01 October 2009

The Keith Leggett Watch - Part Deux

Keith Leggett is at it again. It seems that he wants his nineteen readers to read about every single credit union failure as they happen. His most recent post celebrates the failure of Victorville, California's Members' Own FCU.

Let's see...

National Bank of Commerce, Berkeley, IL., January 16, 2009
Bank of Clark County, Vancouver, WA., January 16, 2009
1st Centennial Bank, Redlands, WA., January 23, 2009
Ocala National Bank, Ocala, FL., January 30, 2009
Suburban FSB, Crofton, MD., January 30, 2009.
MagnetBank, Salt Lake City, UT., January 30, 2009
County Bank, Merced, CA., February 6, 2009
Alliance Bank, Culver City, CA., February 6, 2009
FirstBank Financial Service, McDonough, GA., February 6, 2009
Pinnacle Bank of Oregon, Beaverton, OR., February 13, 2009
Corn Belt Bank & Trust Co. Pittsfield, IL., February 13, 2009
Riverside Bank of the Gulf Coast, Cape Coral, FL., February 13, 2009
Sherman County Bank, Loup City, NE., February 13, 2009
Silver Falls Bank, Silverton, OR., February 20, 2009
Heritage Community Bank, Glenwood, IL., February 27, 2009
Security Savings Bank, Henderson, NV., February 27, 2009
Freedom Bank of Georgia, Commerce, GA., March 6, 2009
TeamBank, NA, Paola, KS., March 20, 2009
Colorado National Bank, Colorado Springs, CO., March 20, 2009
FirstCity Bank, Stockbridge, GA., March 20, 2009
Omni National Bank, Atlanta, GA., March 27, 2009
Cape Fear Bank, Wilmington, NC., April 10, 2009
New Frontier Bank, Greely, CO., April 10, 2009
Great Basin Bank of Nevada, Elko, NV., April 17, 2009
American Sterling Bank, Sugar Creek, MO., April 17, 2009
American Southern Bank, Kennesaw, GA., April 24, 2009
Michigan Heritage Bank, Farmington Hills, MI., April 24, 2009
First Bank of Beverly Hills, Calabasas, CA., April 24, 2009
First Bank of Idaho, Ketchum, ID., April 24, 2009
America West Bank, Layton, UT., May 1, 2009
Citizens Community Bank, Ridgewood, NJ., May 1, 2009
Silverton Bank, NA, Atlanta, GA., May 1, 2009
Westsound Bank, Bremerton, WA., May 8, 2009
BankUnited, FSB, Coral Gables, FL., May 21, 2009
Strategic Capital Bank, Champaign, IL., May 22, 2009
Citizens National Bank, Macomb, IL., May 22, 2009
Bank of Lincolnwood, Lincolnwood, IL., June 5, 2009
Fist National Bank of Anthony, Anthony, KS., June 19, 2009
Cooperative Bank, Wilmington, NC., June 19, 2009
Southern Community Bank, Fayetteville, GA., June 19, 2009
Mirae Bank, Los Angeles, CA., June 26, 2009
MetroPacific Bank, Irvine, CA., June 26, 2009
Horizon Bank, Pine City, MN., June 26, 2009
Neighborhood Community Bank, Newman, GA., June 26, 2009
Community Bank of West Georgia, Villa Rica, GA., June 26, 2009
First National Bank of Danville, Danville, IL., July 2, 2009
Rock River Bank, Oregon, IL., July 2, 2009
John Warner Bank, Clinton, IL., July 2, 2009
First State Bank of Winchester, Winchester, IL., July 2, 2009
Elizabeth State Bank, Elizabeth, IL., July 2, 2009
Millennium State Bank of Texas, Dallas, TX,July 2, 2009
Founders Bank, Worth, IL, July 2, 2009
Bank of Wyoming, Thermopolis, WY, July 10, 2009
Temecula Valley Bank Temecula, CA, July 17, 2009
Vineyard Bank Rancho, Cucamonga, CA, July 17, 2009
BankFirst, Sioux Falls, SD, July 17, 2009
First Piedmont Bank Winder GA,17-Jul-09
Security Bank of Bibb County Macon GA,24-Jul-09
Security Bank of North Metro Woodstock GA,24-Jul-09
Security Bank of North Fulton Alpharetta GA,24-Jul-09
Security Bank of Gwinnett County Suwanee GA,24-Jul-09
Waterford Village Bank Williamsville NY,24-Jul-09
Security Bank of Jones County Gray GA,24-Jul-09
Security Bank of Houston County Perry GA,24-Jul-09
Integrity Bank Jupiter FL,31-Jul-09
First State Bank of Altus Altus OK,31-Jul-09
First BankAmericano Elizabeth NJ,31-Jul-09
Peoples Community Bank West Chester OH,31-Jul-09
Mutual Bank Harvey IL,31-Jul-09
First State Bank Sarasota FL,7-Aug-09
Community National Bank of Sarasota County Venice FL,7-Aug-09
Community First Bank Prineville OR,7-Aug-09
Union Bank, National Association Gilbert AZ,14-Aug-09
Dwelling House Savings and Loan Association Pittsburgh PA,14-Aug-09
Colonial Bank Montgomery AL,14-Aug-09
Community Bank of Arizona Phoenix AZ,14-Aug-09
Community Bank of Nevada Las Vegas, NV,August 14, 2009
First Coweta Bank, Newnan, GA, August 21, 2009
Guaranty Bank, Austin, TX, August 21, 2009
CapitalSouth Bank, Birmingham, AL, August 21, 2009
ebank, Atlanta, GA, August 21, 2009
Bradford Bank, Baltimore, MD, August 28, 2009
Mainstreet Bank, Forest Lake, MN, August 28, 2009
Affinity Bank, Ventura, CA, August 28, 2009
First Bank of Kansas City, Kansas City, MO, September 4, 2009
InBank, Oak Forest, IL, September 4, 2009
Vantus Bank, Sioux City, IA, September 4, 2009
Platinum Community Bank, Rolling Meadows, IL, September 4, 2009
First State Bank, Flagstaff, AZ, September 4, 2009
First Bank of Kansas City, Kansas City, MO, September 4, 2009
InBank Oak Forest, IL, September 4, 2009
Platinum Community Bank, Rolling Meadows, IL, September 4, 2009
Vantus Bank, Sioux City, IA, September 4, 2009
Corus Bank, Chicago, IL, September 11, 2009
Brickwell Community Bank, Woodbury, MN, September 11, 2009
Venture Bank, Lacey, WA, September 11, 2009
Irwin Union Bank and Trust Company, Columbus, IN, September 18, 2009
Irwin Union Bank, F.S.B., Louisville, KY, September 18, 2009
Georgian Bank, Atlanta, GA,,September 25, 2009

