On Friday, September 19, 1991, during the savings and loan crisis, Southeast failed and was seized by the Office of the Comptroller of the Currency.
At that time, the bank was led by Charles Zwick, former director of the Office of Management and Budget during the Presidency of Lyndon B.
[2] In December 1988, the company acquired First Federal Savings and Loan Association of Jacksonville, an acquisition that turned out to be unprofitable.
It not only had fewer branches than longtime intrastate rivals Barnett Banks of Jacksonville and SunBanks of Orlando, but had also been passed by a newcomer from Charlotte, North Carolina; First Union.
In a state driven by consumer banking and small businesses, Southeast was seen as relying too much on large companies.
[1] Amid concerns about its real estate lending and credit administration practices, Southeast entered into a consent decree with the OCC in 1990–91.