BAILEY A SUICIDE AFTER FED REJECTS BAILOUT FOR BUILDING & LOAN

Paulson, Bernanke Deflect Criticism

The sudden, tragic end of a banking icon sent shudders through a shocked nation yesterday as the depth of the current mortgage crisis hit home, even to millions who have so far been unaffected.

George Bailey was, for over 60 years, the ‘kind face’ of the mortgage industry. His story inspired three generations following the success of the 1946 Frank Capra movie “It’s A Wonderful Life”, the bio-pic that told the story of Bailey’s early life and his struggle, against seemingly insurmountable odds, to save his beloved Building & Loan during a much more localized lending crisis in the small town where his father had founded the bank when Bailey was a small child.

Bailey in happier times, with wife Mary and daughter Zuzu.

After receiving the news that the Building & Loan would not be allocated any emergency funding from the $700 billion set aside by the Federal government, Mr. Bailey reportedly jumped off of a local bridge into the frigid river below. His lifeless body was discovered some time later, ironically by local sheriff Bert Steward, III whose grandfather, ‘Officer Bert’ Steward (portrayed by Ward Bond in the Capra film) once helped to rescue Bailey from a similar attempt.

“Unfortunately, nobody was there to intervene this time,” Bailey’s daughter Zuzu told reporters through a family spokesman. “This time, the bell will be ringing for daddy.”

Even before the news of Bailey’s death became known, Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson came under heavy fire from all quarters when they announced that there would be no lifeline for the struggling Building & Loan.

“George Bailey was a hero to millions,” an emotional Paulson told reporters upon hearing of the suicide, “And for me, his loss is a particularly personal one. George was also my best imaginary childhood friend. While his presence will be missed, I am comforted by the fact that our friendship will always endure. Of course at a time like this our thoughts and prayers go out to his family and all those who were close to him – especially the ones who are about to lose their homes.”

“Of course I was shocked and saddened to learn the fate of George Bailey,” Bernanke said in a prepared statement, “But it is my duty, even under these most tragic of circumstances, to defend the actions of the Fed. First, I cannot state strongly enough, it was the desire not only of myself but also of everyone involved to find some way to save the Building & Loan. Anyone who has ever met George Bailey would want to help him. That’s not just my opinion, but a fact well documented on film. But the harsh reality of the situation was that the Building & Loan operated in a manner that is no longer viable in today’s culture. As much as I always admired Mr. Bailey, his business practices – by today’s standards – were at best irresponsible, and at worst, criminal. The bank’s records, or more to the point its lack of responsible accounting records is appalling. You just can’t go around making loans based on ‘a handshake’ or ‘the word’ of your friends and neighbors and expect Uncle Sam to bail you out. We’re not anybody’s neighbor and we’re not anybody’s friend — we’re the United States Government.”

Funeral arrangements have not been announced.

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