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CBA’s Statement Regarding the Purchase and Assumption of United Western Bank
Jan.21.2011
NEWS RELEASE
Jan. 21, 2011
CBA’s Statement Regarding the Purchase and Assumption of United Western Bank
Associate all quotes and lifted material to:
Don Childears, President/CEO, Colorado Bankers Association
“This is a prime example of a seasoned and time tested resolution system at work. Under these circumstances, customers will experience little if any noticeable changes and Colorado will see the emergence of a new bank with many resources eager to compete to service our state’s economy.”
“It appears customers will have the least impact one can imagine from a significant event like this. FDIC has made this transition as seamless as possible with uninterrupted access to funds, one institution assuming all existing loans, and an already up-and-running 1-800 number to answer all questions.”
“A bank closure will inevitably occur from time to time – in good economic conditions and bad. The FDIC’s resolution process for such a closure has been tweaked and perfected over the past 76 years to ensure that customers are protected and the least amount of disruption occurs to the community when a bank encounters tough times. Most importantly, every bank customer can rest assured knowing all deposits are always insured up to at least $250,000 – no matter where they bank.”
“The most important questions one should ask when hearing about a bank closure are: ‘will the community have access to banking services,’ and ‘are my deposits protected?’ As exemplified by this scenario, the highly competitive banking industry has grown to the point where Coloradans don’t just have convenient access to banking services, but have a choice of where to bank. One, or even a handful of separate closures, generally doesn’t affect that.”
“Additionally, Coloradans can rest assured knowing that there is no stronger, more reliable guarantee than FDIC insurance. Our deposits are safe no matter what bank they are in, how the closure is resolved, or what is going on in the economy.”
“As in this case, the FDIC’s methodical bank closure process helps manage the uncertainty or concern that can accompany any business that closes its doors. The time tested process allows a bank that has fallen on hard times to be absorbed by a stronger healthier financial institution that will be able to better service the community.”
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The Colorado Bankers Association represents over 90% of the $100 billion in assets within the 165 Colorado banks. On behalf of the 19,700 men and women who work in Colorado’s banks CBA works with government seeking a better banking industry in this rapidly changing environment. CBA also provides banking-specific information and education, offers bank insurance, anti-fraud efforts, and numerous other miscellaneous services.