Loans Expert

Since Franklin Bank customers became Prosperity Bank customers Nov. 7, depositors have not seen a change in their banking, but loan customers are confronting, in some cases, major problems.

Those hurting, in particular, are customers with home loans, sub-contractors with lines of credit and customers in the construction industry who depend on monthly draws for work performed.

The source of the pain is that Prosperity Bancshares, Inc. assumed the deposits of all 46 branches of Houston-based Franklin Bank, including the location in Kingsland, but they did not assume the loans.

WASHINGTON (AP) — The Federal Reserve is providing more details about when it will make billions of dollars in short-term loans available to squeezed banks.

The loans — part of an effort to ease intensifying credit stresses — are made available to banks through auctions. The Fed — in coordination with other countries’ central banks engaged in similar efforts — laid out dates that it will conduct the auctions through the rest of this year.

To help ease credit stresses, the Fed announced Monday it will provide as much as $900 billion in cash loans to banks. Most of the loans are for 28-days and 84-days. Some are shorter — 13-day and 17-day loans.