Dollar Tabungan Bank - Newark, NJ Bank Gagal - Episode 335

**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 335, and we're going to take a look at another failed bank. But before we dive in, let me give a big shout out to my listeners because as usual, you guys are awesome. I love to see you here. So a big shout out to Virginia, California, Oklahoma, New York, Texas, Pennsylvania, Illinois, British Columbia, New Jersey, and Florida. In terms of countries, the United States, Singapore, Sweden, China, Canada, Brazil, the Russian Federation, the United Kingdom, Bangladesh, and Australia. Okay. So again, we're going to take a look at another failed bank. Today, we're going to take a look at Dollar Savings Bank. This one was located in Newark, New Jersey, and this one did not have a bank that acquired them. So this one, whenever it says there's no acquirer, that means that their financial situation was so bad that there was not another bank in the United States that was willing to help them or to take it over. So that means it was just really bad. And the FDIC just had to handle it themselves, which was probably a great stress to them because it puts a stress on the Bank Insurance Fund, also known as BIF. But this bank closed, we're moving into the year 2004, so we're moving right along. This one failed and closed February 14th in 2004
In terms of the information behind this one, the data on it from the FDIC, it says on February 14th 2004, Dollar Savings Bank of Newark, New Jersey was closed by the Office of Thrift Supervisor. Wow, they must really like dollars. It reminds me of like Dollar General or Dollar Tree because it's Dollar Savings Bank and they were closed by the Office of Thrift Supervision. That's interesting and the Federal Deposit Insurance Corporation, FDIC was named receiver. As receiver, the FDIC is charged with winding up the business affairs of the failed financial institution. This includes the disposition of assets and liabilities of the failed financial institution and payment of dividends to approved creditors in order of priority. Again, if you're not an approved creditor, you're not getting paid. And if your priority is not considered a priority to the FDIC, then you may not get paid or not get paid all, I guess get repaid all that you're owed. 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 terminated. In terms of a press release, it says the FDIC has issued a press release about the institution's closure. If you represent a media outlet and would like information about the closure, please contact Elizabeth Ford at 202-898-6993.
This one did not list David Barr as the contact. That's interesting.
I have the actual press release. This was released by the FDIC and again, it was an immediate press release. This was released February 14th, 2004 Again, the media contact is Elizabeth Ford, 202-898-6993.
It says FDIC approves the payout of the insured deposits of Dollar Savings Bank of Newark, New Jersey. It says the Board of Directors of the Federal Deposit Insurance Corporation, FDIC, approve the payout of the insured deposits of Dollar Savings Bank of Newark, New Jersey. The bank was closed by the Office of Thrift Supervision and the FDIC was named receiver. Dollar Savings Bank had total assets of $12.3 million and total deposits of $9.8 million with $162,000 exceeding the Federal Deposit Insurance Limit. The FDIC will mail checks in the next few days, this is back in 2004, to the customers of the failed bank for the amount of their insured deposit. So again, if their deposit is not insured, they're not getting their money. So basically anything over $100,000, they're not going to get paid. It says customers with more than $100,000 on deposit at the failed bank should contact the FDIC toll free at 1-877-393-1848.
So again, if they're telling you to contact the FDIC and it's a toll free number, you're basically screwed. It says the toll free number will be operational on that day until 4:30 p.m. Eastern Standard Time and from 8:30 a.m. to 4:30 p.m. Eastern Standard Time thereafter, Monday through Friday. This of course is back in 2004 when this occurred. Dollar Savings Bank is the first FDIC insured institution to fail in that year and the first institution failure since Pulaski Savings Bank of Philadelphia, Pennsylvania was closed on November 14, 2003 So it's kind of those things that they're making a point that we don't have that many closings or failures and this is the first of the first blah, blah, blah. I don't think that really matters because a failure is a failure and it looks bad on the United States. It also looks bad on our financial sector and our banking sector. So here's the thing, this bank, it didn't fail by a lot, but that tells me that there was something else going on possibly with their loans or with their audits that warranted for them to be closed. And what's interesting is that no one took them over. There wasn't a single healthy bank in the United States during this time that wanted to help them out. So that really says a lot. That says that these other banks were like, we're not touching your books. I mean, their books were so bad, like we can't handle that. Just let the FDIC handle it. So your tax dollars are paying for these idiots' mistakes basically.