On Friday, Oct. 18, 2024, the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) shut down The First National Bank of Lindsay, which had been failing to maintain its capital requirements.
According to reports, The First National Bank of Lindsay had been keeping "bogus and disingenuous" bank documents that ultimately exposed a major deficiency at the financial institution. Simply put, the value of the bank's assets was less than its creditor obligations.
Unlike what happened to Silicon Valley Bank (SVB) last year, the FDIC is only covering 50 percent of uninsured depositors' funds – the FDIC covered 100 percent of uninsured depositors' funds at SVB, by comparison.
"For uninsured deposits, the FDIC has announced it will make 50 percent of those funds available to depositors starting Monday, October 21, 2024, with the possibility of increasing that amount as assets from the failed bank are sold," the FDIC said in a statement.
?First National Bank of Lindsay, Oklahoma has failed. Tens of millions were lost, assumed stolen, and one man is dead in this sleepy little town where money has a habit of disappearing and ordinary people are always left holding the bag.? pic.twitter.com/q5VvU7m5Z6
— Nobody Special (@JG_Nuke) October 21, 2024
(Related: There is much more to come as America's commercial real estate [CRE] sector continues to collapse.)
Laws are for poor people – the rich always get bailed out with U.S. tax dollars
To be clear, uninsured deposits are not supposed to receive anything from the FDIC, hence why they are called uninsured. In this case and in the case of SVB, however, there are apparently some exceptions to that rule.
If you are someone who is rich and powerful, as were the depositors at SVB, then you are entitled to full restitution in the event of your uninsured deposits disappearing due to a bank failure. At The First National Bank of Lindsay, the government decided that uninsured depositors should receive only half of their money back.
"People (billionaires), and businesses with as much as $500 Million dollars on deposit at SVB (Roku) were bailed out by the government last year," writes Stan Szymanski for Encouraging Angels.
"Is this new assertion by the FDIC to only assure 50% of uninsured deposits an indication of future unwillingness to make these large depositors whole? What does this say for the actual stability of the U.S. banking system when the response to one modest bank in Oklahoma being taken over changes how the 'insurers' of the system react?"
The answer to these questions remains unknown, of course, since the government is no longer beholden to the will of We the People for whom it is supposed to work. The FDIC apparently makes up new rules on the fly depending on whose wealth is at risk.
The First National Bank of Lindsay, by the way, only has one office location. It is small fries compared to the thousands of other U.S. banks that in the coming days are likely to suffer a similar outcome. Will there be enough money to reimburse everyone who loses as a result? The answer is of course not, which means things are about to get really ugly.
"Things appear to be changing," Szymanski further writes. "And for the American people it appears to mean more uncertainty amongst a backdrop of national uneasiness and disgust in the collective reverberation to recent political responses to tragedy."
"Food, water, energy, shelter, protection, communications and consideration of the acquisition of precious metals for the average person looms larger than ever."
How much longer will it be before America's Ponzi scheme economy bites the dust? Learn more at Collapse.news.
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