The Columbian Bank & Trust - Topeka, KS Bank Gagal - Episode 350

Freesia Brindisi (0:01)

Good morning, good morning. 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 350, and we're going to take a look at another failed bank. So let's go ahead and get started on this puppy here. Today, we're going to take a look at a failed bank, again, in the year 2008 This one failed in Topeka, Kansas. This one is the Columbian Bank and Trust. Again, it failed in Topeka, Kansas. This one closed August 22nd, 2008 And when I say closed, I mean it completely failed, and the FDIC had to take it over. The acquiring financial institution was Citizens Bank & Trust. Very interesting there. In terms of the background information to this one, again, this is directly from the FDIC.gov website. It says failed bank information for the Columbian Bank & Trust in Topeka, Kansas. On August 22, 2008, the Columbian Bank & Trust Company was closed by the Kansas Office of the State Bank Commissioner. The FDIC was named receiver. Citizens Bank & Trust of Chilikoth, Missouri acquired all insured deposit accounts. It says the FDIC as receiver for the Columbian Bank & Trust Company of Topeka, Kansas has taken all actions necessary to terminate the receivership estate. The receiver established a legal notice of intent to terminate the receivership on October 6th, 2022, so quite a few years later, and has made all dividend distributions required by law. Effective February 1st, 2023, the receiver was discharged and the receivership estate was terminated and ceased existence as a legal entity, and that is what should happen in that instance. It says also be aware of scams. It says please be advised you will not receive any email notification to claim, unlock, suspend your account, or to provide any private information. Please be aware of any phishing scams to obtain information from you. In terms of about Citizens Bank & Trust Company, a little bit of background information. It says all insured, non-brokered deposit accounts have been transferred to Citizens Bank & Trust of Chillicothe, Missouri. I'm not sure how to pronounce that city. Not real familiar with it. It says former The Columbian Bank & Trust Company locations reopened as branches of Citizens Bank & Trust. Your transfer deposits will separately, or sorry, were separately insured from any accounts you may have already had at Citizens Bank & Trust for at least six months after the failure of the Columbian Bank & Trust Company. You may withdraw your funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with Citizens Bank & Trust as long as the deposits are not pledged as collateral for loans. So if you have a loan and it is considered pledge or collateral, that might prove to be difficult for you in that situation. It says in terms of contacting the Citizens Bank & Trust, it says on December 10th, 2010, Citizens Bank & Trust, oh here we go, merged with Armed Forces Bank, National Association. You can contact Armed Forces Bank, National Association. Let's see, their address is 320 Kansas Avenue in Fort Leavenworth, Kansas, and the zip code is 66027 I kind of wondered why this one took so long to terminate. It's because another bank merged with the one that acquired them. So whenever things like that happen, it delays it because the FGIC has to make sure that their books are clear and good to go. They can't just pass off a failed bank to another bank and be like, okay, we are washing our hands of this. No, they want to make sure that it is going to another good bank and that their merger is going to be free and clear of any kind of bad, I don't want to say bad blood, but any kind of fraudulent action or activity. They want to make sure that everything is good to go. And it says here, the transaction documentation was a purchase and assumption agreement, the agreement between FDIC and acquiring, basically the acquiring financial institution.

In terms of the press release, I got a copy of that. And again, this was released by the FDIC and it was for immediate release when this occurred back in 2008, so on August 22nd, 2008

Let's see here, it says immediate contact, it's the usual guy, David Barr, 202-898-6992 is his telephone number. And then his email address is dbarr, d-b-a-r-r, at fdic.gov. Cell phone, at least at this time, is 703-622-4790.

And this one says, Citizens Bank & Trust of Chillicothe, Missouri, acquires the insured deposits of the Columbian Bank & Trust Company of Topeka, Kansas. Notice it says insured deposits. So if it's not insured, then they did not want to take possession of that. It says, The Columbian Bank & Trust Company of Topeka, Kansas was closed today by the, let's see here, Kansas Bank Commissioner J. Thomas Thull, and the Federal Deposit Insurance Corporation, FDIC, was named receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Citizens Bank & Trust, Chillicothe, Missouri, to assume the insured deposits of the Columbian Bank & Trust Company. The nine branches of the Columbian Bank & Trust Company will reopen on Monday, as branches of Citizens Bank & Trust. This is back in the day, 2008 Depositors of the filled bank will automatically become depositors of Citizens Bank & Trust. Let's see here. Deposits will continue to be insured by the FDIC. So there's no need for customers to change their banking relationship, to retain their deposit insurance coverage. So basically, they're kind of in a...