Friday, July 17, 2009
Executives at Olathe, Kan.-based Security Savings Bank have screamed foul for several years—but the Kansas Regional Office of Thrift Supervision has been turning a blind eye to alleged misconduct at the bank, according to numerous sources.It's a pretty interesting read with the added bonus of a nice collection of the bank's promotional material, neatly assembled into a collage, grain fields and all.
As confidence erodes in the nation’s banking system, and taxpayers have watched as banking giants Washington Mutual and IndyMac fail, many are now left wondering how government regulators could not have seen this coming.
But what about a case where a bank’s own executives have continued to proactively knock on their primary regulator’s door, with little to no response? Kansas’ Security Savings Bank appears to be one such case—and now the thrift is booking ongoing million dollar quarterly losses, distributions have dried up, and investors in the bank’s holding company recently settled in their favor in a suit against the banks chairman- they had sued for securities fraud.
The Kansas-based, federally-chartered savings bank is chaired and owned by longtime real estate developer and home builder Donald H. Bell, Sr. In a brochure touting the bank’s purpose in the community it serves, Bell markets the fact that “God had directed him” to buy a small Kansas bank, so that he may forward the bank’s profits towards Godly ends.