According to that same Birmingham News this morning, the Bessemer City Council has voted to withdraw its money from Colonial Bank: "We still have faith in Colonial...but..."
Yea, that's a big "but". When the Feds seize a bank, it usually happens on a Friday at 5pm. And with the developments at Bobby Lowder's place this past week, you can understand the Council's nervousness. Even with FDIC insurance! At the banks they've closed [none in Alabama so far, but 27 during July and August 2009...almost 75 this year so far]...the offices have been open the next day to allow customers to do anything they want with their deposits. Still, I wonder if Auburn University still has money with Colonial? Is Lowder's power so diminished that a University official would dare go to the local branch and make a rather large withdrawal? And where does it go then, under student mattresses?
[NOTE: Here's the offficial list of failed banks.]
[UPDATE: Bloomberg via The Birmingham News: Colonial to be shut down and taken over today.]
I wouldn't be surprised one bit to see Bobby Lowder indicted.
ReplyDeleteHe jumped ship (resigning and selling stock) before they "officially" fell.
Wouldn't it be poetic justice to see Auburn University's micro-manager in prison?