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FDIC's Prompt Corrective Action Order Against Tennessee Commerce Bank

Saturday, November 12, 2011 - 8:12 AMTennessee Commerce Bank
In Calculated Risk Blog's update to its unofficial problem bank list, it mentioned that the FDIC has issued Tennessee Commerce Bank a Prompt Corrective Action (PCA) order. It already had an FDIC Consent Order filed against it in May 2011.

The bank admitted to the PCA in its 8-K filing to the SEC.

TCB's financial health has become worse since my last TCB post when it was offering a hot savings account special in March. At that time the Texas Ratio that we had calculated for TCB based on December 2010 data was 40.34% (below average). We had given it 3 stars. It now has a Texas Ratio of 103.86% (poor) and a 2-star rating based on June 2011 data.
Ken TuminKen Tumin5,473 posts since
Nov 29, 2009
Rep Points: 125,800
1. Tuesday, November 15, 2011 - 4:32 PM
Ken I appreciate your very timely post.  You surely are on top of TCB happenings!

I came here because of the mailing I received from TCB which, in essence, admitted to trouble.  I'm not sure what I should do and I will welcome help:

I've ridden two banks, in the past, into the dust.  In both instances the FDIC made everything good in a very timely fashion.  In both instances, though, I was not over the FDIC insured limit for a single person.

So I'm not sure I should hang on at TCB (I can get my money out now without penalty).  It's because I am over the limit and am relying solely on my beneficiaries to protect my account via FDIC insurance.  I have named enough beneficiaries to cover my entire balance with insurance.  But I am worried about, and I don't know what the FDIC will do in the event of bank failure, since they will need to ascertain that my beneficiaries are living.  It's the TIME delay that concerns me.  It could take weeks to process paperwork, given the FDIC always uses snail mail.  Meanwhile I would be missing out on a lot of interest!

Should I withdraw the money now . . . . or should I hang on??
shinobyshinoby9 posts since
Feb 7, 2011
Rep Points: 129
2. Wednesday, November 16, 2011 - 6:10 PM
Not much help here.  Guess nobody else is impacted.


I've pretty much decided to stick at TCB . . at least for now.  Did review my situation with them and got my accounts all up to snuff;  they are nice folks to work with.  Really too bad the bank is having such trouble.  Don't see much chance for better things until we get past early November next year . . and even after that nothing is for sure.

They mentioned to me some of their accountholders are not fully FDIC insured.  Amazing stuff.  
shinobyshinoby9 posts since
Feb 7, 2011
Rep Points: 129