Success will not be tolerated!

The FDIC has given a negative review to a Massachusetts community bank with no delinquent loans or foreclosures on its books and no anticipated losses.  The "needs to improve" rating is a result of the bank being picky about lending, according to the FDIC's interest in the Community Reivestment Act.

Joseph Petrucelli, chief executive of East Bridgewater Savings since 1992, told the Boston Business Journal that his bank is "paranoid about credit quality."

Apparently that will get you a poor rating in the eyes of the FDIC.  The agency also faulted Petrucelli for not promoting the bank's loan products enough.  East Bridgewater Savings does not have a website and offers fixed rate mortgages.

In comparison to others in the lending business, EBS only made an average of 28 cents in loans per dollar deposited over the last five years while its banking competitors had a 90% average loan to deposit ratio, according to Fox News reports.  The bank also turned a profit last year of $87,000.

The rare "needs to improve" rating is a slap in the face to a bank that chose not to make risky loans at the strong suggestion of the federal government.  The Community Reinvestment Act is of 1977 is "intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations." as stated on the act's website.

The key words here are "consistent with safe and sound banking operations."  Petrucelli successfully navigated the banking collapse in this country by keep his bank safe and using sound banking procedures.  How is that worthy of a poor rating by the FDIC?

The CRA is a major part of why lending in this country is in such crisis.  In the late 1970's, U.S. banks began writing loans, and consequently writing off loans, to non-creditworthy customers as a result of the federal government strong-arming them into making poor business decisions.  The economic crisis that the Obama administration is so often pinning on former President George W. Bush has deep roots in the Carter years.  The practice of writing bad mortgages, loaning money to those who couldn't afford to pay it back, and catering to the whim of Congress is precisely why the American banking system is in trouble today.

A message to our corrupt politicians:  Leave our money alone.  Leave our businesses alone.  Stop punishing success.  Let capitalism work.