These 99 banks have failed in just the past nine months. In fact, there have been more bank failures in Georgia (19) and Illinois (16) in 2009 than there have been credit union failures in the entire nation combined (14). The FDIC expects $70 billion in losses due to failures over the next five years, and there are currently 416 banks on its "problem" bank list. This, even with $600 billion in TARP funds allocated to fortify the banking industry's financial statements.

What was your point again, Mr. Leggett?

This isn't a contest, Mr. Leggett. If it is, I just told you the score. Instead, we are talking about thousands of jobs, billions of dollars, and immeasurable consumer confidence lost. Instead of celebrating, why not use your position at the ABA to help your member banks prevent the next global financial meltdown? Seems like a better way to spend your time than throwing mud on the only financial institutions in America interested in helping common, everyday people get the affordable credit they need and deserve.


Matt_Vance said...

Nice post Matt. If you're reader #19, I'm reader #18. Would guess that the other half are CU folk as well.

I do want to bring up one point though. You're correct that the numbers of failed CU's is much much smaller than the number of failed banks.

But, when it comes to mud slinging...there are CU folks out there updating their twitter feeds or marking another notch in credit union their belt with each bank failure.

I don't know how fair it is to call out Keith Leggett when in this case all he is doing is presenting facts and withholding from any snide remarks.

Matt, the Credit Union Warrior said...

@Matt - I couldn't be happier that you brought that up. The folks on both sides are wrong, and I have called out the CUers on Twitter several times for that nonsense. My response to a credit union blogger pulling Leggett-type shenanigans would look very similar to what I've written here. To date, I'm simply unaware that such a post exists.

If the spirit of Leggett's posts was fairness, he'd also write a post each time there was a bank failure. He hasn't made that attempt. Instead, he's simply the proverbial pot calling the kettle black. Or, more to the point in this case, he's an owl telling a sparrow that its head is too big.

Keith Leggett said...

Hi Matt,

You stated that there has only been 14 credit union failures. NCUA at its September Board meeting stated that the number of credit union failures through August of this year was 17.

Matt, the Credit Union Warrior said...


Clearly, you still don't get the point. Actually, I think you do get the point...that's why you didn't address it.

I got my credit union failure information from here http://www.cuinfosecurity.com/articles.php?art_id=1827, and my bank failure information from here http://en.wikipedia.org/wiki/2008-2009_bank_failures_in_the_United_States. Any inacuracies with any of my figures were honest mistakes using publicly available sources.

Jeff Hardin said...

Matt - I couldn't agree more with this post. A friend of mine that I had not seen in 15 years dropped in for the night last night. His folks live in Lima, OH and the economy there is really struggling.

His dad is 70 and has no choice but to continue working due to decimated 401-k accounts and a now upside-down mortgage. My friend (who is 25) said that a lot of his friends are unemployed and have simply quit looking for work.

In short, my friends folks worked hard, raised kids, paid their taxes -- and now face insecurity in their lives at the worst possible time.

I get that we all work "in the industry" and so our eyebrows cock when we see what's going on in financial institutions these days.

But really, is the failure of any bank or credit union cause for anything other than sadness at the people who will have fewer choices and potentially less access to credit, among other things?

Jeffry Pilcher said...

Debating who's had more closures sounds like "Who's The Biggest Loser?" No winners here.

I'm guessing the ABA maintains a list of closed banks, but I don't expect them to publish it at a blog titled "Credit Union Watch."