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Community Banks Rejecting Fed Bailout Money
Newsmax / The Associated Press ^ | January 29, 2009

Posted on 01/29/2009 9:31:00 PM PST by 2ndDivisionVet

A small but growing number of community banks are backing out of the government's bailout, which they see as fraught with hidden strings and government interference.

About 20 banks so far that applied for or had been approved to receive about $1 billion combined in taxpayer money have reversed course in the past month and refused to take the money. That's just a fraction of the hundreds of billions of dollars the government already has spent, but it shows that taxpayers aren't the only ones anxious about the financial bailout.

"The government's going to own a good portion of these banks," said David Heintzman, president of Stock Yards Bank & Trust in Louisville, Ky. The bank recently turned down $43 million in approved bailout money.

After Congress approved the $700 billion bailout in October, the government gave banks only a few weeks to decide whether they wanted to take part in the government investment program. Many applied to get a foot in the door, in case predictions of an economic collapse came true.

"We drank the Kool-Aid," said Michael Ross, president of Fidelity Bank in Dearborn, Mich., which applied for about $29 million in November.

But as details emerged, the deal didn't look so good. For Fidelity, taking the money would mean the government would have owned about 25 percent of the company's outstanding stock. Then Congress and the White House could start calling the shots, Ross said. He remembers the government's failure overseeing Freddie Mac and its sister company, Fannie Mae, the two housing companies so badly mismanaged they were taken over by the Bush administration.

"These are the guys who brought you Hurricane Katrina. These are the guys who were supposed to be watching Fannie and Freddie," Ross said.

(Excerpt) Read more at newsmax.com ...


TOPICS:
KEYWORDS: 111th; agenda; bailout; banking; congress; economy; obama; stimulus
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Amazing!
1 posted on 01/29/2009 9:31:00 PM PST by 2ndDivisionVet
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To: 2ndDivisionVet

Rejecting a deal with the Devil.

Maybe I will move my accounts to one of these very shrewd institutions.


2 posted on 01/29/2009 9:33:10 PM PST by freedumb2003 (Sexual Kahlua)
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To: 2ndDivisionVet

I see nothing wrong with this — only the banks in dire need would agree to those terms. As it should be.


3 posted on 01/29/2009 9:33:18 PM PST by durasell
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To: 2ndDivisionVet

I’m very glad to hear this. I’d like to know the names of these institutions, I’d be interested in putting my accounts there.


4 posted on 01/29/2009 9:35:39 PM PST by Marie2 (Ora et labora)
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To: Marie2

The names are in the part of the article at the link.


5 posted on 01/29/2009 9:43:23 PM PST by 2ndDivisionVet ("Don't confuse what you got a right to do with what's right to do." Bill Bennett)
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To: 2ndDivisionVet

remember when paulson called the big banks into conference? and said, you will take the money.

only the ceo of wells fargo objected.


6 posted on 01/29/2009 9:43:33 PM PST by ken21 (the only thing we have to fear is fdr deja vu.)
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To: ken21

So when the government owns some of the banks, and the government sets the banking rules for all of the banks... are they going to play nice with those banks that didn’t drink the kool-aid?

I think there will be a few ‘fairness’ rules introduced into the banking rules that just happen to benefit government-owned banks.


7 posted on 01/29/2009 9:49:18 PM PST by GulchBound (Who owns you?)
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To: GulchBound

The gubmint sets many of the rules now — for banks insured by the FDIC.

The gubmint also sets rules for food and drug safety, cars, toys, airplanes, broadcasting, etc. etc.


8 posted on 01/29/2009 9:57:21 PM PST by durasell
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To: PAR35; TigerLikesRooster; bamahead; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; ...
*Ping!*
9 posted on 01/29/2009 9:57:37 PM PST by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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The Money, Banking, and Financial Markets Ping List.

"Money, not morality, is the principle commerce of civilized nations."
—Thomas Jefferson

FR Keywords: moneylist, bankinglist, financelist

Please tag all relevant threads with the aforementioned keywords.

This can be a very high-volume ping list at times.

Ping list jointly pinged by rabscuttle385 and TigerLikesRooster.

To join the ping list:
FReepmail rabscuttle385 with the subject line add  moneylist.
(Stop getting pings by sending the subject line drop moneylist.)


10 posted on 01/29/2009 9:57:51 PM PST by rabscuttle385 ("If this be treason, then make the most of it!" —Patrick Henry)
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To: 2ndDivisionVet

They’re smart, like Ford. While rejecting Barry’s bail and control, they earn the respect and business of the American people.


