Fall Out From an FDIC Seizure |
| Published: September 26, 2008, 11:55 am |
| Tags: daily news, politics, bailout, bank failure, banking, fdic, jp morgan chase, stocks, wamu, washington mutual |
|
In December, 1986, the bank in my hometown in Colorado was closed by the FDIC for some irregular lending practices. My mother banked there, but as a single mom with three kids, her account didn’t have a lot in it when the FDIC said it could take 30 days to release assets in the bank. However, her employer, a construction firm, was a partnership and one of the partners was a huge shareholder in the bank. The company had its accounts at the bank. And so, one week before Christmas, my mother found herself out of a job because of a banking scandal. I therefore have some fairly strong feelings about banking bailouts. In 1986, nobody offered to bailout Buena Vista Bank & Trust. The biggest employer in town, outside of the state government (prison) and the school district just about went belly-up. They fired or laid off dozens of employees. The ones that were fired were told they did so to make the employees eligible for unemployment. One was an accountant with 18 years experience; [ Full article ] |
 Blog link
|
No Comments...