Politics & Government
Palos Park Officials Mourn Loss of Local Bank
At a village board meeting, Palos Park officials expressed frustration with the federal government over Palos Bank and Trust's recent takeover by the FDIC.
The recent takeover of Palos Bank and Trust continues to resonate across the community. At the Palos Park Village Council meeting on Aug. 23 village officials expressed support for the bank's former owners and frustration with the federal government.
The Federal Deposit Insurance Corporation shut down Palos Bank and Trust on Aug. 13 and First Midwest Bank immediately assumed control of the bank's deposits and assets. Palos Park officials greeted the loss of the Palos-area institution with a sense of frustration.
"I am just tremendously sorry that this has happened," said Mary O'Connor, village finance commissioner. "Our small community banks, which are one of our many lifelines, are just tossed to the dogs."
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The council unanimously approved a measure to open two new checking accounts at Standard Bank. The village will keep its accounts at the former Palos Bank and Trust until O'Connor meets with First Midwest and determines if the company is satisfactorily committed to community outreach efforts. That meeting has yet to be scheduled.
O'Connor spoke of a need for the federal government to devote resources to help community banks, not just large national ones.
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"I think the government is taking over community banks at such an alarming rate," O'Connor said. "Communities, they just need those banks—it's essential."
Building and Public Property Commissioner Jim Pavlatos cited the numerous local organizations and events Palos Bank and Trust has sponsored over the years while recognizing the bank's former owners, the Paetow family.
Pavlatos also remarked that a lack of local banks makes it difficult for new businesses to acquire loans.
"The vacancies are in part because [new businesses] can't get funding," Pavlatos said.
Both Mayor John Mahoney and Police Commissioner Dan Polk expressed their agreement with O'Connor and Pavlatos' statements.
Palos Bank and Trust was founded in 1956 and operated five branches. All branches remain open and customers can continue to bank at their branch as normal.
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