Oklahoma Bankers Association We make bankers better!
The recent failure of First National Bank, in Lindsay, while tragic, brought an important issue to the forefront of our industry, particularly here in Oklahoma.
With previous bank failures in recent years, all depositors were eventually made whole – which also included those over the current $250,000 FDIC limit. With the failure of the Lindsay bank, however, the FDIC has shown that process is no longer standard.
Upon the Lindsay bank’s collapse, the FDIC immediately paid only 50% of uninsured deposits, while putting together a plan to hopefully make those customers whole again. It creates an opportunity to restart the conversation with our elected officials that we need to have a more reliable strategy in such instances for all banks, regardless of size.
A clearer and more consistent policy would ensure fairness and, most importantly, reassure trust and stability in the entire banking system.
The OBA will continue to have discussions with regulators and elected officials to make sure all banks and bank customers are treated fairly and equally, regardless of the size of the financial institution. Additionally, we are working closely with the Oklahoma State Banking Department. Commissioner Mick Thompson has been in constant contact with our federal regulators and members of our Washington, D.C., delegation regarding this issue.
Again, while the failure of the Lindsay bank is a tragedy for all involved, we hope it sparks a nationwide call to action for meaningful reform in the realm of fairness and consistency of deposit insurance.