ANP (VIDEO): Bailed-Out Bank CEO Says Bailout Failing Community Banks

Community (This content is not subject to review by Daily Kos staff prior to publication.)

Thursday January 22, 2009 · 9:14 AM PST

2009/01/22 · 09:14

As another $350 billion floods out of the Treasury, the American News Project looks at one small bailed-out bank.

Eagle Bank, a community bank headquartered in Maryland, received many millions of dollars of TARP money, but is having trouble making loans.

Its CEO, Ron Paul, says that the government has not taken fleeing depositors into account (particularly considering the $250,000 FDIC insurance limit) and, as a result, small banks and their surrounding communities will suffer.

This is a national problem. Nearly 200 small banks have received bailout infusions under $100 million.

Follow Danielle's reporting on twitter.

Watch at the American News Project.

Watch on YouTube.

Update: It is worth while to note that the $250,000 FDIC limit is probably fine for individual people depositing money in the bank, it's likely to put small businesses on edge. So, small businesses might spread their deposits out between small banks, but more likely they will put their money in big banks which are less inclined to fail and eat their money.

But while small businesses put their money in big banks, a lot of these banks have been asking small businesses to pay off their loans since those relationships are not quite as lucrative as those with big businesses.

In the meantime, small banks are struggling to meet demand for new loan requests from small businesses.

This content was created by a Daily Kos Community member.

Make YOUR voice heard!

Comments are closed on this story.