Scalping on the Frontier (FTBK)

Posted in pre-market 
May 3rd, 2010

Frontier Financial Corporation (NASDAQ: FTBK) is getting crushed this morning after weekend reports that government regulators shut down Frontier Bank, of Everett, WA on Friday.  Regulators sold its assets to San Francisco-based Union Bank.

The bank denied buyout rumors last week: “Management of Frontier Financial Corporation recently learned of rumors on the Internet on April 26, 2010, that an investment group called Infinite Freedom Foundation was in the process of making a bid for Frontier…. to the company’s knowledge there is no basis for the rumor.”

We originally had shares down over 80% this morning but shares are down almost 61% at $1.40 on 360,0000 shares at 8:25 AM EST.  If it is being closed, it is surprising that the drop off is not far worse.  Shares were actually halted at 8:13 AM EST.


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