Hume Bank of Hume, Mo.
March 10, 2008 – 2:32 pmHume Bank of Hume Mo. has managed to achieve something Citi and the other big money center banks never will. It’s implosion was not related to subprime home-loans defaulting.
“The demise of the bank is a direct result of alleged improprieties by former bank management, which resulted in past-due loans not being reported and the true condition of the bank being misrepresented,” Eric McClure, Missouri’s commissioner of finance, said in a statement. “Most of these loans were poorly conceived and inadequately serviced, resulting in losses which exhausted the bank’s capital and ultimately resulted in its failure.”
Just good ole fashion ” alleged improprieties” and mismanagement. What a relief. With only” $18.7 million in assets and $13.6 million in deposits as of Dec. 31, according to the FDIC”. The tax paying minions will barely feel a ripple bailin out this one.
Just so you feel better the Security Bank of Rich Hill, Mo., will assume Hume Bank’s insured deposits while the failed bank’s sole office will open Monday as a branch of Security Bank.
2 Responses to “Hume Bank of Hume, Mo.”
The FDIC receives no tax dollars. Insured institutions fund the FDIC.
By A Taxpayer on Apr 15, 2008
A Taxpayer:
Wow, they’ve really duped you. The FDIC has less than a cent on the dollar cash backing assets… the rest are Treasury securities which are simply the taxpayer’s obligation.
The S&L parallel of FDIC (SLIC) simply went bankrupt in the S&L bubble and had to be combined with FDIC.
And yes, taxpayers are still paying for all that.
Are there any government or quasi-government insurance schemes which aren’t simply moral hazards ultimately backstopped by (future) taxpayers? The answer is “no”, as far as anything I’ve ever seen.
By Aaron on Apr 23, 2008