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Suburban Federal Customers Concerned

Crofton area customers of Suburban Federal Savings Bank are bound to have questions.  Who wouldn’t when the Feds take over your bank, as they did Suburban Federal earlier today.  The bank is/was headquartered on Route 450 in Crofton.

Local newspapers had been mentioning the possibility all week, yet I’m sure customers were just as hopeful as bank officials that the matter would be resolved in time to avoid this situation.

So what’s next?  Is your money safe?  Can you make withdrawals? Should you wait ‘til the dust settles to make any deposits?  To whom will you make loan payments?  These are just some of the questions asked by folks who banked with Suburban Federal.

I don’t pretend to have any definitive answers, since I have no expertise in finance beyond real estate, but I can tell you the Baltimore Sun is reporting that “The FDIC arranged the sale of all of Suburban’s deposits and its seven branches to the Bank of Essex in Tappahannock, Va. That means Suburban’s business will go on as normal Saturday, though under a different name.  The Virginia bank also bought most of Suburban’s assets at a discounted price and many of its loans, according to the Federal Deposit Insurance Corp.”

Baltimore Sun financial columnist Jay Hancock addressed Q&A for Suburban depositors, borrowers in his blog tonight, and I know he’s more knowledgeable about these matters than I am.   For that reason, I encourage Suburban Federal customers to click through and read his post.

He made another post earlier tonight on this takeover, as well:  RIP Suburban Federal Savings Bank

UPDATE 2/2/09:  Suburban’s Transition into Federal Control Goes Smoothly (Baltimore Sun article)

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