Tag Archives: 2010

2010 Christmas Mass Homily — Pope Benedict XVI

 

Pope Benedict XVI Blessing of the Host

Dear Brothers and Sisters! “You are my son, this day I have begotten you” with this passage from Psalm 2 the Church begins the liturgy of this holy night. She knows that this passage originally formed part of the coronation rite of the kings of Israel.

The king, who in himself is a man like others, becomes the “Son of God” through being called and installed in his office. It is a kind of adoption by God, a decisive act by which he grants a new existence to this man, drawing him into his own being.

The reading from the prophet Isaiah that we have just heard presents the same process even more clearly in a situation of hardship and danger for Israel: “To us a child is born, to us a son is given. The government will be upon his shoulder” (Is 9:6).

Installation in the office of king is like a second birth. As one newly born through God’s personal choice, as a child born of God, the king embodies hope. On his shoulders the future rests. He is the bearer of the promise of peace.

On that night in Bethlehem this prophetic saying came true in a way that would still have been unimaginable at the time of Isaiah. Yes indeed, now it really is a child on whose shoulders government is laid. In him the new kingship appears that God establishes in the world. This child is truly born of God.

It is God’s eternal Word that unites humanity with divinity. To this child belong those titles of honor which Isaiah’s coronation song attributes to him: Wonderful Counselor, Mighty God, Everlasting Father, Prince of Peace (Is 9:6). Yes, this king does not need counselors drawn from the wise of this world. He bears in himself God’s wisdom and God’s counsel.

In the weakness of infancy, he is the mighty God and he shows us God’s own might in contrast to the self-asserting powers of this world. Truly, the words of Israel’s coronation rite were only ever rites of hope which looked ahead to a distant future that God would bestow. None of the kings who were greeted in this way lived up to the sublime content of these words.

In all of them, those words about divine sonship, about installation into the heritage of the peoples, about making the ends of the earth their possession (Ps 2:8) were only pointers towards what was to come as it were signposts of hope indicating a future that at that moment was still beyond comprehension.

Thus the fulfillment of the prophecy, which began that night in Bethlehem, is both infinitely greater and in worldly terms smaller than the prophecy itself might lead one to imagine. It is greater in the sense that this child is truly the Son of God, truly “God from God, light from light, begotten not made, of one being with the Father.”

The infinite distance between God and man is overcome. God has not only bent down, as we read in the Psalms; he has truly “come down,” he has come into the world, he has become one of us, in order to draw all of us to himself. This child is truly Emmanuel God-with-us. His kingdom truly stretches to the ends of the earth.

He has truly built islands of peace in the world-encompassing breadth of the holy Eucharist. Wherever it is celebrated, an island of peace arises, of God’s own peace. This child has ignited the light of goodness in men and has given them strength to overcome the tyranny of might.

This child builds his kingdom in every generation from within, from the heart. But at the same time it is true that the “rod of his oppressor” is not yet broken, the boots of warriors continue to tramp and the “garment rolled in blood” (Is 9:4f) still remains. So part of this night is simply joy at God’s closeness.

We are grateful that God gives himself into our hands as a child, begging as it were for our love, implanting his peace in our hearts. But this joy is also a prayer: Lord, make your promise come fully true. Break the rods of the oppressors. Burn the tramping boots.

Let the time of the garments rolled in blood come to an end. Fulfill the prophecy that “of peace there will be no end” (Is 9:7). We thank you for your goodness, but we also ask you to show forth your power. Establish the dominion of your truth and your love in the world the “kingdom of righteousness, love and peace.”

“Mary gave birth to her first-born son” (Lk 2:7). In this sentence Saint Luke recounts quite soberly the great event to which the prophecies from Israel’s history had pointed. Luke calls the child the “first-born.” In the language which developed within the sacred Scripture of the Old Covenant, “first-born” does not mean the first of a series of children.

