Is Steve Schultz the guy you want leading on the Ohio River Bridges Debacle? He’s currently the executive director of the bridges “authority” but has, ahem, a problem or two.
He was vice president and general counsel of Irwin Union Bank when it went belly-up, costing taxpayers $850 million.
Columbus-based Irwin Financial Corp. (NYSE: IFC) has filed for Chapter 7 bankruptcy protection. The move comes after federal and state regulators took control of Irwin Financial Union Bank and Trust Co. and sold the assets to First Financial. The Ohio-based bank says customers with deposits at Irwin will not lose any money as it takes over the accounts.
On September 18, 2009, the Indiana Department of Financial Institutions (the “DFI”) closed Irwin Union Bank and Trust Company (“IUBT”), the state chartered bank subsidiary of Irwin Financial Corporation (the “Corporation”), pursuant to Section 28-1-3.1-2(a)(6) of the Indiana Code, and appointed the Federal Depository Insurance Corporation (the “FDIC”) as receiver of IUBT
The collapse of Irwin’s two units marks the 93rd and 94th failures this year of U.S. federally insured banks. The FDIC took on Irwin’s riskiest assets and expects to book an $850 million charge to its insurance fund in connection to the failure.
Irwin Financial had been in financial decline for more than a year, in part because of steep losses on home equity loans. Over the last six quarters, Irwin posted losses totaling more than $450 million. Founded in 1871, it was one of the state’s oldest banks.
Here (Warning: External PDF Link):
On September 15, 2009, Irwin Financial Corporation (the “Corporation”) and its principal depository institution subsidiary, Irwin Union Bank and Trust Company (“IUBT”), entered into a Cease and Desist Order (the “Order”) with the Board of Governors of the Federal Reserve System (the “Federal Reserve”) and the Indiana Department of Financial Institutions (the “DFI”).
IRWIN FINANCIAL CORPORATION (Registrant)
Date: September 16, 2009 By: /s/ Steven R. Schultz
STEVEN R. SCHULTZ
First Vice President and General Counsel
Totally the guy we need making a $4-$5 BILLION decision for us.