That's One Way to Beat Them

More evidence that the FDIC has gone off the deep end:  a well-performing community bank surrendered its charter and sold its branches out of sheer frustration with the regulators.  This bank was committed to its community, focused on loans to small businesses, and was profitable even through the downturn.  Despite all this, the FDIC slapped them with a number of ridiculous demands that would be nit-picking even for a troubled bank.  How to fight back?

"[Main Street Bank Chairman Thomas] Depping plans to set up a new lender that will operate beyond the reach of banking regulators—and the deposit-insurance safety net. Backed by the private investment firm of Microsoft Corp. co-founder Paul Allen, the company won't be able to call itself a bank, but it will be able to do business the way Mr. Depping wants."

Main Street transferred 85% of its current loans to the new, unregulated company and will continue to focus on loans to small community businesses.

This is what it has come to.  Community banks are being frustrated out of businesses.  But at least Main Street can continue to do what it does best.