Hello, Westsound Is Now Kitsap Bank!

Just two hours after we got back from a day-trip to Bremerton and its beautiful waterfront, we got an email announcing that Bremerton's Westsound Bank was defunct. The Washington Department of Financial Institutions (DFI) took possession, "citing severe asset problems, significant losses and inadequate capital," brought in the Federal Deposit Insurance Corporation (FDIC), and the FDIC sold Westsound to Kitsap Bank of Port Orchard.

Westsound had been trying to pull out of its real-estate-driven tailspin, but its non-performing assets actually rose over the past year from $72 million to $127 million. (The Seattle Times also notes that Westsound's parent company, WSB Financial, is not likely to last much longer, either.)

Westsound depositors have access to ATMs--and can write checks--over the weekend, and when Monday rolls around will be official members of Kitsap Bank.

Meanwhile, crazed Seattle Times commenters are arguing that the FDIC-backing of the failed bank is just the first step in the fascist Obama administration's nationalization of all banks--starting with small ones, so we don't notice. Freedom isn't free, America. Demand to lose everything when your bank closes!