What you see here folks is our wonderful government at work
It's sad to see HCBK go. Here is a bank that never dealt in subprime or alt-A loans that were at the center of the financial meltdown. A bank that kept its loans on its balance sheet and did not sell than off to syndicates. A bank that never took TARP or needed it. A bank that was a model of efficiency. The reward for all this is a complete desruction of its business plan by the government by driving interst rates artificially low making interest rate spreads so low that earnings are minimal and all existing customers refinace at low rates to boot. The bank can't even buy loans for its portfolio because Fanny and Freddie take 90% of all loans, mostly the good ones. Here a bank that provided a service to the community for over 100 years and is driven out of business by Mr. Bernake and our government.. If you are looking to blame someone blame the Feds. The community banks in this country are in a death spiral.
Your absolutely correct. Look at all the regulation put on the banks when the problem has always been with freddie and fanny mae and still is. Bernake and the fed are destroying the elderly that worked and saved expecting a 4 to 6 percent save return on certificate of deposits, these people are now spending there capital. So much for doing the right thing your whole life.
Yes, Uncle "BEN" put it to HCBK but that is peanuts compared to the millions of savings in this country who thought saving for their retirements was the right thing to do so the governments would not have to support them when they retired now Uncle "BEN" by using the government to keep interest rates low "hopefully" to get the economy health again has also done the savers in. Our governments (federal/state)operate on DEBT. Most companies operate on DEBT. Most citizens operate on DEBT. All the government really wants is to get the economy health again so they can collect more taxes so they have more taxes collected to waste.