Issa Probes $394 million Broadway Bank Loss

This story appeared in Bank Digest.

House Oversight and Government Reform Committee Ranking Member Darrell Issa, R-Calif., has asked Federal Deposit Insurance Corp. Chairman Sheila Bair to respond to questions about the timing and events behind the FDIC takeover of Illinois-based Broadway Bank at the cost of $394.3 million dollars. “The political circumstance and unusually high cost to the FDIC for a bank of its size necessitates answers from the FDIC about this takeover,” said Rep. Issa. “American depositors, who ultimately paid nearly four hundred million dollars for this collapse, deserve to know if closing the bank sooner would have cost less and, if so, why this did not occur and who benefited from the decision.”