RUSH QUESTIONS BANK REGULATOR ON POLICIES SURROUNDING THE CLOSURE OF PARK NATIONAL BANK

Today, U. S. Rep. Bobby L. Rush (D-IL) attended the House Subcommittee on Financial Institutions and Consumer Credit Hearing, chaired by U. S. Rep. Luis Gutierrez (D-IL), where he questioned a representative from the Office of the Comptroller of the Currency on some of the circumstances surrounding the shocking closure, last fall, of the Park National Bank of Oak Park, Illinois.

"The excesses of Wall Street are well documented.  My concern, though, is that far too often, outside of public scrutiny, some parts of the federal government's financial oversight agencies do not act thoughtfully or in a manner that recognizes the important role that financially sound, community-based banks play within local communities," said Rush who, along with other Chicago elected officials and community leaders, aggressively conveyed their concerns to regulators after Park National Bank (PNB) was closed on October 30, 2009.  PNB was closed not because of its financial condition but  because it was part of a broader network of financially troubled banks owned by FBOP Corporation.
 
"Park National Bank closed not because of any major failings of its own but, rather, because of discretionary authority that allows the Federal Deposit Insurance Corporation to close an entire network of commonly owned banks even if some of those banks could have survived if they were independently owned and operated," said Rush.  Rush's concerns were prominently featured in a story last year in the Wall Street Journal where the regulatory authority that allowed PNB to be closed was reported on in detail.

Today, Rush questioned Jennifer Kelly, Senior Deputy Comptroller for Midsize/ Community Bank Supervision, a unit of the Office of the Comptroller of the Currency (OCC).  In part, Rush asked Kelly if the OCC has specific policies that examine the potential impact of bank seizures on low-income and predominately minority, underserved areas especially when the people in those communities have limited access to community banks.
 
Congressman Rush's query of Ms. Kelly can be viewed, in its entirety, by clicking on this link to the archived hearing webcast available on the House Committee on Financial Services website:  http://www.house.gov/apps/list/hearing/financialsvcs_dem/FIhr_01212010.shtml

In addition, here's a link to the Wall Street Journal story, "When Bad Banks Sink Good Ones," where Rush's counsel was sought:  http://online.wsj.com/article/SB125720151735123867.html