FDIC Faults Bank for Surviving
East Bridgewater Savings Bank is one of the best performing banks in the nation. The bank is “paranoid about credit quality” and in reward ended up with zero delinquent loans or foreclosures on its book.
Apparently, to the FDIC, that is not good enough. Take more risk, they say.
It is mind-boggling that in a time like this that the FDIC can criticize any bank for being careful. I understand the need to have banks lend to get money flowing through the system again. But, to criticize a bank for how aggresive they have been lending in recent years just shocks me.
The bank should be applauded for being careful yet still lending a solid amount of capital to the public. They also should not be punished by being forced to lend more during these rough times. They should be allowed to keep a properly functioning business run in the same manner as before.
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