It looks pretty clear that the U.S. regulators are going to clean house this year — at least with small banks. Hundreds of small banks and credit union will go into receivership in 2009. However, big banks are getting a free ride. First there was the juxtaposition of the kid gloves treatment of too big to fail financial institutions versus the iron fist meted out for the soon to be bankrupt Chrysler and General Motors.
Now, on a day when 4 small banks and one credit union are going bust, the difference in what is happening with big banks versus smaller financial institutions is equally dramatic. The stress tests are complete for the Golden List of 19. But, rest assured, the Feds won’t be doing a damn thing. This is all just for show. Nationalization is now for small institutions only.
So, with our regulators in mind, I give you the distraction of the day. This is for you American Southern Bank, Michigan Heritage Bank, First Bank of Beverly Hills and First Bank of Idaho. (Bank failures 26, 27, 28 and 29) – and for you too Eastern Financial Florida Credit Union.
Long live small banks! All your bank are belong to us: