Saturday, January 30, 2010
The Feds shut down 5 banks yesterday
And two interesting facts emerged as the dust settled. First we see the emergence of an investment group as owners of a new bank that assumed the assets of one of the failures.
The second interesting fact is
Miami-based Premier American Bank, N.A., a new bank with a national charter set up last week, is buying the deposits and $499.1 million of the assets of Florida Community Bank. The FDIC will retain the remaining assets for later sale. In addition, the FDIC and Premier American Bank — owned by the investment firm Bond Street Holdings — agreed to share losses on $305.4 million of Florida Community Bank's loans and other assets.The new owners have a brand spanking new web site that, so far, only says this about them
Bond Street Investors has been formed to invest in banking franchises, capitalizing on the opportunities afforded today from the dislocation in the financial markets. Investments in healthy banking institutions, cleansed through the FDIC auction process, will provide much needed lending capital, and are poised to grow and prosper.Looks good but the unknown investors want a return. If that return doesn't show when expected you can bet on desperate management grasping for every means legal or not to make that profit. Failing that, they will strip out all the assets they can and kick the corpse back to the Feds.
The second interesting fact is
The two shuttered banks in Georgia followed 25 bank failures there last year, more than in any other state.Georgia seems to have been fertile ground for fast and loose banking. I hope someone is investigating, the people of Georgia from teabaggers to DFHs decerve better.
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