Bye bye, Asheville Savings Bank

According to the manager at our branch, the proxy votes have all been counted and the move to trade Asheville Savings Bank on the stock market has been "unanimously decided.” (How can it be unanimous if we voted against it?)

What's so bad about this? Well, the stock market is much less stable than the bank's previous customer-owned Mutual Fund structure. If Asheville Savings Bank's stock tanks, customer accounts will still be OK because they're FDIC insured. But wait — FDIC is funded by our tax money. If the bank's stock fails, it would cost taxpayers millions. Though technically illegal, insider trading continues unchecked on Wall Street, so while taxpayers suffer, traders in the know could profit handsomely if the bank's stock tumbles.

I'm mad enough at Wall Street. I didn't want Asheville Savings Bank to be part of that corrupt institution. Now that they are, Asheville Savings is no longer a local bank.

My family will move our money to a truly local bank or credit union.

— David Lynch


Thanks for reading through to the end…

We share your inclination to get the whole story. For the past 25 years, Xpress has been committed to in-depth, balanced reporting about the greater Asheville area. We want everyone to have access to our stories. That’s a big part of why we've never charged for the paper or put up a paywall.

We’re pretty sure that you know journalism faces big challenges these days. Advertising no longer pays the whole cost. Media outlets around the country are asking their readers to chip in. Xpress needs help, too. We hope you’ll consider signing up to be a member of Xpress. For as little as $5 a month — the cost of a craft beer or kombucha — you can help keep local journalism strong. It only takes a moment.

Before you comment

The comments section is here to provide a platform for civil dialogue on the issues we face together as a local community. Xpress is committed to offering this platform for all voices, but when the tone of the discussion gets nasty or strays off topic, we believe many people choose not to participate. Xpress editors are determined to moderate comments to ensure a constructive interchange is maintained. All comments judged not to be in keeping with the spirit of civil discourse will be removed and repeat violators will be banned. See here for our terms of service. Thank you for being part of this effort to promote respectful discussion.

6 thoughts on “Bye bye, Asheville Savings Bank

  1. indy499

    Huh? The stock will perform poorly if the company performs poorly. There is no greater or lesser risk of failure due to the new corporate structure.

  2. cecilbothwell

    Don’t know how it could have been “unanimous” since I voted against it to.

    Will be moving my money as well. I have long patronized Asheville Savings BECAUSE it was a local bank.

    Time to move on.

  3. Wow

    Seriously? SERIOUSLY???

    The bank decides to issue shares of stock to raise capital and you people are abandoning it for trying to improve it’s financial strength?

    “Wall Street is a corrupt and evil institution” sounds like the rhetoric of someone who once talked to a guy who knew a guy who skimmed through the Communist Manifesto during his half semester at community college.

    The price of the stock is tied entirely to supply and demand. There is a set amount of shares to supply the market, and demand will dictate how high or low the price goes.

    These comments just prove how ignorant you people are about Wall Street and capitalism in general.

    • sharpleycladd

      Demutualizing a bank can happen for a number of reasons, one of which is featherbedding current management with lotsa options, which incentivizes a “greatest hits” approach to reporting results, by which I mean hiding bad loans, valuing other assets way beyond market, and other “investment strategies” that led to the meltdown that devalued most folks’ 401k’s and somehow Mr. Obama is to blame.

      I actually read the prospectus for the Asheville Savings demutualization, thought it was really bad for current owners (depositors), and voted against it. The “unanimous” shareholder vote is the kind of total confection we can likely expect in their 8-K’s.

      If you were not ignorant about Wall Street and capitalism in general, I’m sure you would have voted against it as well. Blanket statements like “the price of the stock is tied entirely to supply and demand” lead me to believe you might not have the understanding you think you do.

  4. john

    “…and somehow Mr. Obama is to blame.” (You don’t get out much, do you?)

Leave a Reply

To leave a reply you may Login with your Mountain Xpress account, connect socially or enter your name and e-mail. Your e-mail address will not be published. All fields are required.