"Five years ago, Barnes Bank was one of the best banks in the country. It had a great franchise. But somewhere in the last five years, the board of directors started making very risky decisions," said Stephan Peers, an investment banker and Barnes family member who joined the eight-member board in September.

Judy Jenson doesn't know why the bank died or who is responsible, but the 62-year-old widow feels suddenly vulnerable. The financial cushion bequeathed to her by her late husband is gone.

"All I know is the bank has squandered my inheritance, which waswhat I considered to be my future security and get me over the rough  edges of retirement," she said.

"The economy is an easy out," wrote blogger Greg Christensen, whosegreat-great-great grandfather, John Barnes, founded the bank in 1891.

"I believe it was mismanagement, exuberance, nepotism and opaquecommunications from the board of directors. Our family lost a lot of money. But the wrenching part is feeling we lost a legacy."

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