“Didnt they run their own bank?”
They ran a savings & loan, not a bank, which was a cooperative to finance homes. They couldn’t do banking services like today.
Be that as it may, Bailey was, as so many Freepers have pointed out, unable to compete in the global marketplace, and deserved to fold. Potter is the true hero. He made loans available to illegal immigrants and changed them into profitable junk bonds which made fortunes for bank stockholders. He traded on the currency markets and profited from the falling dollar.
If Potter were alive today, he would be the subject of numerous laudatory Wall St Journal and Fortune articles about his aggressive, no-holds-barred business sense. He would be right up there with Jack Welch, George Soros, Warren Buffett, and Sandy Weile.
And when it came out that he pocketed the Bailey’s $8,000. a judge would have ruled in his favor under a new interpretation of “currency eminent domain”.
If Potter was forced to resign, as bank CEO he would get a fat golden parachute bail out worth millions, and be hired on at some other bank as their new CEO. He would also write a book and be on Cavuto and Bartiromo to shill it.
Wake up you sentimental fools. Bailey set Bedford Falls back a hundred years. Let’s hear it for Potter!
If I remember correctly Potter would not loan money to the immigrants because he didn't like his odds of getting his money back. The Bailey Building and Loan, however, was the 1950s version of Countrywide.
Well they offered something like a savings account. Why else was there a run to get their money out?