February 7, 2012

Contact: Casey Bowman - (202) 225-3536

Herrera Beutler Continues Push for Answers on Bank of Clark County Fallout, Rialto
Jaime asks financial oversight committee to examine FDIC loan sales to Rialto

Washington, DC - Today Congresswoman Jaime Herrera Beutler requested a Congressional hearing to examine the FDIC's multiple loan sale transactions with Rialto Capital Management that have impacted communities across the country.

Jaime sent a joint letter with Congressman Lynn Westmoreland (R-GA) to the House Committee on Financial Services' Subcommittee on Oversight and Investigations to request a hearing on the FDIC's loan sales to Rialto. Borrowers from across the country have fallen victim to the harsh tactics of Rialto once the east-coast entity assumed control of loans from failed local banks. In Clark County, several borrowers who hoped to work with Rialto on repaying their loans hit dead ends and lost their businesses.

"Communities across the nation are still reeling from what happened when Rialto purchased the loans of failed local banks," said Jaime. "A Congressional hearing would give us a much better understanding of what exactly took place when the FDIC sold loan packages to Rialto. I appreciate the FDIC's ongoing cooperation in this matter, but we still have many questions that must be answered.

"Once we more fully understand what took place, we can determine whether Congressional action can help prevent the kind of scenario that unfolded in Clark County from happening again. The small businesses that were affected represent people's jobs and livelihoods."


In March of 2011, Jaime began looking into the fallout from Rialto's purchase of the Bank of Clark County loans. She contacted the FDIC, and met in person with the Deputy to the Chairman of the FDIC, who promised to do a deep-dive review of Rialto's actions in Clark County.

In September of 2011, Jaime submitted details of the fallout from Rialto's actions for a congressional field hearing held by the House Committee on Financial Services on this matter.

Jaime has also made her office available to open formal cases for people having trouble with Rialto. While several have approached her office, she has been unable to secure a positive outcome for more than a few.