Unfortunately in subsequent conversations with the FDIC, they seem reluctant at this stage to get into specifics. When asked how/when we would know if the FDIC insurance applies to deposits via HOA Management Companies, they said - "when a claim is made" - in other words when the horse has bolted.
It would have been very easy for Mutual of Omaha to have honored the subpoena to testify at the OAH Hearing on bank records and explain all this. But strangely they let Carpenter Hazlewood, who were not representing them, object. During the course of that proceeding, Carpenter Hazlewood intentionally misrepresented certain facts to the Judge. In the absence of any response from them, we are simply left with the conclusion Carpenter Hazlewood lied. For details click HERE
The only way you can be sure the FDIC insurance flows through is to ensure the bank has the Association's Tax EIN in its records and at least one Board member is an account signatory
Trumps recent Executive Order this week suggests a totally different attitude taking shape with this administration on bank failures. This will manifest itself later in the year as the transition takes effect.
Letter to Gene Twellman, Chief Counsel for Mutual of Omaha Bank
- None of your account documentation identifies the fiduciary relationship between the Mgmt Co and the depositor, as required by the FDIC, even when the account opening document does provide for that. See ATTACHED
- At no point have we ever been supplied with account documentation that shows any linkage between and HOA’s EIN # and a deposit with you. See same package.
- Furthermore Ms. Ryan’s letter ATTACHED also had a number of glaring items such as
- She does not appear to know the true legal status of the HOA be it a Condominium or Planned Community.
- So what SIC code applies…that for an HOA, Condominium or …a Management Company?
- I have never seen uninsured depositors paid out – Why were they treated that way with First National Bank of Arizona?
- We have a new Sheriff in town in Washington. I personally doubt Too Big To Fail will survive two Trump terms. So my question is - are you assuming it’s business as usual in Washington and they would play by the old rules in future bank failures?
- If I am correct - of what value are your assurances?