***Feds ASKING Healthy Banks to Accept Bailout Funds. YOUR FUNDS AT WORK ***Submitted by truthsanityalways on Wed, 11/12/2008 - 15:13
I live in a small midwest rural community of about 25,000 people. We have a bank in town (among other banks) that is locally owned and probably makes the mortage laons for 70% of the homes here. Here is an article that was on the front page of our newspaper:
BANKS CONSIDER WORKING WITH FEDS
Hod Kosman didn't figure his bank, the Platte Valley Bank in Scottsbluff, would need rescuing by the federal government. It has plenty of capital and good loan demand from it healthy regional economy.
"We figured it was for the bigger banks with other issues," especially those with problems related to subprime mortgage loans, Kosman said of the $700 billion bailout.
But then he got a call from regulators at the Federal Reserve, who suggested Kosman consider applying for what they called the Capital Purchase Program.
"They said they would like all of their good banks to participate," Kosman Said.
In fact, Federal Reserve officials suggested Platte Valley Bank use a federal investment of between $4.5 million and $13 million to acquire another bank that is "a little bit under the Weather," Kosman said.
"We may not have looked at this (acquisition) quite as strongly as we would with these dollars available. It probably did pique our interest in this particular case."
The federal government is encouraging Platte Valley Bank and hundreds of other financially solid banks to apply for injections of money.
Many will do so; others are conSIderING it. Some, though, are resisting because participation would make the government partial owner, and give it a say in the operation of the banks." .......
THIS IS SO SICKENING.