Hedrick said those are circumstances that bureaucrats and out-of-town bankers don't understand.
Hedrick's own story began a year earlier when her husband, Gary Hunt, was killed in an accident on the winding East Fork Road north of Hailey.
"He took care of the financials and I did what I loved most, which was meeting with the customers, organizing events and reading to the kids," she said. "I don't know if I ever sat behind his desk unless it was to nurse our baby."
In organizing the store's financials she learned that Iconoclast owed hundreds of thousands of dollars to First Bank of Idaho and to publishing companies.
Hedrick called First Bank President Brian Furlong, who gave her more time to pay.
"I could do that with our local bank," Hedrick said. "I could plead my case to the people who made the decisions, and they knew it was in their best interest that my business survive to pay off the loan."
Federal regulators say that personal touch is precisely why First Bank failed.
"Banks fail if people don't pay back those loans," said Barr, the FDICspokesman. "That's what happened to First Bank, and that's why we had to step in to protect depositors."
However, some First Bank of Idaho officers say they suspect other motives. First Bank was a lucrative business that went to the highest bidder -- U.S. Bancorp, which received a $6.6 billion federal bailout.
In buying First Bank with government help, U.S. gained a coveted asset:First Bank's branch in Jackson Hole, Wyo. That state limits bank branches so a financial institutions must acquire an existing bank to do business there, and FirstBank had no intention of selling the branch.
U.S. also gained more than $488 million in First Bank deposits, according to the FDIC, but didn't have to assume what no other institution wanted at any cost: Business loans.
"U.S. Bank got a pretty sweet deal, but as far as Iknow, none of the loans were sold. That means Wall Street will be reaping the benefits," Schauer said. "The FDIC will sell those loans to buyers for only a few cents on the dollar. Far less than what they are really worth."
Barr would not comment on the agreement between U.S. Bank and the FDIC.
On June 15, at the behest of Ketchum officials, Idaho Department of Finance officials began encouraging local banks to increase lending to small business owners. However, the agency admits it cannot pressure banks into lending.
"Several banks in the area responded immediately," said Gavin Gee, director of the Idaho Department of Finance. "They have reported sending additional Small Business Administration loan officers to work with local business owners."
But Hedrick said she has been denied by every bank in Ketchum. FDIC gave her a June 20 deadline to find another lender, but that date has come and gone. She said she doesn't know what or when something will happen to her business.
"I hold my breath every morning when I come here, hoping there won't be a government lock on the door,"she said, after giving a group of second-grade students a tour of the bookstore. "I only hope that the FDIC doesn't want to be in the business of selling books."
Joshua Palmer may be reached at 208-735-3231 or at jpalmer@magicvalley.com
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