Saturday, October 31, 2009
Does Tiny Tim Geithner have any idea what is going on?
It certainly does not appear to be the case in Illinois banking. There was Tiny Tim in the morning handing out a bright shiny $50 million grant to Park National Bank and in the evening there was the FDIC closing another insolvent bank, Park National Bank.
The timing was awkward. The government shut down $4.7 billion-asset Park National on the same day that its community development arm, Park National Bank Initiatives, received $50 million from Treasury Secretary Timothy Geithner at a ceremony in Chicago. That money is intended to stimulate investment in low-income communities on such projects as charter schools, health clinics and stores.Oops! And for the record, does anyone expect US Bancorp to make any local low income community investments? I didn't think so.
The 30 branches of Park National will reopen Saturday under the banner of U.S. Bancorp. The failure of the FBOP banks is expected to cost the Federal Deposit Insurance Corp. about $2.5 billion.
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