FDIC Federal Register Citations

From: Jan Weiberg
Sent: Monday, November 03, 2008 4:23 PM
To: Comments
Subject: RIN#3064-AD37

While we appreciate the Treasury and FDIC’s efforts in managing the financial crisis on so many different levels, as a well-capitalized, high liquidity community bank whose strength and stability over the years attracts depositors when economic uncertainties occur, we feel that we are almost being forced to participate in the additional insurance on non-interest bearing transaction account portion of the TLGP program even though we do not feel our institution’s financial position makes additional coverage necessary. However, due to the notification requirements, we feel depositors will likely move to institutions that have the additional coverage regardless of the reasons for an institution declining the coverage. So we are going to pay increased premiums for coverage that we feel is not needed because of public perception and competitive reasons.  We also feel that the banks who participate in the program should have the option to eliminate the bank’s internal accounts as well as collateralized deposits, e.g. public funds from covered deposits. It is very frustrating to see that the disastrous results of  “too big to fail” over-consolidation and intertwining of financial services that community banks have feared and warned about for years is now impacting us with additional expenses.   

Jan Weiberg, SVP & Cashier, Liberty National Bank Paris, TX