Hamilton Bank, N.A. - Rajana, FL Bank Gagal - Episode 322

**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 322, and we're gonna take a look at another failed bank. Today's bank is Hamilton Bank in A. This one was located in Miami, Florida. 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 California, Quebec, Illinois, Texas, New Hampshire, Montana, and Tennessee. In terms of countries, Sweden, the United States, Brazil, Canada, Bangladesh, China, India, and Australia. Good to see all of you. Okay, so again, we're going back to our list of the failed banks that have occurred in the United States. And once we get through this list, just like the labor unions that we took a look at, we took a look at pretty much all of the labor unions in the United States, and then we're gonna take a look at the international labor unions or ones that are specifically to different countries like Canada, France, England, things like that. But many of those labor unions, just FYI, whenever they are international labor unions, they are connected, so they are combined, which I'm not a fan of. So there were several labor unions that we discussed that were founded and I would say founded and started and had a larger group here in the United States, I guess is the best way to start. So let me rephrase that. Some of those international labor unions many of them were founded in the United States, but then they had branches out in other countries. So that's probably a better way to describe it. So anyway, let's dive into this one here. So this is Hamilton Bank, NA of Miami, Florida. The acquiring financial institution was Israél Diskon Bank of New York. I wonder what kind of discount they're giving. And this one failed January 11th, 2002 So we're moving into the year 2002 So again, whenever it fails, the date that it's listing is the date that it was actually closed down by the FDIC, as well as other legal entities for the government. So let's take a look at the introduction here. It says, on January 11th, 2002, Hamilton Bank National Association, also known as NA, whenever they abbreviate it, was in Miami, Florida, was closed by the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation, also known as FDIC, and the 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 approve creditors in order of priorities. So again, if you're not an approved creditor, you're not getting money. 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. So again, if it's not required by law, they're not going to do it. So it says made all dividend distributions as required by law and the receivership is deemed terminate. Now let's go to the official press release. There's one that the FDIC has issued. So let me go to that one. Hold on just a moment and I will pull that puppy up. So this one says, hold on a moment. It's being persnickety with me. I don't know why. Why is it doing this? Okay, here we go. So this is an official press release from the FDIC, also known as the Federal Deposit Insurance Corporation. And this was set for immediate release on January 11, 2002 The immediate contact back then was David Barr. Telephone number, or it says, cell is 202-486-9651.
And then the bank's number, I don't know why they have that listed like that, is 305-717-5500.
So it says, FDIC approves the assumption of the insured deposits of Hamilton Bank National Association Miami, Florida. It says, the Board of Directors of the Federal Deposit Insurance Corporation, also known as FDIC, has approved the partial assumption of approximately 50% of the insured deposits of Hamilton Bank National Association of Miami, Florida by Israel Discount Bank of New York, located in New York, New York. The FDIC will make payment directly to the depositors of the remaining insured deposit accounts.
Hamilton Bank with approximately $1.3 billion in assets and $1.2 billion in deposits was closed today by the Office of the Comptroller of the Currency. The FDIC was named receiver. Now that's a lot of money. $1.3 billion in assets and $1.2 billion in deposits. That's quite a bit. It says, Israel Discount Bank will assume all the insured deposits of the Doral, I guess, location, and then Brickell location, and then the West Palm Beach location as well. Several different branches here. It says these branches will reopen on January 14th, 2002 at normal business hours. Israel Discount Bank will assume, hold on a second, will assume the insured transactional deposits, also known as checking savings and money market accounts, of the remaining six branches, including the branch in Puerto Rico. Oh, that's shady. Puerto Rico, they are shady, very shady. Goes on to say, the failed banks remaining six offices will not reopen. Owners of other insured deposit accounts, also known as certificates of deposit and individual retirement accounts, also known as IRAs, at these branches will be paid directly by the FDIC. To minimize disruption, the FDIC will be mailing checks early next week. At the time of closing, Hamilton Bank had about $130 million of potentially uninsured deposits held in approximately 3,600 accounts. Wow, really dumb. Uninsured deposits will not pass to the acquiring bank. Customers with deposits that exceed the $100,000 insurance limits, and customers with safe deposit boxes should contact, ooh, wow, so your safe deposit box isn't safe, should contact the FDIC toll free at 1-877-367-2717 to set up a meeting with an FDIC claims agent or arrange access to safe deposit boxes. Wow, that's kind of shocking because the word safe is in the word safe deposit box. It says claims agents will meet with uninsured depositors during the next two weeks. That was back in 2002 All customers seeking additional information about the failure of Hamilton Bank can either call the toll free number or visit the FDIC's website, which of course is FDIC.gov. The acquiring bank will acquire a nominal amount of Hamilton Bank's assets. These assets consist mainly of cash. Well, that must be nice. The FDIC as receiver will retain the remaining assets for later disposition. Let's see here. The receiver is currently valuing the assets of the failed bank. So you're probably not going to get all your money is what that means. If they're valuing the assets, they're probably not going to give you a lot of bang for your buck, as they say. The FDIC will not have an estimated cost of this resolution to its bank insurance fund, also known as BIF, until that process is completed. Hamilton Bank is the first FDIC insured institution to fail that year, which was in 2002, and the first to fail in Florida since the People's National Bank of Commerce in Miami was closed on September 10, 1999 Again, this is back in 2002, when that was discussed. And then there were two other press releases that came out that I saw listed. So let me go back to that website. Let me pause this for just a moment. OK, I am back. So the second press release, again, is from the Federal Deposit Insurance Corporation. And again, it was for immediate release on January 14, 2002 They have a different media contact for this one. The media contact was Phil Beatty or Batty, however you want to pronounce that B-A-T-T-E-Y, telephone number 202-898-6993.