Minor Thoughts from me to you

Main Street had profits of $1 million in the second quarter and wrote off 1.25% of its loans as uncollectible. That is below the industry's charge-off rate of 1.82% in the FDIC's data for the first quarter, the latest available. The bank has earned nearly $11 million in the past year.

In July 2010, the FDIC slapped Main Street with a 25-page order to boost its capital, strengthen its controls and bring in a new top executive. Regulators also said the bank was putting too many eggs in one basket. Mr. Depping says regulators wanted the bank to shrink its small-business lending to about 25% of the total loan portfolio, down from about 90%.

There’s nothing quite like the arrogance of telling a successful business that it’s doing everything wrong and that it needs to change the cornerstone of it’s business model. The bank’s chairman is now planning on giving up the bank’s charter and selling the branches to other local banks.

This successful local business was killed by the too strict, cookie cutter, one-size fits all financial regulation coming out of Washington. Heckuva job guys.