ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

A Teller's Tale: FDIC Bank Closure

Updated on June 27, 2010
fdic
fdic

My experience as a teller during an FDIC bank seizure

In July of 2009, I was employed as a teller at a regional bank based in Illinois. According to the FDIC, "No advance notice is given to the public when a financial institution is closed." However, in the weeks prior to our institution's official closure, several large business accounts who typically sent us daily cash deposits suddenly stopped all account activity. This was odd; in less than a week we went from receiving multiple armored car deliveries to virtually none at all. These account holders seemed to know something that we didn't, and it wasn't until the last day of July when we learned what it was.

On that memorable day, all of the bank employees were asked to stick around after closing time. Some of us suspected a closure; we knew the institution was struggling, but the full extent of its problems remained unclear. We completed all of our end of day procedures and anxiously assembled ourselves to await the news. Shortly thereafter, two FDIC employees (and a local police officer) arrived with some official looking documents. They thanked us for waiting and one began to read from the declaration: our institution "was hereby closed by the Illinois Department of Financial and Professional Regulation" due to "unsafe and dangerous business practices." The FDIC had been named Receiver, and they wasted no time. Thankfully, another institution had been willing to assume our assets, accounts and branches. Had this not been the case, all of us would have been unemployed after the government settled matters with the bank's customers.

The FDIC representatives were patient and understanding. They answered our questions as honestly as they could and even had dinner delivered to the location for us. After we ate, we began the tedious process of inspection and inventory. The "assuming institution" needed to know what it was getting; we compiled reports and logs, cash and negotiable instruments were audited, equipment was tagged and recorded, combinations and security procedures were relayed. This same process was taking place within all of the old bank's branches, and in the coming months would be repeated by external auditors and representatives of the assuming institution.

The following Monday, we reopened as a new branch of a different bank. There were lots of customer questions and concerns to be addressed, but the daily operations remained remarkably unchanged for quite some time. All of the front line staff became public relations liaisons, repeatedly assuring customers that yes we still had their money, they could continue to write checks and use debit cards as they always had, and loan payments still needed to be made. Despite our best efforts, some customers just weren't comfortable knowing that their financial relationship was now controlled by a previously unheard of and out of state institution. In addition, the new bank was unwilling to honor the interest rates on many Certificates of Deposit, and it wasn't obligated to. The resulting closure of those accounts (with the early withdrawal fees waived, of course) coupled with customer skepticism of new and unknown management lead to an influx of lost business.

Over time we became part of the new bank, and things slowly returned to normal. Signs and logos were changed, new protocols and procedures were adopted and customer unease gradually faded. The new owners retained most of the old bank's employees and were eager to make them part of the family, implementing changes with as much accommodation as possible. Even now some transition is still taking place behind the scenes. Workers continue to develop creative ways of merging various financial practices and proprietary computer software into one workable system. Customers are greeted by the same faces who had helped them before the closure and employees are embracing their new roles.

We're all happy to still be employed, and hope to never eat dinner paid for by the FDIC again.

Comments

    0 of 8192 characters used
    Post Comment

    • jimbody profile imageAUTHOR

      jimbody 

      8 years ago from Chicago, IL

      It certainly was. I'm glad to hear your bank didn't suffer the same fate. Keep up the good work! :)

    • mtryanks12 profile image

      mtryanks12 

      8 years ago

      That must have been a terrible thing to go through. The bank I work for was close to a situation like this in 2008 but stuck it out and is now booming.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)