The FDIC Puts the Smack Down on Firstrust and JDA Asks Where's Trusty?

Monday, November 30, 2009 , , , 0 Comments

Oooooh, I bet they are really shaking in their boots. $10,000 is a whole shit ton of money.

Philadelphia Business Journal:

Firstrust Bank was fined $10,000 by the Federal Deposit Insurance Corp. for regulatory violations, according to information released by the FDIC Friday.

The FDIC said that it presented its findings to Conshohocken, Pa.-based Firstrust and the bank agreed to a civil penalty. The regulator did not specify the violations but it appears to be connected with mortgage lending. The FDIC said the violations involved sections of a Federal Reserve System regulation which require certain mortgage lenders to disclose data regarding their lending patterns.

Firstrust released a statement Monday afternoon.

“While the bank was operating in a good faith manner that we believe was consistent with regulations, the FDIC saw fit to assess a modest monetary penalty for technical loan application data reporting errors. These errors had no impact whatsoever on Firstrust’s customers. Firstrust has paid the penalty and revised its reporting process as requested by the FDIC examiners.”

Jr Deputy Accountant expresses her apologies for being unable to attend last year's search for a Firstrust mascot ("Trusty" - you can't make it up, people).

Play "Where's Trusty?" here. It'll make you feel better - if momentarily - about the crap these asshats get away with. Until you see Trusty's letter to reader "Susie" who wants to know why she should hand over her piggybank to the big bad bank.

Dear Trusty,
I’ve got a great stash of cash in my piggybank. I save my allowance to buy video games. What’s the point of moving my money to a bank?
Susie Saver

Dear Susie,
I’m so happy to hear you’re saving your allowance. The big difference between your oinker and a passbook account is something called interest. Interest is money a bank pays you for keeping your money with them. They pay you a percentage of what you deposit into your account. You earn money while saving money.
Firstrust doesn’t charge any fees for their youth passbooks FirstSavers account for the first two years. You can download a $5 TRUSTY FIRSTSAVERS COUPON for your new account, right here online! The minimum amount you need in the account is $25. Stop by Firstrust and start saving today!

P.S. When can I come over and play some of those video games?

Your friend,

Dear Susie,

I really hate to interrupt here but don't listen to that guy. He's a miserable dude who earns slightly more than minimum wage writing website copy for the bank.

The reason Trusty wants you to put your piggybank in his bank is because then he can turn around and use 90% of it to make loans - loans that apparently have broken the rules. Are you sure you want your piggybank to fund that kind of thing?

He's right that it's better to earn interest than leave your video game stash sitting in your piggybank but can you slip this note to your parents and ask them to research the bank they decide to help you put your money into?

And be sure to mention to them that the FDIC - like Santa and the Easter Bunny - is totally made up. You're welcome.

Jr Deputy Accountant

P.S. Don't let him come over and play video games. That's always how it starts. I'll tell you how it ends when you're older.

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.