Superior Bank, FSB - Hinsdale, Illionis Bank Gagal - Episode 321

**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, FreeSaber and DC. Today is episode 321, and we're going to take a look at another failed bank. The one today we're going to discuss is Superior Bank FSB. 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, Quebec, Illinois, Texas, New Hampshire, and Montana in terms of countries, the United States, Sweden, Brazil, Canada, and Bangladesh. Oh, and China as well. Good to see all of you. A big shout out to my Chinese listeners over in China. I'm surprised that you can access this podcast because China tends to block everything that you guys want to see or do. Like for example, you're not allowed to use Facebook. So the Chinese government to prevent you from knowing what's going on outside your country, they created what's called China Book to replace the use of Facebook in their country. So it's a very evil, corrupt, communist country. But let's dive back in to this lovely episode. So I'm reading from the FDIC.gov website. And this one is Superior Bank, FSB. It was located in Hensdale, Illinois. The acquiring financial institution was Superior Federal FSB. Their closing date was July 27th in 2001 So it goes back about 23 years. Now I'm going to read a little bit about this one here. So it says, on July 27th, 2001, Superior Bank FSB of Hensdale, Illinois was closed by the Office of Thrift Supervision, whatever that means, OTS, and the Federal Deposit Insurance Corporation, also known as FDIC, and they were named Receiver. As Receiver, the FDIC is charged with winding up the business affairs of the failed financial institution, kind of a repeat of the words that they use. 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're not an approved creditor, you're not getting money, or you're money back, I should 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. So again, if it's not required by law, you're screwed. And the Receivership is deemed terminate. Now in terms of the press release, there were three different ones. So let me take a look at the first one. Hold on just a moment, because I don't want to read these out of order. So there's one that came out, or there are two different ones that came out in 2001 Then there was a third one that came out in 2002 So the first one that came out, this is a press release from FDIC, and it says the media contact in Washington was Phil Batey, at 202-898-7192, and then in Chicago, David Barr, I guess he moved from DC to Chicago, his telephone number was 202-494-8061, and this was released July 27, 2001 So it says, the FDIC establishes New Savings Bank as successor to Superior Bank, FSB, Hensdale, Illinois. The Federal Deposit Insurance Corporation, also known as FDIC, transfer the insured deposits and substantially all the assets of Superior Bank, FSB, Hensdale, Illinois to Superior Federal FSB, also known as New Superior, a newly chartered full service mutual savings bank. Superior Bank with total assets of 2.3 billion, so quite a bit here, 2.3 billion and total deposits of 1.6 billion was closed earlier that day by the Office of Thrift Supervision and the FDIC was named Conservator. So by transferring operations to New Superior, the FDIC will be better able to affect an orderly resolution with little to no disruption to insured depositors and other customers, said John Reach, REICH is how you spell his last name. He was the acting FDIC chairman. He says, our goal is to have this institution back in private hands before years end. That's actually really good to hear because that means that the FDIC is recognizing its place as just a federal agency, not a bank. Goes on to say in this press release, all deposit customers automatically become customers of New Superior. Depositors of New Superior have immediate access to their insured funds, and customer service will continue uninterrupted, sorry, uninterrupted, as depositors will continue to have access to their funds by writing checks, using debit cards, or using automated teller machines in the same manner as before the change. Beginning on Monday, which was back then in 2001, beginning on Monday, Superior Bank's 18 offices located in the Chicago metropolitan area, I'm not surprised this is so corrupt, it's in Chicago. Chicago has been corrupt ever since like the 1800s, so this is nothing new, they need to change. But the reason why it's had so many problems, Chicago in general, is because it's predominately Democrat, so therefore it's run by Democrats, so I'm not surprised it has a big issue. So it says, Superior Bank's 18 offices located in the Chicago metropolitan area will observe their normal operating hours and will continue to offer full banking services, including online banking. Superior Bank's loan production and servicing operations also will continue to operate as usual. It says, for additional information, the FDIC has established a toll-free number for customers of New Superior. That number is or was 1-800-331-6306 and will operate from 6 p.m. or sorry, will operate today, which was that day this was released, until 6 p.m. Central Standard Time to 12 a.m. Oh wow, so they went from 6 p.m. to 12 a.m. and then daily from 7 a.m. to 7 p.m. Kind of odd how this is worded. Customers also may visit the FDIC's website that gives the link for further information. At the time of closing, Superior Bank had about $42.9 million of potentially uninsured deposits held by approximately 1,000 depositors. The FDIC will contact customers with uninsured deposits to arrange an appointment with an FDIC claims agent. That's not good at all.