Pulaski Savings Bank, the latest addition to the growing list of busted financial institutions, has been shut down by the Illinois Department of Financial and Professional Regulation, with the Federal Deposit Insurance Corporation (FDIC) stepping in to cover the estimated $28.5 million in losses.
The bank’s sole office will reopen on Saturday, January 18, 2025, as a branch of Millennium Bank, with depositors automatically becoming customers of the new bank. The FDIC has assured that all deposits will continue to be insured, and customers can access their funds through checks, ATMs, or debit cards.
The FDIC has entered into a purchase and assumption agreement with Millennium Bank, with the latter agreeing to assume all deposits for a 4.61 percent premium. The deal also includes the purchase of approximately $45 million of Pulaski Savings Bank’s assets, with the FDIC retaining the remaining assets for later disposition.
The closure of Pulaski Savings Bank marks the first bank failure in the nation this year, with the last failure being The First National Bank of Lindsay in Oklahoma on October 18, 2024. The last bank failure in Illinois was Washington Federal Bank for Savings in Chicago on December 15, 2017.
The FDIC has attributed the higher estimated cost to the Deposit Insurance Fund (DIF) to suspected fraud. The FDIC’s preliminary estimate of the failure will change over time as assets are sold.
Customers of Pulaski Savings Bank can contact the FDIC toll-free at 1-866-314-1744 or visit the FDIC’s website for more information. The FDIC’s phone number will be operational from 9:00 a.m. to 5:00 p.m., Monday through Friday, and from 9:00 a.m. to 7:00 p.m. on weekends.
The FDIC’s actions will provide relief to the depositors of Pulaski Savings Bank, but the closure of the bank serves as a reminder of the importance of prudent financial management and oversight. As the Grimy Times will continue to monitor the situation, one thing is clear: the bank’s dirty deeds have caught up with it, and the FDIC is footing the bill.
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Key Facts
- Agency: FDIC
- Category: Fraud & Financial Crimes
- Source: Official Source â†â€â€ÂÂ
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