The word “first-born” is a title of honor, quite independently of whether other brothers and sisters follow or not. So Israel is designated by God in the Book of Exodus (4:22) as “my first-born Son,” and this expresses Israel’s election, its singular dignity, the particular love of God the Father.

The early Church knew that in Jesus this saying had acquired a new depth, that the promises made to Israel were summed up in him. Thus the Letter to the Hebrews calls Jesus “the first-born,” simply in order to designate him as the Son sent into the world by God (cf. 1:5-7) after the ground had been prepared by Old Testament prophecy.

The first-born belongs to God in a special way and therefore he had to be handed over to God in a special way as in many religions and he had to be ransomed through a vicarious sacrifice, as Saint Luke recounts in the episode of the Presentation in the Temple. The first-born belongs to God in a special way, and is as it were destined for sacrifice.

In Jesus’ sacrifice on the Cross this destiny of the first-born is fulfilled in a unique way. In his person he brings humanity before God and unites man with God in such a way that God becomes all in all. Saint Paul amplified and deepened the idea of Jesus as firstborn in the Letters to the Colossians and to the Ephesians: Jesus, we read in these letters, is the first-born of all creation the true prototype of man, according to which God formed the human creature.

Man can be the image of God because Jesus is both God and man, the true image of God and of man. Furthermore, as these letters tell us, he is the first-born from the dead. In the resurrection he has broken down the wall of death for all of us. He has opened up to man the dimension of eternal life in fellowship with God.

Finally, it is said to us that he is the first-born of many brothers. Yes indeed, now he really is the first of a series of brothers and sisters: the first, that is, who opens up for us the possibility of communing with God. He creates true brotherhood not the kind defiled by sin as in the case of Cain and Abel, or Romulus and Remus, but the new brotherhood in which we are God’s own family.

This new family of God begins at the moment when Mary wraps her first-born in swaddling clothes and lays him in a manger. Let us pray to him: Lord Jesus, who wanted to be born as the first of many brothers and sisters, grant us the grace of true brotherhood.

Help us to become like you. Help us to recognize your face in others who need our assistance, in those who are suffering or forsaken, in all people, and help us to live together with you as brothers and sisters, so as to become one family, your family. At the end of the Christmas Gospel, we are told that a great heavenly host of angels praised God and said: “Glory to God in the highest and on earth peace among men with whom he is pleased!” (Lk 2:14).

The Church has extended this song of praise, which the angels sang in response to the event of the holy night, into a hymn of joy at God’s glory “we praise you for your glory.” We praise you for the beauty, for the greatness, for the goodness of God, which becomes visible to us this night. The appearing of beauty, of the beautiful, makes us happy without our having to ask what use it can serve.

God’s glory, from which all beauty derives, causes us to break out in astonishment and joy. Anyone who catches a glimpse of God experiences joy, and on this night we see something of his light. But the angels’ message on that holy night also spoke of men: “Peace among men with whom he is pleased.” The Latin translation of the angels’ song that we use in the liturgy, taken from Saint Jerome, is slightly different: “peace to men of good will.”

The expression “men of good will” has become an important part of the Church’s vocabulary in recent decades. But which is the correct translation? We must read both texts together; only in this way do we truly understand the angels’ song. It would be a false interpretation to see this exclusively as the action of God, as if he had not called man to a free response of love.

But it would be equally mistaken to adopt a moralizing interpretation as if man were so to speak able to redeem himself by his good will. Both elements belong together: grace and freedom, God’s prior love for us, without which we could not love him, and the response that he awaits from us, the response that he asks for so palpably through the birth of his son.

We cannot divide up into independent entities the interplay of grace and freedom, or the interplay of call and response. The two are inseparably woven together. So this part of the angels’ message is both promise and call at the same time. God has anticipated us with the gift of his Son.

God anticipates us again and again in unexpected ways. He does not cease to search for us, to raise us up as often as we might need. He does not abandon the lost sheep in the wilderness into which it had strayed. God does not allow himself to be confounded by our sin.

