Feds Close Arkansas National Bank For "Unsafe And Unsound" Practices

BENTONVILLE, Ark. — Federal regulators says they've closed ANB Financial National Association banks after discovering "unsafe and unsound" business practices there.

David Barr, a spokesman for the Federal Deposit Insurance Corp. says many customers served by the bank's nine locations had accounts under $100,000, which will be fully insured by the government. Barr says customers can continue to write checks and draw money from ATMs through the weekend.

Barr says Pulaski Bank and Trust Co. agreed to assume control over ANB Financial's bank locations, which will be open Monday.

As of Jan. 31, federal regulators say ANB Financial had about $2.1 billion in assets and $1.8 billion in total deposits.

It was the third closure this year of an FDIC-insured bank. Douglass National Bank, a Missouri bank with $58.5 million in assets, was shut in January; another Missouri institution with assets of $18.7 million, Hume Bank, was shut down in March.

Both were dwarfed in size of ANB Financial, where regulators found lax lending standards, mostly for construction and development loans for projects in Utah, Idaho and Wyoming, as well as Arkansas.

Observers have been watching for signs of bank distress resulting from the mortgage crisis. Profits at federally insured U.S. banks and thrifts plunged to a 16-year low in the fourth quarter as institutions set aside a record-high amount to cover losses from sour mortgages.

The FDIC is planning to beef up its staff, including temporarily hiring up to 25 retired FDIC employees who worked in the agency's more than 200-person division that handles failed banks. They will handle an anticipated increase in bank failures.

Comments

[Nyk]

Suddenly really happy I don't do business with any banks. I only have a credit union, which is non-profit and accountable to their clients who are also their shareholders. I'd switch if I were you all.

[dadw5boys]

A credit union is a thrift!

[loki]

Is that the same Pulaski bank thats based in St, Louis??? I have friends who live next door to the owners of Pulaski bank in St. Louis area. Just curious.

[Wildgorilla]

Longer life expectancy was not created by Clinton.

[FreedomCorpse]

the massive inflation (oh you believe the BLS 3-4% number ha haha) we're experiencing is directly due to this type of malfeasance. Food riots in 33 countries due to inflation as money hides itself away in commodities from the toxic dump of banks creating SIV's, CDO's and a plethora of other worthless 'investment vehicles'. Buy precious metals and watch the tail wag the dog show for the next couple of years.

[Fire]

Does Monica Lewinsky have a bank account there?

[Beachrunner]

This is the Clinton legacy. Thanks so much.

[Wildgorilla]

Longer life expectancy was not created by Clinton.

[Veri]

Sounds like a true Republican. Actually, this is the Demo-Republican legacy. So, those deposits are gone? That sucks. The Fed basically null & voided their own money so taxpayers could pick up the tab. This seems to further indebt America and you and I and everyone who pays taxes.

I want in this racket. Where do I sign up? I don't. Like you, I am a peasant fit for working the fields.

[Deborah]

Bentonville , Arkansas is the headquarters for Wal Mart.

[GerryS]

the waltons could not have a Wal-Mart bank, I wonder if this is some fall out to that!

[Rule Of Law]

Wait...it's not a bank?

[rlmcintosh]

Ron Paul knows why this is happening.
Obama, Clinton, McCain simply work for the machine that is making this happen.
Wake Up people. Please, wake up.

[loki]

Rue paul is a wacko, racist and god knows what else. He scares me as much as Obama, Hillary, McCain and Bush , the corporate puppets do.

[olephart]

"Rue paul is a wacko, racist and god knows what else."

That being so, you must admit that even a blind pig can find an acorn. He is the only one who recognizes that our Foreign Policy is the cause of our problems and that we can end the War immediately. His desire to return to the 1830s is admittedly laughable.

[FreedomCorpse]

Ron Paul is a wacko on issues other than economics (getting rid of the dept of education being one qualifier) but on economic policy he is correct. Why can't America have someone who has it right about economic policy and not a wack job on other topics?

