Pulaski Tabungan Bank - Philadelphia, Pa Bank Gagal - Episode 334

**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 334, 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 California, New Jersey, New Hampshire, New Mexico, Oklahoma. In terms of countries, the United States, Singapore, Vietnam and the Republic of Moldova. Good to see you guys. Moldova, that's a fairly new one to be listening in. So we love to see new listeners and we love you guys very much. Do feel free to reach out to us anytime. We love to help our listeners here. So today we're going to talk about another failed bank on the fdic.gov list. This one is called Pulaski Savings Bank. They were located in Philadelphia, Pennsylvania. The acquiring financial institution is called Earthstar Bank. It kind of sounds very pagan to me to say Earthstar, but who knows if that bank is around anymore. But Pulaski Savings Bank, they failed and closed November 14th in 2003 So quite a ways back. But the reason why we talk about these banks is because it tends to be a reoccurring pattern. And the reason why these things happen and they continue to happen is because you have the same people doing the same stupid things, but at different financial institutions. So it's like I've said in times past, a lot of these higher ups and managers for these banks, what they typically do is whenever their bank fails, they just go to another bank and tank it, but yet they get the money. I don't mean they get the money from the bank per se, but they get their pay, they get their benefits, they get their stock options, like they're just sucking it dry. So again, just because someone has an MBA or a financial background from a college or they have that degree, that doesn't mean that they have what it takes to run a bank, to operate a bank, to have dignity and integrity, and they may or may not actually believe in rules, laws, and regulations, much less have morals and values in their heart. So you have to be careful who you hire. So I'm reading again from the FDIC.gov website in regards to this bank failure. It says, on November 14th, 2003, Pulaski Savings Bank was closed by the 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. So again, if you are not an approved creditor, you're getting screwed. That's just how it is. So you're not going to be seen as an approved creditor and you're not going to be given any order of priority for your financial losses. That's just how it is with this. It goes on to say, the FDIC, as receiver, has taken all necessary actions to conclude the affairs of the failed financial institution and made all dividend distributions as required by law. And the receivership of state is deemed terminated, which is exactly what should happen. So again, whenever a bank fails, basically the FDIC comes in, takes it over in a good positive way, I would say, to try and help protect the depositors and account holders. So it goes from being its own bank to going under the umbrella of the FDIC. And then the FDIC opens up the bids across the nation of the United States to healthy banks to say, hey, does anybody want to buy up this bank?
Then if a bank wants to buy it, they negotiate with the FDIC on, I guess you could say, a financial agreement. And usually the FDIC will give them a discount, which I don't think that they should. I think that when a bank takes over another bank, they should take on that responsibility, if not the full responsibility. Because if they're not taking on the full responsibility of that bank, then these depositors are getting screwed again out of their money. But again, at a federal level, you are not protected over a certain dollar amount. And back during this time or this day and age, you're only covered up to $100,000.
So again, the FDIC, aka our money, via the federal government is not supposed to be on the hook for everybody's bills, everybody's stupidity, and it's not supposed to pay out all this money.