Layoffs, businesses closing, pay cuts, and lost pensions. Those are just some of the grim results of an awful economy. Many experts cautiously say the recession is over… but I think most of us are too beat up from the bad economy to see it, let alone celebrate it. Everyone I know is still being incredibly cautious with their cash.
Over the weekend, customers of Bradford Bank learned their bank has failed. Bradford is a local bank that has been in our community for 106 years. Federal regulators shut the bank down Friday after being given two weeks to sell or be taken over. Now – all nine branches are under M & T Bank management. M & T and the FDIC will share the losses on about 338 Million dollars worth of Bradford’s loans and other assets.
So that’s the background. Customers are told they won’t notice a difference. A friend of mine who has banked at Bradford for years is pretty angry. She said a heads up would have been nice. She added if she wanted to belong to a big bank, then she would have banked to M &T a long time ago.
I find all of this interesting because we recently ran a story on a bank in Texas that is thriving, despite the fact that they don’t even have an ATM. Oakwood State Bank has been in business for 99 years and is dubbed the smallest bank in America. There are three employees (the youngest is 71) and they use a typewriter. The guy who runs the bank says if you don't get your money by closing time (which by the way, is 3 o'clock) you're out of luck. He believes if you need cash after hours, you're probably up to no good. I find that amusing. But I also find it intriguing. It is a bank that has no frills, no convenience and is in great shape. It makes you wonder if we just need to simplify.