Again and again he begins afresh with us. But he is still waiting for us to join him in love. He loves us, so that we too may become people who love, so that there may be peace on earth. Saint Luke does not say that the angels sang. He states quite soberly: the heavenly host praised God and said: “Glory to God in the highest” (Lk 2:13f.).

But men have always known that the speech of angels is different from human speech, and that above all on this night of joyful proclamation it was in song that they extolled God’s heavenly glory. So this angelic song has been recognized from the earliest days as music proceeding from God, indeed, as an invitation to join in the singing with hearts filled with joy at the fact that we are loved by God. Cantare amantis est, says Saint Augustine: singing belongs to one who loves.

Thus, down the centuries, the angels’ song has again and again become a song of love and joy, a song of those who love. At this hour, full of thankfulness, we join in the singing of all the centuries, singing that unites heaven and earth, angels and men. Yes, indeed, we praise you for your glory. We praise you for your love. Grant that we may join with you in love more and more and thus become people of peace. Amen.

___

Copyright Vatican Publishing House

The Satanic Bumblebee — Conrad Black on the Church and her enemies…

Catholicism, and the Oceans, Will Survive

2010 was a year of turmoil, and of triumph.

 

By Conrad Black — National Review Online

The year now ending has been one of immense alarm followed by serenity’s sudden rushes to the head. It is hard now to remember the hysteria generated by the tawdry and often appalling scandal of clerical abuse of young men in the Roman Catholic Church, between February and July. The New York Times appeared to be offering free visits to New York with city tours of all boroughs, capped by five-course dinners in five-star restaurants, for anyone who could recall an indiscreet clerical hand on the knee from decades before. I repeat it is a grievous problem and there were many disgusting and shameful incidents, compounded by excessive episcopal indulgence in many cases. These facts do not alter or diminish the fidelity, dedication, and self-discipline of the 99 percent of Roman Catholic religious personnel who have served through living memory throughout the world with unblemished devotion, nor blight the education and care they gave to an approximately equal percentage of the scores of millions of children confided to them.

All bad news for the Roman Catholic Church brings that Church’s enemies swarming out like hornets whose nest has just been squirted with a garden hose. To the litigators, the editorial mudslingers, the deep, thick, serried ranks of militant skepticism, Rome is a Satanic bumblebee which infests the brave, aging secular world of utilitarian progress and the methodical human march toward a plenitude of knowledge. Earlier this year, they thought they saw the end, at last, of Rome’s ghastly, tenebrous, saturnine magisterium that defies all laws of nature and reason by not simply crashing to the ground as the endlessly proclaimed laws of rational aerodynamics require. They were, as always, mistaken.

The long-promised ecclesiastical fall of Rome was to be celebrated, like a spectacular crash at the great Farnborough Air Show, by the fiasco of Pope Benedict’s madly insouciant visit to Godless Britain to beatify the already Venerable Doctor John Henry Cardinal Newman in September. The allegedly dogmatic pope supposedly combined all the dislikes of the British caricaturist, commentator, and pub bore: Germanic, authoritarian, sophistical, pompous, superstitious, and curial. In the first half of 2010, the pope was reviled as complicit in the crime of hiding the molestations, and even as an ex-Nazi and a ruthless dogmatist. In his British visit, though, Benedict was seen as intellectually courageous, the quietly spoken wise man. He was apologetic for the Church’s failings, solicitous of its victims, indomitable in the championship of Christian faith, and reverently admiring of Newman, a quintessential Englishman and one of the intellectual giants and greatest English prose stylists of the 19th century. The pope did not put a Prada-clad foot wrong. Leftist pundits who had predicted huge outpourings of hostility were completely silenced, as the pope came and went in an ambiance of reciprocated good will in which all, including Queen Elizabeth, the prime minister, and the archbishop of Canterbury joined.

