Patani Bank of Cheneyville - Cheneyville, LA Bank Gagal - Episode 331

**Freesia Brindski** (0:01)
Good afternoon, good afternoon. 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 331, 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 you guys are awesome. I love to see you here. So big shout out to Virginia, California, Oklahoma, New York, Texas, Pennsylvania, Illinois, British Columbia, New Jersey, and Florida. And in terms of countries, the United States, Singapore, Sweden, China, Canada, Brazil, the Russian Federation, the United Kingdom, Bangladesh, and Australia. Okay, so today we're going to take a look at, this is going to be the Farmers Bank of Cheneyville, of Cheneyville, Louisiana. So again, this is another bank failure.
So this one was located in Cheneyville, Louisiana.
Another bank did acquire them, and that bank's name is Sabine State Bank & Trust. This particular bank, the Farmers Bank of Cheneyville, this one failed December 17th in the year 2002 So a little bit of information about this, it says on December 17th, 2002, the Farmers Bank & Trust of Cheneyville, in Cheneyville, Louisiana, was closed by the State of Louisiana Office of Financial Institutions 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 approved creditors in order of priority. Again, if you're not an approved creditor, you're not getting paid. 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. Again, if it is not required by law, it's not going to happen. And the receivership estate is deemed terminate. So basically, it goes from being a good bank to a bad bank. Bad bank, it goes to the FDIC. And then from the FDIC, it goes to the new bank for the new bank to take it over and to take over those deposits, those loans and make money off of the interest, which they should because that's how banks make money on that. In terms of the 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 the FDIC Public Affairs Office at 202-898-6993.
In terms of the press release, I have a copy of that. This was released from FDIC, the Federal Deposit Insurance Corporation. It was for immediate release on December 17, 2002
Yeah, December 17, 2002 The immediate contact was David Barr, telephone number 202-898-6992.
It says, the FDIC approves the assumption of the insured deposits of the Farmers Bank & Trust of Cheneyville, Cheneyville, LA. The Board of Directors of the Federal Deposit Insurance Corporation, also known as FDIC, approved the assumption of the insured deposits of the Farmers Bank & Trust of Cheneyville, in Cheneyville, LA by Sabine State Bank & Trust Company of Many, Louisiana. Farmers Bank with total assets of $37 million was closed by the Louisiana Commissioner of Financial Institutions and the FDIC was named receiver. Sabine State Bank has agreed to assume approximately $31.3 million of insured deposits of the failed bank. At the time of closure, Farmers Bank had about $1.8 million in deposits in 48 accounts that exceeded the federal deposit insurance limit. The failed bank's sole office will reopen tomorrow, which was back in 2002, as a branch of Sabine State Bank. Deposit customers of Farmers Bank will automatically become depositors of the assuming bank. All depositors will continue to have immediate access to their insured funds. Customers with more than $100,000 on deposit at the failed bank should contact the FDIC toll free at 1-866-621-9281 and ask to speak with a claims agent. That's not good because it probably means you're screwdigger money. The toll free number will be operational on that day until 5 p.m. Central Standard Time and then they give another time for the following days. Sabine State Bank has agreed to pay the FDIC a premium of 1.35% of the insured deposits being assumed and to purchase approximately $2.2 million of the failed bank's assets. The FDIC as receiver will retain the remaining assets of Farmers Bank for later disposition. The FDIC is unable to provide a loss estimate at this time due to deceptive lending practices at the bank. They're pretty blunt in this one, they should be. Farmers Bank is the 11th FDIC insured failure of that year and the first bank to fail in Louisiana since Southwest Bank Jennings was closed on November 21st, 1997 So the state of Louisiana doesn't have that many closures, especially for back then. Things do change, especially whenever they have hurricanes because hurricane season definitely does affect the financial sector of that state, just because when storms hit, they hit. And sometimes it's hard for people to get access to their money. So that's kind of how that goes. In terms of the acquiring financial institution, it says all secured deposit accounts were transferred to Sabine State Bank & Trust of Mni, Louisiana and were available as usual during regular business hours at the following Sabine State Bank & Trust office, which was located at 603 Front Street in Cheneyville, Louisiana, 71325 Their telephone number is 318-279-2141.