Conference nyoss1::market_investing

102.0. "FDIC Help needed." by MAIL::FANGMAN (I'm not as think as you lost I am.) Fri Mar 13 1992 01:10

If this note doesn't belong here please pass it on ... it has nothing to 
do with investing.

	My father owns a business and farm in a small town in Iowa.  The bank 
in town was closed down 6 years ago by the FDIC.  As it turns out the president
of the bank was embezzling the FDIC's insurance premium and other board 
approved payments.   (Yes, the guy is in prison for 8 years.) 
	Anyway, the FDIC came into town and 'settled' many of the out standing 
loans.  They did this by "writing off" the loan balance above a mutually agreed
level -- agreed by the original lender, the FDIC, and the new lender.
	If you were not able to find a 'new lender' then the loans just sat 
with the FDIC.  NO PAYMENTS ASKED!!  NO ACTION TAKEN!!  Dad was able to get a 
new lender.  By then the FDIC was really in downhill slide - they lost the 
entire banks files 3 times - lost individuals files 20 or more times. etc. etc.
They sent appraisers out 7 times in three years to do appraisals - they were 
all lost or incomplete.  11 FDIC reps. have been assigned to this account.
	Lately, the FDIC was "close to closing this out" when two members of 
the board decided their appraisals were low and certainly the business was 
worth more.  My father has documented everything, made hundreds of phone calls, 
begged them to do anything with this to get it closed.  He is out of ideas.

	I cannot believe it takes 6 years to straighten out one loan for one 
business.  
 
Here are my questions:
	Is there anyway to force this issue?		
	Any suggestions on what to do next? 
	Who is in charge of the FDIC?  Who is over them?
	Any one have an IN at the FDIC? (brother-in-law, etc.)

HELP -- 

dave

    	Try your Congressman.  They can provoke any federal agency
    into action VERY quickly, if you deal with them politely.  A
    simple call to their office may amaze you with how rapidly their
    staff gets the ball rolling again.  It's a large part of their
    oversight responsibility for federal agencies.  Anything else
    is likely to be a large waste of time (as you have observed)!
    
    Dave Eklund
    

    re: .1
    
    >> Try your Congressman.
    
    That's been done.  Harken had a staff meneber worh=king with them
    until the presidentual campagn started, since then they seem to have
    lost interest.
    
    dave