Another Friday bank closure
Something called the Bank of Whitman, headquartered in Colfax, Wash., was unceremoniously closed by federal regulators yesterday. The operation has been turned over to Columbia Bank, which is based in Tacoma and has branches in both Oregon and Washington. Twelve Bank of Whitman branches won't reopen, but eight others will keep going, at least for now.
It's amazing how routine bank failure has become in this country. The feds are keeping a little list, here. It shows 375 banks closed in the United States in the last three years -- about one every three days.
| Posted at 3:34 AM | Permalink |
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Comments (4)
Deposit insurance coupled with nearly unlimited coverage via brokered deposits amongst multiple institutions is the cause, not the cure. Why accept the risk that is inherent in capitalism when one can just let everybody else accept the risk while keeping the gains to oneself?
Cap deposit insurance, at least where insurance premiums are far below market rates, at 100 grand per natural person across all covered institutions. We could give it a catchy label like "Welfare Reform," which was used by Clinton in the past and was/is hailed as a success.
Let the "Capitalist" hunt for opportunities and enjoy the risk of loss, there is no substitute. The deposit insurance has horribly skewed the capital markets toward residential housing price speculation and away from anything remotely resembling entrepreneurship (by individuals). The current schemes to mimic the GSE's for all things entrepreneurial, through Economic Development agencies and making things pencil out via public subsidies, guarantees failure on a scale that is the rough equivalent to the "collapse" of the "evil empire."
Posted by pdxnag | August 6, 2011 6:27 AM
Cap deposit insurance,... Let the "Capitalist" hunt for opportunities and enjoy the risk of loss, there is no substitute.
Contemplating that, after just yesterday having instructed my broker to wire $60K from my IRA into my checking account because of the volatility of the market the last couple of weeks. And mt bank, like Bank of Whitman, is a small Washington bank with a handful of branches in Washington and Oregon.
Posted by boycat | August 6, 2011 7:36 AM
It's very sad, with all the business closures around town. Even small business are fighting to stay open. A few of my clients have just closed up shop due to not having a strong business plan or the economy. I hope to see the return of long lasting businesses.
Great article btw!
Posted by Donald | August 6, 2011 9:21 AM
Defunct Banks?
Anyone recall the bank in North Portland that used to handle funds for the "Pink People"? You know the Rajneesh's.
Is it still in business?
Posted by Jeff | August 6, 2011 12:09 PM