PROVIDENCE, R.I. -- About 500 depositors rallied outside the Statehouse Sunday to criticize the state's latest payout plan from banks and credit unions closed since Jan. 1.
They also hanged Gov. Bruce Sundlun in effigy from a Statehouse lamppost and attacked the state Investment Commission's week-old decision to invest $87.7 million in acquiring two out-of-state banks and part of a Florida mortgage lender owned by Old Stone Corp.
'It is ironic that our state is using depositors' tax money to rescue federally insured institutions that aren't even in Rhode Island, yet they fail again to rescue their own people,' said Jack Kayrouz, head of the Citizens for Depositors' Rights organization.
The rally was the first since Sundlun's most recent plan to pay more than $84 million to depositors at four closed banks and credit unions. Payouts at five other closed institutions have been postponed until at least Nov. 4.
Protesters said they will support nothing short of full and immediate payments to all depositors.
'The banking crisis, as tragic as it is, has been transcended by a greater and more sinister crisis -- a crisis of government itself,' said depositor William Simeone, an economics professor at Providence College.
'Ten and a half months into this crisis, there is still no solution in sight,' Simeone said.
Earlier rallies drew as many as 2,000 depositors.