Benedict was finally recognized as a Nazi resister whose cousin was liquidated because of a mental defect, and who deserted the German Army; and as a great scholar devoted to the reconciliation of faith and reason, who has been decisive and effective and unsung in combating child abuse in the Church for 30 years and had largely eliminated it before it was fanned into a conflagration this year. It was like Edward VII’s visit to Paris in 1903, when he arrived to shouts of “perfidious Albion” and left a week later to choruses of “Long live the King!” Benedict appealed to the strong British appreciation of the underdog, the undemonstrative man of principle. As the year ends, these qualities are again demonstrated by the pope’s refusal to tolerate the ordination of bishops by China’s puppet Catholic Patriotic Association, the People’s Republic’s enactment of Napoleon’s famous dictum that “the people must have their religion and the state must control it.” China antedates the Roman Catholic Church, but Communist China does not, and this usurpation, like all its precedents in church history, will be a complete failure.

By the time of the pope’s British trip, the swords of the worldwide Catholic-baiters had already been blunted by the sudden surge of alarm over the Gulf of Mexico oil spill. For several months, War of the Worlds horrors of the destruction of the world’s oceans, the end of the shrimp industry, the irreversible sliming of the entire Gulf and Atlantic coastlines of America, had shouldered and bullied into the back of the public mind the cherished prospect of the exposure of the Roman Church as a racket of pedophiles and predatory Sodomites. Of course, the oil spill was a terribly serious problem too. But in the one case as in the other, there was a determined effort, halting at first, hampered by bumbling and by an urge to downplay and deny, but soon indomitably determined and focused, to address the causes of the problem and stop it, and then to put things right as much and as quickly as possible and prevent repetition. It is not obvious why the swift and dramatic progress in both crises came as such a surprise, and to many, even apparently, as a disappointment.

In the most imperfect days of the Church’s very human history as the custodian of the Christian message and mission, it plumbed much greater depths of depravity than these. The modern media seem to believe it can make or break anything, sacred or profane. The irrational hysteria over the oil spill must have contained a backlash from the rout of the Global Warming Terror. The mad Copenhagen Conference proposal to commit the advanced world to $100 billion in annual Danegeld to the world’s 77 designated poor countries — including the chief carbon-emissions-footprint offender of them all, China — was finally dismissed as nonsense, as was much of the “settled science” Al Gore had invoked to make himself a green centimillionaire and a Nobel laureate.

The Church’s enemies forgot that it does not have adherents because of its personnel, but because it is an ark of faith. The atheists, though often articulate and courageous and knowledgeable, and heavy-laden with the ammunition provided by the fatuity and hypocrisy of much Christian history, can never deal with the insuperable evidence of spiritual forces, miracles, and any ecclesiastical concept of grace. Nor can they surmount the challenge of man’s inability to grasp the infinite, the absence of an end and beginning of space or time. In these vast areas, notions of the supernatural and the deity will always circulate, no matter how great dissent may be. And no one, and certainly not a rag-tag of sacerdotal perverts, will displace Rome from its 2,000-year primacy in this sphere. Even more fundamentally, the ecology of the world has survived paroxysms of destruction such as World War II, when endless oil spillages and pollutions of the air and water were inflicted on the world for over five years. The world and its institutions are racked by the consequences of human failings, but they have what life and its primary modes of organization must have to go on. This is the trite but salutary lesson of 2010, and isn’t a bad Christmas message.

CCHD: How to shoot yourself in the foot

EDITOR NOTE: Enough games… Catholics should not be expected to finance this political drama queen any longer.

WASHINGTON, D.C. — The Reform CCHD Now (RCN) coalition (www.reformcchdnow.com) has released a report detailing multiple problems with the Coalition of Imokalee Workers (CIW), the first grantee featured in a document intended to outline the review and renewal of the controversial Catholic Campaign for Human Development (CCHD).

