Metropolitan Savings Bank - Pittsburgh, Pa Bank Gagal - Episode 339

**Freesia Brindisi** (0:01)
Good afternoon, good afternoon. Thank you so much for joining me. This is the podcast, The Endurance of Labor Laws. I am your lovely host, Freesia Brindisi. Today is episode 339, and we're going to take a look at another failed bank. So let's go ahead and dive in. Today we're going to take a look at Metropolitan Savings Bank. This one very much failed. This one was located in Pittsburgh, Pennsylvania. The acquiring financial institution, basically the bank that took them over. I don't know how to pronounce this name, Allegheny Valley Bank of Pittsburgh. If I'm mispronounced that, I apologize. But the Metropolitan Savings Bank, that one failed February 2nd, 2007 So we're missing about three years of data from the FDIC.gov website. So either they don't have it, or it has not been released, or literally a bank did not fail for almost three years, which I find that very hard to believe very much indeed. So we're missing data because there's usually at least one bank that fails every year. So for them to not have any data from 2005 and 2006, and 2005, 2006, and then going a little bit into February of 2007, I find that to be very odd and suspicious. But that's just what I think about that because that's a red flag to me right there. Anyway, this bank failed February 2nd, 2007 In terms of the background information regarding this one, this is directly from the FDIC.gov website. It says on February 2nd, 2007, Metropolitan Savings Bank of Pittsburgh, Pennsylvania was closed by the state of Pennsylvania Department of Banking 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 screwed, you're not getting your money. If you're not considered a priority in the order of priority, you're not going to get your money, you will be screwed out of that.
It goes on to say 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 of state is deemed terminated. Now here's the thing, if it's not required by law, they're not going to do it. So just FYI, be aware of that. Basically, when it comes to federal agencies and state agencies, they're going to do the bare minimum to protect the consumer. That's just how it is. They will not go above and beyond the call of duty. Whereas in the private sector, typically, they will go above. If someone's working in the private sector, they will go above and beyond the call of duty because they care a whole lot more about you than the federal government. That's just how it is. If you need an example of that, take a look at the difference between a private hospital and basically the VA. The VA treats our veterans very horrible, and it's been going on for a long time, but yet it's like people think, well, who are you to question the government? Well, we are citizens of the United States. We have every right to question our government, especially if it's not treating our citizens very well, especially those that were made promises. That's just how that is. 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 David Barr at 202-898-6992.
And I do have a copy of that press release. And again, this is for immediate release. This was back in 2007 So this was released by the Federal Deposit Insurance Corporation, also known as FDIC. This was released February 2nd, 2007 Again, the media contact is David Barr, 202-898-6992.
And this time he gave his email address. So it's dbar, says d-b-a-r-r at fdic.gov. Goes on to say, FDIC approves the assumption of the insured deposits of Metropolitan Savings Bank of Pittsburgh, Pennsylvania. The Board of Directors of the Federal Deposit Insurance Corporation, also known as FDIC, approved the assumption of the insured deposits of Metropolitan Savings Bank of Pittsburgh, Pennsylvania by Allegheny Valley Bank of Pittsburgh, Pennsylvania. Sorry, they kind of messed that up. So it says, let me reread that, because whoever wrote this did not do a good job. So basically, the Board of Directors approved the assumption of the insured deposits of Metropolitan Savings Bank located in Pittsburgh, Pennsylvania. The bank that was approved was Allegheny Valley Bank of Pittsburgh, located in Pittsburgh, Pennsylvania. Whoever wrote this is an idiot and a moron. They need to work on their English speaking skills. Oh, well, no, just writing skills. They probably wrote this as in a way that they speak. So their speaking skills are probably not that good. So anyway, it's called write a draft first, then edited it. It goes on to say Metropolitan Savings with total assets of approximately $15.8 million.