Treasury to Invest in Small Community Banks
On October 18th, 2008 hacksaw1980 says:
``The headline in the local paper that everybody's going to read is, `Local Bank Seeks Government Assistance,''' Fine said in an interview. ``That doesn't look real good to the folks in the local towns.''
October 17 (Bloomberg) -- Community banks that Federal Reserve Chairman Ben S. Bernanke calls a key link between financial markets and the U.S. economy face a longer wait for government aid than their bigger competitors.
The Treasury is urging small and regional banks to contact their primary regulator for details on how to access $125 billion in funds -- half of a $250 billion sum set aside to recapitalize the nation's lenders. Five federal regulators plus the states, meanwhile, are waiting for more guidance from the Treasury.
Here is the Link:
``I don't think that when they rolled this out they understood there would be all these problems,'' said former Treasury official Wayne Abernathy, now an executive vice president at the American Bankers Association in Washington. ``The sooner they can get the details out, the better.''
Treasury Secretary Henry Paulson's aides are working to standardize procedures for putting capital into thousands of banks of varying size, charter and health. The voluntary program will serve as triage for the banking system -- giving some institutions a lifeline of money, while rebuffing weaker ones.
My savings is in a locally
My savings is in a locally owned and operated credit union. Hopefully, they're safe from the government's greedy hands.
We recently opened an account
in our small privately owned community bank, in addition to our large favored bank account, just in case....Not sure where to put any money these days though. We have some in stock, some in CDs. Not easy to find silver and gold, and we're looking into self-directed IRAs and land purchases. Any other advice?
We're in the same boat.
We just opened some accounts in a small local bank just for the Hampton Roads area. It's not even a regional bank, just local. I sure hope they stear clear of all this mess.