Uh-Oh. Nassau depository bank fails. (With snarky update about Barney Frank)

                                                                                    



It's probably too soon to panic.

But, the collapse of Silicon Valley Bank on Friday led many to wonder if there were going to be other bank failures despite federal authorities assuring everyone that the economy remains strong and the California bank's financial troubles were contained.

Today Signature Bank of New York was shut down by New York State regulators, the U.S. Treasury and FDIC announced.

In October, the Nassau legislature approved a list of banks for deposit of county taxpayer funds. Yes, Signature was among them. (see below)

News reports say the feds will guarantee all deposits. But who will ultimately pay that guarantee?

Financial pundits say Signature has been under financial pressure for weeks.

Did Nassau treasurer move any money it may have had in Signature? Did the Comptroller flag it.

The county executive's spokesman did not respond to an inquiry about Nassau and Signature. 

And where's NIFA? You know, the Nassau Interim Finance Authority, the state appointed financial control board that is supposed to be make sure Nassau is solvent. 

Again, it's too soon to panic. But it may be time to worry.

                                                                               






Update:  Snarky but couldn't resist:


President Joe Biden Monday morning assured worried Americans in a televised address that his administration was ensuring that the banking system is safe. He ended his remarks by saying, "During the Obama-Biden administration, we put in place tough requirements on banks, like the Silicon Valley bank  and Signature Bank, including the Dodd-Frank law to make sure the crisis we saw in 2008 would not happen again."

Biden was referring to the banking regulation reforms sponsored by then U.S. Senator Chris Dodd and then U.S. Rep. Barney Frank.

Guess who is a member of the board of Signature Bank: Barney Frank.

Although Biden blamed the former administration of Donald Trump for weakening some of those regulations, Frank was right there to see that Signature followed them.

Biden also called for the firing of the management of the Silicon Valley and Signature banks. Does that include Frank?

                                                                            


   




 

 


Comments

Post a Comment

Popular posts from this blog

CSEA retirees file suit to stop new contract insurance change (Updated)

Image
Civil Service Employee Association retirees today were in court attempting to stop a change in health insurance included in a new union contract scheduled to take effect Jan.1. The "Nassau Retirees Legal Fund" and eight other CSEA employees argue in a class action lawsuit filed today against Nassau and County Executive Bruce Blakeman in Nassau Supreme Court that they face  " imminent and irreparable medical, emotional, and financial harm because the County intends to deprive them of promised health benefits in 2024." The new contract negotiated between the union and Republican County Executive Bruce Blakeman and ratified by members in August changes the health insurance from New York's Empire plan -- which provides platinum coverage -- to the New York Excelsior plan. The Excelsior plan is more costly for union members but less expensive for the county.  Update:  The state, meanwhile, has increased rates for the Excelsior plan -- in come cases by more than 40 pe
Read more

Nassau CSEA contract deal -- talk of the county for two days -- finally announced (UPDATED)

Image
Talk around Nassau County for the past two days has been that Republican County Executive Bruce Blakeman had struck a new labor agreement, signed Monday, with the county's largest union, the Nassau Civil Service Employees Association. The CSEA, which include most non-law enforcement county employees, has been working without a contract since the end of 2017. As of June, there were 3,359 fulltime CSEA members. An announcement went out late today but it didn't say much: A spokesman for Republican County Executive Bruce Blakeman did not respond to an email today asking when the CSEA deal would be announced. Everyone is looking at the CSEA because exempt employees -- county workers who are hired and fired at will -- traditionally are given the same benefits as the union members. But the exempts are not happy with some of the rumors about the agreement: one is that the CSEA will take a lesser health insurance plan in return for an upfront payment, perhaps of $1,500, for each member.
Read more

Eisenhower Park restaurant to be run by D'Amato client

Image
                                                                                A Manhasset group with ties to the food service business has won its bid to run a county-owned restaurant, cigar club, and golf concessions in Eisenhower Park,  replacing longtime operator Anthony Capetola. Capetola, a colorful Republican lawyer, has operated Carltun on the Park since 1995 through various license agreements and extensions under four different county executives, Republican and Democrat. But the county selected EGB Hospitality LLC of Manhasset from two proposals for a new 15-year operating license that begins this fall, with another five-year option, according to the deal submitted to the county legislature for approval on Monday. Lawyer Elias Trahanas, of Great Neck appears to be the lead principal in the five-member EGH group, along with his brother Bobby.  EGB Management Team Both Elias and Bobby trace their food service roots to the family-operated Golden Reef Diner in Rockville Centre, s
Read more