As the third anniversary of the Bank of Clark County collapse passes, it’s time to accept facts and ask hard questions. BOCC did not collapse because an employee withheld appraisals. BOCC did not fail because it was mismanaged. BOCC failed because it got caught in the economic crash where asset values suddenly plummeted.
The hard questions need to be answered by the FDIC. Direct losses related to the seizure of BOCC are climbing past $150 million (not including uninsured personal deposits, lost businesses and jobs and legal costs for litigation). Why didn’t the FDIC secure the BOCC loan portfolio with $50 million in security, much of which would not have been actually needed since much of the BOCC portfolio was making timely payments? Why did the FDIC sell performing loans to investors for $.30 cents on the dollar? Why did the FDIC choose to protect banks deemed, “too big to fail,” while seizing over 700 small banks?
It’s my opinion that the FDIC reminded us all how shortsighted the Fed truly is. The FDIC needs to stop playing cops and robbers and start accepting the ripple effects of their actions. It’s our money and we deserve better.
Scott Hoffman
VANCOUVER
