FDIC Seizes Bank Hours After Geithner Gives Them $50m

This is just an unbelievable naked emperor moment. Pretty much sums up our 'through the looking glass' world of insane bailouts and subsidies in one event.

Park National Bank of Chicago received $50 million in tax credits to encourage investment in poor communities at an Oct. 30 ceremony attended by Geithner. Hours later, though, it was seized along with eight other banks around the country that formed part of a holding company called FBOP Corp. and sold to U.S. Bancorp (USB Quote).

One financial services executive, who did not want to be on the record for fear of running afoul of regulators, accused the FDIC of timing the closure as it did in a deliberate effort to embarrass Geithner.

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