FDIC: Butte Community Bank Must Boost Capital (or be forced to Merge)

ChicoER Editorial ^ | 6/28/10 | Mark Sorenson

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The Federal Deposit Insurance Corp. on Friday released information about enforcement actions on banks in May, including a prompt corrective order and a consent order for Butte Community Bank.

The prompt corrective order notifies the bank that it is significantly undercapitalized as of its balance sheet at year-end 2009.

The bank must raise money by selling bank stock or to entertain a merger that will bring the bank's capital levels to at least the regulatory minimum.

Founded in 1990 in Chico, the bank has 15 branches in 11 cities in Northern California and a loan production office in Citrus Heights.

The bank is a subsidiary of Community Valley Bancorp (OTCBB: CVLL) whose share price was down 33 percent this morning. The stock was trading at 30 cents a share....

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This is the comment I left about the article

(from the article)
The bank must raise money by selling bank stock or to entertain a merger that will bring the bank's capital levels to at least the regulatory minimum.

I find this statement to be quite telling. For three reasons.

1.) The liberals Democrats like Barney Frank & Chris Dodd who have controlled the banking committee the last few years, and the Clinton Adm that forced the rules to be put in place that forced banks like BCB to give risky loans to those who had no way to guarantee they could make the payments. Thus BCB is now incurring the loss you point out Mark, that could be forcing them to merge with another most likely larger bank.

2.) The very merger that is being pushed upon BCB is being done so, again, by the very same politicians, Frank, & Dodd, who have derided on the floor of the United States House of representatives these types of mergers.

3.) These two Banking Committee war lords Frank, & Dodd, are the very ones who set the Capital regulatory minimum level that BCB and other smaller banks like them who's main purpose of existing is to give loans for homes and businesses.

Does everyone remember the Movie, "It's A Wonderful Life". BCB is what George Baily was, and liberals like Frank and Dood, along with the Clinton Adm in the "90"s has destroyed them in the attempt to destroy the middle class of America.

It is downright criminal what these two men have been able to get away with while being the supposed watchdogs of our banking system. But then again, this is what happens when we allow Communists and Fascists to run the country and set the rules of the game.

Wake up America, because when you don't pay attention to what a person believe in, you get the4se types of men in power.