Nebraska Banking Commissioner John Munn said Sherman County Bank, which had four offices in central Nebraska, became the first state lender shut in two decades because of losses stemming from commodity trading by about 30 of its farm customers.
“This closing is not indicative of the general condition of our Nebraska banks,” Munn said, according to the Omaha World Herald. “I do not believe this is the tip of an iceberg.”
Bloomberg
Now, when somebody in "authority" tells you "Don't worry, this is NOT the tip of the iceberg", what is your response? Mine is DUCK AND COVER! LOL.
No doubt, farmers in Nebraska trying to Hedge their bets probably have risked a fortune in the commodities markets. Not only could this speculation take down the Banks the y use, but it could put some very large agribusinesses into receivership.
I don't think we have heard the last of this story. These Icebergs seem to come floating down the Fjord here more regularly all the time. Methinks the Financial Glacier is Calving.
Reverse Engineer
