banking officials have shut down a Nevada bank whose board once included the son of Republican U.S. presidential nominee John McCain.

Silver State Bank of Henderson, Nev., became the largest of 11 banks to fail so far this year in the wake of the credit crunch, the Wall Street Journal reported Saturday.

Andrew McCain, the adopted son of the U.S. senator from Arizona from his first marriage, is not accused of any wrongdoing in connection with the bank closure. The newspaper said Andrew McCain resigned from Silver State's board July 26 citing "personal reasons."

McCain, 46, is the chief financial officer of Hensley & Co. of Phoenix, the family-owned beer distributor. His father's presidential campaign issued a statement Friday saying: "Silver State, like many regional banks, is struggling in the midst of very difficult economic conditions. Andy realized after joining the Silver State board in April that the bank needed directors who could devote a great deal of time and attention to guiding the bank through this challenging time."

Regulators said the lender was overexposed to risky real-estate loans. Its failure will cost the already-strained Federal Deposit Insurance Corp. $450 million to $550 million, the Journal said.