“The very idea that the CCHD would praise CIW in a document that apologizes for funding pro-abortion, pro-homosexual organizations in the past and promises to make a stronger effort to avoid doing so in the future undermines their credibility,” said Michael Hichborn, lead researcher for RCN member American Life League.  “If CCHD can’t get it right at the beginning of this process, what confidence can we have that it will be able to do so later on.”

RCN’s report outlines in specific detail how CIW participated in the US Social Forum 2010; something the RCN reported on back in June.  The US Social Forum ran a collection of workshops, many of which were devoted to abortion rights, homosexual rights, and Marxist Socialism.  RCN’s report also specifies three of CIW’s coalition and network partnerships that are in and of themselves pro-abortion and pro-homosexual, and whose mission is to encourage cross-issues advocacy of their members. The report can be found on the Reform CCHD Now web site at http://reformcchdnow.com/report_11_4_10_renewal.pdf.

“The CIW’s participation with these groups directly violates the CCHD Renewal documents restriction on participating in coalitions which have positions or actions which contradict fundamental Catholic moral and social teaching.” said Rob Gasper, founder of RCN member Bellarmine Veritas Ministry. “The CCHD’s lack of oversight even in its renewal document underscores our concern and call for a delay in the national collection until the 2010 grants list is released.”

RCN renewed its call for complete transparency in CCHD’s grants process, and a delay of the collection until the new grants list is released.

READ MORE AND DECIDE:

USCCB “Review and Renewal of the Catholic Campaign for Human Development” betrays utter lack of reform

Liberal priests oppose CCHD reform efforts in Chicago (Exclusive)

 CCHD critics raise new questions on grants to radical groups

 CCHD Coalition Finds Radical Group Featured in Bishop’s Renewal Document; Urges Delay of Annual Collection

END OF POST

Same as it ever was? — USCCB “Review and Renewal of the Catholic Campaign for Human Development” betrays utter lack of reform

I’ve downloaded and read the CCHD “Review and Renewal of the Catholic Campaign for Human Development as Accepted and Affirmed by the USCCB Administrative Committee,” – promulgated on September 15, 2010 – and can only cry in absolute frustration, that nothing has changed. The new, improved CCHD is still all about funding Alinskyian organizing (organizing based on the organizational theories of the late, great Saul Alinsky)….which is still all about progressive politics…which is still all about killing babies.

Yes, CCHD grants will go to progressive organizations that are also concerned with decriminalizing undocumented immigrants, socializing medicine, and nationalizing public education, as it always has, but those are issues good men and women can disagree about. Good organizations, on the other hand, don’t support politicians and policies that kill babies. Since CCHD continues to fund organizations that support pro-abortion politicians and policies, nothing has changed.

There has been no reform of CCHD.

There has been no renewal of CCHD.

CCHD has intractably set its course. It was founded to fund Alinskyian organizing and it will, if this document of “review and renewal” is any indication, go down funding Alinskyian organizing.

The document’s Introduction, for instance, after a whole lot of pious rhetoric, lists 4 examples of “CCHD’s remarkable work.” Two of those examples are Alinskyian organizations: Communities Organized for Public Service (COPS), an affiliate of Saul Alinsky’s Industrial Areas Foundation network, and the Federation of Congregations United to Serve (FOCUS), an affiliate of PICO, a network founded in the IAF-style by an IAF-trained organizer. This is “CCHD’s remarkable work.”

Pro-life groups around the US, under the banner of Reform CCHD Now, have demonstrated that dozens of CCHD grantees have been directly engaged in activities that violate Church teachings. According to “Review and Renewal,” CCHD has withdrawn funding from only five of them. If this is the best CCHD can manage, despite overwhelming evidence against the others, CCHD assurances that it will be putting into place “stronger policies and clearer mechanisms to screen and monitor grants and groups” is very un-reassuring.

