Bank of Alamo - Alamo, TN Bank Gagal - Episode 330

**Freesia Brindski** (0:01)
Good morning, good morning. Thank you so much for joining me. This is the podcast, The Endurance of Labor Laws. I'm your lovely host, Freesia Brindisi. Today is episode 330, and we're going to take a look at another failed bank. We're going to take a look at a bank that failed in Alamo, Tennessee. But before we dive in, let me give a big shout out to my listeners, because as usual, you guys are awesome. So a big shout out to Oklahoma, California, New Jersey, and Michigan. In terms of countries, the United States, Singapore, the United Kingdom, Germany, and Turkey. Okay. So today we're taking a look at the Bank of Alamo in Alamo, Tennessee. This one failed and completely closed November 8th, 2002 It was located in Alamo, Tennessee, and this one was not acquired by any bank. So again, that means that this bank failed so bad that another bank in the United States was not willing to take it over. They were not even willing to take over their loans or their interest rates to make money off of it. So it just completely failed. So this one, it went from being a good bank to a bad bank to being under the rule of the FDIC. And then the FDIC and this bank basically terminate completely the entire bank. And it's not around anymore, at least this particular location. So that's just kind of how it is when bank managers and board members of a bank screw up really bad. It's like I've said in times past, these banks do not fail overnight. So what that means is that it took time for this to fail. So what I'm saying with that is that continuous bad decisions were being made by the people in charge of the board of that bank and also the bank managers and the branch managers of that bank, excuse me, and they were continuously making bad financial decisions. And it affected everybody that did business at that bank. And you're only insured up to a certain amount via the FDIC, because the FDIC is not going to be on the hook for everything. And the reason for that is because if the FDIC was on the hook for everything, then these bad bankers and these bad banks and these bad board members would get away with a lot of money. So basically people could come in, suck the bank dry of its money, and then not care about the depositors because like, oh, well, the FDIC will take care of it. Because that's kind of what's going on with these failed banks. These failed banks, whenever they fail, it is always the result of bad people being in charge of a bank. Because again, bad decisions, one bad decision doesn't completely ruin a bank, not like this. But if you do it continuously, then that's why a bank fails. And so I've seen this at times past where banks, if they see something going on, they can fix it immediately. But if they do not fix it immediately, their bank will fail. And that's what happened here. Every single bank on this list is a bank that was run by stupid people, greedy people that valued their money, their pay more than the depositors. They valued it more than doing what's right. So they cared more about their pay, their benefits and their retirement. And then they just kind of closed up shop and they just kind of pushed the hockey puck over to the FDIC. And because the FDIC by federal law is required to help out with this, but only to a certain point, these bank managers and these branch managers and these board managers or board executives, they never go to federal prison, at least that I've seen. And they should. If they ruin a bank like this and they suck at drive its money, that's fraud. That's fraud at embezzlement. And so we have seen this in times past, but it's like these people never go to jail. The only time I see people go to jail with things like this is if they are, if they are like on that show that's called, what's it called? American Greed. So my favorite shows. But again, it's one of those things that a lot of these people that run these banks, they have a financial background or they have a financial degree, but they don't have real world experience. Like they don't really understand how to live everyday life because that's basically where everybody else is. In terms of how they deal with the bank and things like that. Because I guarantee you, if the depositors had known that this bank was going to fail, they would have pulled out all of their money.