11 posted on 01/29/2009 10:06:01 PM PST by taraytarah
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To: 2ndDivisionVet

Good. Not every bank is insolvent.


12 posted on 01/29/2009 10:11:25 PM PST by eyedigress
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To: taraytarah

I agree. I need a new truck and Ford gets the nod.


13 posted on 01/29/2009 10:15:08 PM PST by eyedigress
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To: Marie2

From the article:

The following banks have announced they no longer planned to participate in the government-sponsored bank bailout program:

_ American River Bankshares, of Rancho Cordova, Calif., said it would not accept $6 million

_ Chemical Financial Corp., of Midland, Mich., said it will not accept $84 million

_ California United Bank, of Encino, Calif., said it will not accept $8.4 million

_ Dime Community Bancshares Inc., of Brooklyn, N.Y., said it will not accept $77.3 million

_ Dearborn Bancorp Inc., of Dearborn, Mich., withdrew its application for $29 million

_ Eagle Financial Services, Inc., of Berryville, Va., said it will not accept $10 million

_ First Capital Inc., of Corydon, Ind., said it would not accept bailout money

_ Friendly Hills Bank, of Whittier, Calif., said it would not accept $1.6 million

_ Glacier Bancorp Inc., of Kalispell, Mont., said it would not accept bailout money

_ Legacy Bancorp Inc., of Pittsfield, Mass., said it would not accept $20 million

_ Liberty Bancorp Inc., of Liberty, Mo., said it would not accept $8.5 million

_ Mechanics Bank, of Richmond, Calif., said it withdrew its application for $60 million

_ NBT Bancorp Inc., of Norwich, N.Y., said it would not accept bailout money

_ New York Community Bancorp Inc., of Westbury, N.Y., said it would not accept $596 million.

_ OptimumBank Holdings Inc., of Fort Lauderdale, Fla., said it would not accept $4.6 million

_ Pamrapo Bancorp Inc., of Bayonne, N.J., withdrew its application for $11 million

_ Pacific Continental Corp., of Eugene, Ore., said it would not accept $30 million

_ Smithtown Bancorp, of Hauppauge, N.Y., said it would not accept $37.8 million

_ S.Y. Bancorp Inc., of Louisville, Ky., said it would not accept $43 million

_ Tompkins Financial Corp., of Ithaca, N.Y., said it would not accept $15 million


14 posted on 01/29/2009 10:17:23 PM PST by LibertyRocks ( http://LibertyRocks.wordpress.com ~ Pro-Palin & NObama Gear : http://cafepress.com/NO_ObamaBiden08)
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To: 2ndDivisionVet

There are still a lot of intelligent people in the US left running businesses, thank goodness. Once again, Chick Fillet chooses makes headline....they cut prices on their combos.....profits are up 4q 2008.


15 posted on 01/30/2009 1:58:41 AM PST by RSmithOpt (Liberalism: Highway to Hell)
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To: freedumb2003
My outfit rejected the money too. We don't need it/want it.

The Feds are trying to strong arm banks now to get them to take the money. It's a control issue not a liquidity issue now.

16 posted on 01/30/2009 4:13:03 AM PST by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: freedumb2003
My outfit rejected the money too. We don't need it/want it.

The Feds are trying to strong arm banks now to get them to take the money. It's a control issue not a liquidity issue now.

17 posted on 01/30/2009 4:13:57 AM PST by Jimmy Valentine (DemocRATS - when they speak, they lie; when they are silent, they are stealing the American Dream)
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To: 2ndDivisionVet
Either a bank gets bailout welfare and they're publicly shamed every time they buy a corporate jet

OR they handle their finances responsibly and earn the right to run their business as they see fit.

Good incentive pattern...

18 posted on 01/30/2009 5:20:19 AM PST by GOPJ (What's caused 19 deaths, makes travel difficult, and won't melt til April? Global Warming.FR:Dentist)
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To: Jimmy Valentine

You take “daddy’s” money, you live by his rules...


19 posted on 01/30/2009 5:21:52 AM PST by GOPJ (What's caused 19 deaths, makes travel difficult, and won't melt til April? Global Warming.FR:Dentist)
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To: 2ndDivisionVet

Banks turning down money.

Time to break out the ice skates.

I guess there is hope for this country.


20 posted on 01/30/2009 5:33:20 AM PST by metmom (Welfare was never meant to be a career choice.)
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