[djthedj]

You have no idea what you are talking about. You are just parroting what the corporate media has sold you. Gee, I wonder why they are so scared of Paul? Read his new book and get back to us when you know something instead of just running your fool mouth.

[MaracaKabob]

Why is Huffpo using a picture of a Wells Fargo Atm station for the article about an ANB bank going down. Is there a problem with Wells Fargo, my bank?!?!? Should I RUN down to the Wells Fargo bank and close all my accounts?

[blytzd]

I would... when they feel the crunch they will be using your money to correct their mistakes. Did you think that half percent in interest they give you each year was because of your smile?

[loki]

or the $3 fee for using the ATM machine!! Now that is really sucks.

[loki]

Wells Fargo bought AG Edwards out, another near failing investment firm that has so far kept it mostly under wraps by paying people off. Not only that, Wells Fargo is also up to their eyeballs in bad mortgages as they are famous as predatory lenders. So yes, Well Fargo may not be the safest place to keep your money.

[ernieson]

I believe that was Wachovia who bought AG Edwards.

[loki]

Why is Huffpo using Wells Fargo ATMs for the photo? Because they do not know any better. Why do they always use Nuke steam stacks on stories about pollutions? Steam is water, and that is all that comes out of Nuke stacks. But they are very uneducated as to things in the world. But they do know what will catch peoples eyes, and that is what they do.

[Veri]

Watching CNN during the first days of Afghanistan and the presented recorded video from the front lines. Problem though. At first, it was presented as a night-vision shot. However, when one looked at the video, the blank adapter on the end of the soldiers rifle gave away the fact that this was not taken in Afghanistan.

A few days later, the same video was shown without the "night-vision" green filter. I mentioned to a friend that spent most of his Army career running around Fort Irwin and the National Training Center. He knows exactly where the footage was shot. And it was definitely not in Afghanistan unless Afghanistan is in California.

Fast forward to Iraq in 2003. Same footage. Both times. However, this time being presented as shot in Iraq. Maybe there is a town called Iraq in California also.

[digidigido2]

But..... but......... but........ that'd be socialism (sarcasm)

[olephart]

"Federal regulators says they've closed ANB Financial National Association banks after discovering "unsafe and unsound" business practices there."


And they left Wall Street open?

[Veri]

Wall Street is their employer. You can't fire boss can you?

[hershel62964]

Was Hillary running that bank?

[olephart]

No, it was Bush Crime Family again.

"In 1990, federal regulators filed a $200-million lawsuit against Neil Bush and other officers of the Silverado Banking, accusing them of "gross negligence" contributing to its $1 billion collapse.1 "Our conclusion is that Silverado was the victim of sophisticated schemes and abuses by insiders and of gross negligence by its directors and outside professionals," FDIC Senior Deputy General Counsel Douglas H. Jones said in a statement."

[blytzd]

Glad my taxes bailed out the little people.

[findingthetruth]

NEWSFLASH----Perhaps Hillary can help. It's a start for a lift. She's lost her current fight.

[americaforme]

Shut the door to the CAYMANS off shore banking...It will save the banking industry in USA. I cant believe these black holes exist in this monumental money crisis. Who's guarding the hen house, the fox? ,Sad for America when the courts have no power to stop money laundering from our elite. Too many in congress bank in the caymans...Bush'n Co. never gets caught. A patriot is a transparent USA banking person? Hillary where do you stuff your money? Obama where does your supporters stuff their money?

[jennbeez]

I'm an Obama supporter and I stuff my money in my mattress.

[HmblDog]

I drink your milkshake

[Wiredwilly]

Ron Paul , Vice President 08' . Either Party.

[bigbillhaywood]

Give us all a break...ron paul is a self-admitted 'libertarian'. It has been 'libertarian' 'free market' worship that has destroyed our economy.

'libertarian' market deregulation is not the answer....but it is the very heart of that lunatic fringe philosopphy known as 'libertarianism'. everyone involved in the cato institute will rot in hell.

[Veri]

But very comfortably. With lots of money, drugs, and prostitutes bought with that money.

[WIpatriot]

Ron Paul, Secretary of the Treasury!