And while it has verbally distanced itself from groups that are also indirectly engaged in activities that violate Church teachings, the money pours from Catholics, who think their donations are “for the poor,” straight into progressive coffers. So while CCHD states it “will not fund groups that are members of coalitions which have as part of their organizational purpose or coalition agenda, positions or actions that contradict fundamental Catholic moral and social teaching,” it continues to fund the Alinskyian organizing networks and their affiliates. The two “model” grantees give us a very nice picture of how this plays.

Democrat pro-choice politician Henry Cisneros of San Antonio owed his successful mayoral bid directly to the IAF. “IAF’s most successful projects have been based in Texas, where Communities Organized for Public Service (COPS) in San Antonio helped elect Henry Cisneros as the city’s first Hispanic mayor.” [David Walls, “Power to the People: Thirty-five Years of Community Organizing,” The Workbook, summer 1994. Cisneros served as mayor of San Antonio from 1981 to 1987.]

As for the Federation of Congregations United to Serve, it recently became a partner with Public Allies Central Florida. Public Allies, whose founding advisory board included President Obama and whose Chicago chapter was run by Michelle Obama from 1993-1996, was one of the original AmeriCorps programs. Its mission is to “advance new leadership” and, in that capacity frequently has “partnered” with Planned Parenthood (e.g. Milwaukee and Pittsburgh). In fact, Public Allies’ national head of finance and administration is Tim Hosch, previously the Controller at Planned Parenthood of Wisconsin. What an interesting partner for a CCHD-funded organization.

Guilt by association? You betcha. These associations marry Alinskyian community organizations to the progressive policies and persons of the Democrat Party – and Alinskyian community organizations are the groups that receive the bulk of CCHD grants.

With that in mind, consider CCHD’s new “commitments,” detailed in “Review and Renewal.” Many of them involve plastering statements of intention here and there (“Add introductory statement on CCHD mission foundations and identity on all forms, applications, materials,” “Revise CCHD Grant Agreement to more clearly state prohibited activities,” “…add more specific language to the CCHD Grant Agreement,” “…revise and refine the CCHD Grant Agreement for greater clarity”) that will mean absolutely NOTHING unless there is a fundamental restructuring of the collection.

Similarly, creating “a new position to focus on promoting, safeguarding and monitoring the Catholic identity of CCHD and compliance with CCHD requirements” will accomplish NOTHING if the person who fills that position thinks – as CCHD has argued for 40 years – that Alinskyian community organizing and its political shenanigans are perfectly compliant with CCHD requirements.

It’s all doublespeak unless there’s a change of direction – a metanoia – a conversion. Doing what CCHD has always done will produce what CCHD has always produced.

Stop trying to “Share the Good News of CCHD” (could “Review and Renewal” have crafted a more offensive statement?) and start sharing the good news of Jesus. Stop trying to “empower the poor” and help them, instead. Stop worrying about the bad PR (“CCHD will develop more timely, consistent and effective ways to monitor and respond to coverage of CCHD in both new and traditional media”) and worry instead about bad programs. For heaven’s sake, don’t try to persuade us that “enlarge[ing] the range of grant amounts ($25,000 – $75,000)” to organizations whose progressive fellowships – that’s “dead babies” when you come out of the bureaucratic and into the real world – is positive.

Way toward the end of “Review and Renewal,” there’s a little item that “CCHD will seek appropriate ways to integrate its activities to protect the life and dignity of those who are poor or suffering from economic injustice into the broader USCCB “life and dignity” priority…The connection between family (broken families, absent fathers, domestic violence, unwed pregnancies, etc.) and economic (joblessness, low wages, discrimination, globalization, etc.) aspects of poverty should be an area of continuing focus for CCHD.” It’s the best part of this sorry 15-page document.

However, one would like to know why, in the one spot in the US where this very connection was attempted – the Archdiocese of Chicago – the CCHD director was “let go.”

For 40 years, the Catholic bishops and the Catholic community in the United States have been duped. They have been unwitting partners in a serious and sustained commitment to manipulate low-income people and poor communities into supporting a progressive agenda that has included dead babies. That isn’t how we serve the poor – and it doesn’t make their lives better.

