A tiny Indiana bank and the bailout

November 18, 2008
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Newton County Loan & Savings bank couldnâ??t be more out of the way â?? or more relevant in this day of government bailouts.

The thrift is in Goodland, a burg between Lafayette and Chicago, and has all of $7.3 million in assets.

But the bank was inhaled yesterday by insurance giant Lincoln National Corp. to allow Lincoln National to seek status as a bank holding company and ultimately get in line for some of the $700 billion in federal bailout funding. Lincoln, which was headquartered in Fort Wayne before moving to Philadelphia in 1999, is one of several insurers making the move.

Whether local insurers including Conseco Inc. or even WellPoint Inc. follow suit remains to be seen.

How do you feel about this? Should insurance companies, many of which have suffered massive investment losses, be given a seat at the table?
  • I am more troubled with the plan to include private banks in this program than allowing insurance companies to participate.

    Private banks should be required to go public for participation in order to keep transparency, accountability, and weed out conflicts of interest and corruption with taxpayer dollars.

    No one should be able to hide behind private ownership when they are holding public money.

    The public should demand that the Treasury's Capital Purchase Program for Privately Held Financial Institutions announced yesterday be dropped immediately.
  • I Think We Just Got Mugged

  • Look at this from Marketwatch: They are not even requiring prefered stock anymore. Sounds like the weak terms of the subprime mortgages they claim they are causing this crisis'.

    The Treasury Department announced Monday that it has set a December 8 deadline for private banking seeking government assistance under the $700 billion financial rescue package.

    Treasury said it would not demand preferred stock from some small institutions that are community development banks.

    Mutual Depository Institutions and S corporations are not eligible for government funds. Treasury put some caps on dividend payments for the private banks. The firms will be able to raise their dividends by only 3% per year, after an initial 3 years where dividends must remain steady
  • The Indiana side of this story is that while Lincoln National Corp. moved from Ft Wayne to greater Philly, Pa., Lincoln National Life is still domiciled in Ft Wayne, Indiana. While Lincoln's HQ is in Philly, PA with substantial offices in Hartford, CN & Greensboro, NC any additional Indiana prescence from Lincoln should be welcomed. This is good news and a welcome sign for continued investment and a substantial continued prescence in Ft Wayne and the State of Indiana.

    If Lincoln can pull in some TARP funding that is beneficial to the company and shareholders - good for them! Better to the see the $'s with an Indiana company versus Wall Street....
  • first it was the gas companies, then it was the health care industry, and then housing industry, ... NOW the banks are mugging us... who is next?
  • Where is the outrage here? I recall Congress spending valuable time investigating steroid use in baseball holding hearings with big name ball players and Indiana's own Dan Burton embarrasing himself and Indiana for that matter. Where is the Congressional investigation of the House Member Barney Frank and Senator Chris Dodd? These two were supposedly responsible for the oversight regarding the banking industry. Some job they did - if you didn't hear Frank and his outright lies to Bill O'Reilly, you should check it out.

    And it was our own government that put pressure on banks to participate in the so called sub-prime market. In other words, if you don't play in this arena, you can't play ball with Freddie and Fannie. How in the world can competent lenders ever decide to lend money to people that can't afford to pay? Sheer lunacy!!!

    And this is our best at work? Bankers used to be smart. Too many of them got forced out due to all of the acquisitions. The banks were left with little experience and lots of energetic youth looking for ways to make big money quickly.

    All of this is at the feet of our own government allowing all of these things to happen. Taxpayers wanted change but they did nothing to change the evil that lingers. They ALL need to be turned out, especially the Senate and Msrs. Frank and Dodd. When will we Americans ever wake up?

    I'm afraid it's too late. Just continue to watch your retirements funds dwindle away because the bunch that started the mess is still in control. Perhaps it's time to march on Washington!!!
  • I agree with berwickguy, we should be outraged with our government right now. That is why Obama won so easily. I hope that he can bring some of the change he promised, but I'm not counting on it. The real problem is in Congress, not the Presidency.

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