Bank of Sierra Blanca - Sierra Blanca, TX Bank Gagal - Episode 323

**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 323, and we're going to talk about the Bank of Sierra Blanca. That is another bank failure that occurred in the year 2002 But before we get started, let me give a big shout out to my listeners, because as usual, you guys are awesome. So a big shout out to California, Quebec, Illinois, Texas, New Hampshire, Montana, and Tennessee. In terms of countries, Sweden, the United States, Brazil, Canada, Bangladesh, China, India, and Australia. Okay, so this is called Bank of Sierra Blanca. It was located in Sierra Blanca, Texas. The acquiring financial institution is the Security State Bank of Pecos, or PECOS, it's P-E-C-O-S. And this particular bank, the Bank of Sierra Blanca, it completely failed and closed January 18th in the year 2002 So let's go to the FDIC.gov website and take a look at this puppy here. And let's see, it says, on January 18th, 2002, Bank of Sierra Blanca in Sierra Blanca, Texas was closed by the Texas Department of Banking and the Federal Deposit Insurance Corporation, also known as FDIC, and the FDIC was named as Receiver. As Receiver, the FDIC is charged with winding up the business affairs of the failed financial institution, again, the FDIC, they're kind of reusing their words, but I understand why. It says, this includes the disposition of assets and liabilities of the failed financial institution and payments of dividends to approved creditors in order of priority. So again, if you're not an approved creditor, you're probably not gonna get paid, and also it depends on your, how they see you as a priority. If you're not a priority, you're probably not gonna get paid. So it says, the FDIC as Receiver has taken all necessary actions to conclude the affairs of the failed financial institution, made all dividend distributions as required by law, and the receivership estate is deemed terminate. So again, if it's not required by law for them to pay you, then you're probably not gonna get paid. Because the FDIC is gonna try and save money. That's just how it is. Because it's a government agency. So don't really, I don't wanna say don't trust, but don't expect them to care when you're not really that important to them to a certain extent. So that's just what I'm trying to say. In terms of the press release, there was a press release that was released by the FDIC, also known as the Federal Deposit Insurance Corporation. And this was for immediate release on January 18th, 2002 Again, the media contact back then was David Barr, telephone number 202-898-6992.
It says the FDIC approves the assumption of the insured deposits of Bank of Sierra Blanca in Sierra Blanca, Texas. The Board of Directors of the Federal Deposit Insurance Corporation, also known as FDIC, approved the assumption of the insured deposits of the Bank of Sierra Blanca in Sierra Blanca, Texas by the Secretary State Bank of Pecos in Pecos, Texas. Bank of Sierra Blanca, with $10.8 million in assets and $9.8 million in total deposits, was closed on that day by the Texas Banking Commissioner and the FDIC was named receiver. The Security State Bank of Pecos has agreed to assume approximately $9.1 million of the insured deposits of the failed bank. At the time of closure, the Bank of Sierra Blanca had about $720,000 in deposits that exceeded the federal deposit insurance amount. Due to the federal holiday on Monday, which was back in this date, 2002, the failed bank's sole office will reopen on Tuesday, January 22nd.
As a branch of the Security State Bank of Pecos, deposit customers of Bank of Sierra Blanca will automatically become depositors of the assuming bank. The Security State Bank of Pecos has agreed to pay the FDIC a minimum of $218,000 to assume insured deposits and to purchase approximately $3.5 million of the failed bank's assets. The FDIC as receiver will retain the remaining assets of Bank of Sierra Blanca for later disposition. The FDIC estimates the cost of this transaction to the Bank Insurance Fund, also known as BIF, to be about $1.4 million. Bank of Sierra Blanca is the second, now this is back in 2002, the Bank of Sierra Blanca is the second FDIC insured institution to fail that year and the first in Texas since East Texas National Bank of Marshall was closed on July 9, 1999 So Texas overall does pretty good, but they are not exempt from problems because it really depends on who is running your bank, what kind of financial decisions they are making, that is very important. In terms of the acquiring financial institution, it says all secure deposit accounts have been transferred to the Security State Bank of Pecos, of Pecos, Texas, and were available as usual during regular business hours. The new branch was named Trans Pecos Banks of Sierra Blanca. The location of the branch is Sierra Blanca Road and State Highway 1111 in Sierra Blanca, Texas. That's an interesting address. For telephone number, it says 915-445-9000.