I have included a link to an article from 2009 that helps with understanding the concept of “going dark” or voluntary delisting/deregistration. Click here to read this article. Keep in mind that it was authored in 2009.
I can usually decipher this stuff given enough time, but why doesn’t someone from the bank just come out and tell us why they are doing this?
There has been a lot of talk and confusion regarding the bank and receivership and conservatorship, etc.
Apparently some people think all that means is that the regulators would have another bank step in to replace Citizens to manage the bank, and it would be business as usual. That may be true in some instances, but there appear to be some other outcomes that could occur, depending on the circumstances. All of the possible scenarios do protect the insured accounts of the customers. The OCC policy and procedures manual, referenced below, lays it out pretty well, though there is a lot of room for interpretation. Read it for yourself and decide. Any banking experience here would be helpful.
Some of the contributors to this site have narrowed the scope on the concept under other posts. Click here for a fairly involved explanation from the PPM (policy and procedures manual) of the OCC. Towards the bottom of page 9 hits on the topic. This document also explains some of the enforcement actions to which Princeton National Bancorp, Inc. has subjected of late.
Read Section 38 h of the Federal Deposit Insurance Act . It is just over halfway down in section ” h 3″ “Conservatorship, receivership, or other actions required.”
This is from the otcmarkets.com page. The bank has apparently earned an even lower designation, OTC Pink Limited. A description with the warning sign follows. Thanks for the heads-up from a comment on the previous post.
Designed for companies with financial reporting problems, economic distress, or in bankruptcy to make the limited information they have publicly available.
The OTC Pink Limited Information® category also includes companies that may not be troubled, but are unwilling to meet OTC Markets Group’s Guidelines for Providing Adequate Current Information. Companies in this category have limited financial information not older than six months available on the OTC Disclosure and News Service or have made required filings on the SEC’s EDGAR system in the previous six months.