Friday, March 3, 2017

Seaway National Bank closing a conspiracy, not very likely...

[VIDEO] What you see above was the only YouTube posting I have found so far that discusses the failure of Seaway National Bank. Where do I start in talking about what happened here?

This discussion is happening knowing our community - that is perhaps someone wanted to take Seaway Bank out. The host of the video above alleges that once the "Bank Black" movement took hold and those who supported that movement chose to start accounts at Seaway - in some cases closed accounts at larger majority-owned banks (and I won't explain what this means) - this itself started the regulatory scrutiny that shut Seaway down.

What I recognize is that Seaway was dying through the purchase of two failed banks earlier in this decade. Most banks fail due to an inability to recapitalize and it doesn't help that a bank handed out many loans to customers who couldn't afford to repay. Another indication that Seaway was dying is the leadership, there was a shuffle going on that it never recovered from - that is Seaway lost their longtime chairman and there was some shuffling at CEO. It's generally agreed that Seaway was a mess before the FDIC stepped in.

In the above video you will also see a report outside of Seaway the night of the closure. We see a representative of the new owners from State Bank of Texas indicating that they'll keep most jobs for now and they have great respect for what Seaway means to the community. However to be honest when they took command of the bank the next week they immediately started cutting jobs and it'll be a while before they finish.

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