I can't pick men any better than I can pick banks. Banks and cheating husbands all give you signs and red-flags and for some strange reason, we ignore the signs giving all sorts of excuses that go against our common sense until it is way to late to recover. The first bank I had here went under in the beginning of 2002, Hamilton Bank. I then went with my present bank and it was taken over by the Feds on Friday, Lydian Private. I banked with their on-line bank, Virtual Bank. The Federal regulators came in, always unannounced, and closed it flat down. It's expected to cost the FDIC $293 million.
Red Flag Number 1--giving you the run around
I have been calling my bank all year asking them, "What in the hell in going on?" I always got the same reply, "We're trying." Or they would tell me, "We're close to getting an investor...your money is safe." I liked the last one. Yes, my money is insured but now it is in limbo. What if I need to write a check. I have no idea how to do that right now. I suppose I will hear from Sabadell United Bank in Miami, the bank that is assuming deposits of Virtual/Lydian, but who knows when.
Red Flag Number 2--what started out as a love affair changes
I have been with Virtual Bank for nearly 10 years since it opened on PGA Boulevard. I liked the concept of Virtual Bank...do your banking online...no middle men. It cut out all that expense and it made sense to me and I had just been through banking with a traditional bank that closed. I was attracted to that just like I was to past husbands who gave me a song and dance. The banking concept worked for two years. The bank had a lot of depositors but one day, some idiot decided that the bank was going to really grow and try and grab more of the cash. They opened a private bank in Palm Beach, Lydian, paying top rent to cater to the extremely wealthy. This should have been the 2nd red-flag for me because it went against the very reason why I opened with them to begin with. When something changes, it is a red-flag.
Red Flag Number 3
Next, Lydian Private Bank got into the sub-prime mortgage business unbeknown to me. You see, everything about the bank you had to read online rather than getting anything in the mail. And I am not sure that there was any information as to what they were really doing. I didn't pay attention to that red-flag either when I finally read about the sub-prime mortgage operations and them opening a mortgage origination arm after reading about it in the PB Post.
Red Flag Number 4
I kept watching the newspaper and seeing their ratings and stars going down. Several weeks ago it went down to zero. I called my bank rep who didn't call me back. Red flag. When I finally got hold of her she said, "We're trying to work all this out. Don't worry, your money is insured." I said, "Zero indicates you are going belly-up."
All these banks and all of these mortgage brokers and other financial institutions have been let off the hook for causing the collapse of our economy. They have even been bailed out by Obama stimulus just to screw us all over again. Why did I not take my money out?
So, my fault. Lousy choices in banks and lousy choices in husbands both giving me a line. The red-flags are always there. You just need to take action at red-flag number 1. Don't let anyone give you the run around.
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