But it does insure that the reviewed and renewed CCHD is pretty much the same creature as it’s always been.

Stephanie Block is a member of the Catholic Media Coalition and the editor of the New Mexico-based Los Pequenos newspaper.

Info: http://www.usccb.org/cchd/

O-Bum-A-Con-No-Me: Our local bank goes under…

The writings on the wall:
 
‘Relationships built on self-interest’ (i.e. Free Market Capitalism), must go.
 
And they are…

 My ‘Power Analysis’: This Democrat controlled Congress must go in 2010, followed by the president in 2012.

Well, maybe not so lasting...

The closing lines of the FDIC press release says it all–

Home Valley Bank is the 103rd FDIC-insured institution to fail in the nation this year, and the second in Oregon.

Here’s the press release in full:

South Valley Bank & Trust, Klamath Falls, Oregon, Assumes All of the Deposits of Home Valley Bank, Cave Junction, Oregon

FOR IMMEDIATE RELEASE
July 23, 2010
Media Contact:
David Barr
Office Phone: (202) 898-6992
Cell Phone: (703) 622-4790
Email: dbarr@fdic.gov

 

Home Valley Bank, Cave Junction, Oregon, was closed today by the Oregon Department of Consumer and Business Services, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with South Valley Bank & Trust, Klamath Falls, Oregon, to assume all of the deposits of Home Valley Bank.

The five branches of Home Valley Bank will reopen on Monday as branches of South Valley Bank & Trust. Depositors of Home Valley Bank will automatically become depositors of South Valley Bank & Trust. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship in order to retain their deposit insurance coverage. Customers of Home Valley Bank should continue to use their existing branch until they receive notice from South Valley Bank & Trust that it has completed systems changes to allow other South Valley Bank & Trust branches to process their accounts as well.

This evening and over the weekend, depositors of Home Valley Bank can access their money by writing checks or using ATM or debit cards. Checks drawn on the bank will continue to be processed. Loan customers should continue to make their payments as usual.

As of March 31, 2010, Home Valley Bank had approximately $251.80 million in total assets and $229.6 million in total deposits. South Valley Bank & Trust will pay the FDIC a premium of 1.05 percent to assume all of the deposits of Home Valley Bank. In addition to assuming all of the deposits of the failed bank, South Valley Bank & Trust agreed to purchase essentially all of the assets.

The FDIC and South Valley Bank & Trust entered into a loss-share transaction on $211.6 million of Home Valley Bank’s assets. South Valley Bank & Trust will share in the losses on the asset pools covered under the loss-share agreement. The loss-share transaction is projected to maximize returns on the assets covered by keeping them in the private sector. The transaction also is expected to minimize disruptions for loan customers. For more information on loss share, please visit: http://www.fdic.gov/bank/individual/failed/lossshare/index.html.

Customers who have questions about today’s transaction can call the FDIC toll-free at 1-800-528-4893. The phone number will be operational this evening until 9:00 p.m., Pacific Daylight Time (PDT); on Saturday from 9:00 a.m. to 6:00 p.m., PDT; on Sunday from noon to 6:00 p.m., PDT; and thereafter from 8:00 a.m. to 8:00 p.m., PDT. Interested parties also can visit the FDIC’s Web site at http://www.fdic.gov/bank/individual/failed/homevalleyor.html.

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $37.1 million. Compared to other alternatives, South Valley Bank & Trust’s acquisition was the least costly resolution for the FDIC’s DIF. Home Valley Bank is the 103rd FDIC-insured institution to fail in the nation this year, and the second in Oregon. The last FDIC-insured institution closed in the state was Columbia River Bank, The Dalles, on January 22, 2010.

# # #

Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation’s banking system. The FDIC insures deposits at the nation’s 7,932 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars – insured financial institutions fund its operations.

FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically (go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC’s Public Information Center (877-275-3342 or 703-562-2200). PR-169-2010

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