According to a press release on the Fed’s website:
The Federal Reserve Board on Thursday announced an enforcement action against Farmington State Bank, of Farmington, Washington, and its holding company, FBH Corporation. In 2022, Farmington improperly changed its business plan without notifying the bank’s supervisors and obtaining prior approval for those changes. Farmington has previously announced that it will voluntarily sell its loans and deposits to the Bank of Eastern Oregon.
The Board’s action ensures the bank’s operations will wind down in a manner that protects the bank’s depositors and the Deposit Insurance Fund. The action also prohibits Farmington and FBH from making dividends or capital distributions, dissipating cash assets, and engaging in certain activities without approval from its supervisors.
The action is being taken jointly with the Washington State Department of Financial Institutions, the state supervisor of Farmington.
In a statement Farmington said,
[We] consented to the Federal Reserve order published today. All bank regulatory approvals for the assumption of deposits and the purchase of assets by Bank of Eastern Oregon of Farmington State Bank have been received. The transaction is expected to close by Aug. 31, 2023.
Blockworks pointed out that ‘Farmington made a commitment to both work with and help design IT infrastructure to “facilitate the third party’s issuance of stablecoins to the public in exchange for receipt of 50 percent of mint and burn fees on certain stablecoins, and took material steps to implement that memorandum of understanding,” the Fed said in a Thursday filing.’
The Economic Ninja commented on this news saying that this bank essentially tried to take the role of the Federal Reserve. Moreover, he had accurately predicted that another bank would fall by the third week of August, for which he was fairly accurate. He believes more banks like this are most likely to fall within this year and next as well.
AUTHOR COMMENTARY
It should be noted and reminded that this year, prior to the fall of Heartland Bank and PacWest several weeks ago, the last two banks to fall, the U.S. had already well surpassed the bailout money to these banks versus 2008. Granted this closure was a little different, but still speaks to the banking crisis we are in, and there will be more to come.
Do not listen to the media. I can assure you MORE banks will fall, and you and I will be on the hook for it, as always. The United States is being primed for the biggest banking collapse the likes of which have never been seen before, as I have covered in other reports. Stay sharp and get ready for it, because heads will roll when the domino effect kicks in.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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They are playing te-ter toter with the banking system; we are on top and the fat kid is about to hop off and down we all go. I’m sorry that some might not know what a te-ter toter is. but you can kinda guess.