Foreclosure Relief: $1 Million Apiece

 ABOVE: Webster Bank (WBS) executives help themselves to $400 million from the Kash’n’Kari Capital Purchase Program.

Connecticut is hardly unique in being littered with small-cap banks that have variously avoided the worst of the financial sector rout, lied more skillfully about their exposures, or — more likely, in the Nutmeg State — have the Mozilo paradigm in their future as formerly ‘prime’ borrowers now temporarily employed in the New York-Fairfield County financial axis start Googling ‘state unemployment offices.’

So Webster Bank caught lots of local ink Friday for its Nov. 13 announcement of “a 90-day moratorium on home foreclosures for Webster-owned mortgages and the expansion of mortgage assistance programs aimed at keeping families in their homes.”

Michael Sheahan, senior vice president in charge of mortgage lending for Webster, said there are approximately 400 mortgages — worth $40 million to $60 million — that could qualify for the moratorium. “Roughly one-third or less are in some form of foreclosure,” he said. 

 Very kind. But for the fact that Webster has been allowed to heist $400 million from Treasury’s Capital Purchase Program for, among other things, pursuing “opportunities for growth, including acquisition of like-minded partners that share Webster’s vision to be New England’s bank.” 

Nice work, if you can get it. Whicy you can, while paying out that spivvy divvy.

Webster to suspend foreclosures 
by Angela Carter
The New Haven Register Nov. 14 2008

Webster Suspends Home Foreclosures
Webster Financial Corp. press release Nov 13. 2008 

Webster to Participate in Treasury Department's Capital Purchase Program
Webster Financial Corp. press release Nov 7 2008

Comments

[kurt walter:]

No bailouts. Just foreclose and start the real estate auctions.

2008 Nov 18 01:44 PM

[suey5619:]

From a former employee of this New England institution - and a former Loan Officer - Webster is great at covering the mess - but I agree with the auhor that to take $400Mil of the TARP funds but to also say they have not "participated in Sub Prime lending" is somewhat of an oxymoronic statement - they aggressively pursued Equity lending through the branches - with low teaser rates - did 3rd position lending- which is very risky - I, personnaly, had 3 different managers in my short 2 year employment with this bank - which leads me to beleive that the Mortage Banking Group is in much bigger trouble then they wanted to let on -Jim Smith can really learn something from Jamie Dimon at JP Morgan on how to lead a 1st rate financial institution - as my mother always said - if "walks like a duck" -
I may sound like a bitter former employee - well I guess I am. on some levels.....

2008 Dec 18 12:59 PM

[User 117558:]

You are quite right. This bank has been run into the ground by Smith and his hand picked cronies. There should be a public outrage and he should do the right thing and resign from all of his officer and directorate positions. He has run this bank into the ground. Compare what he has done with the properly conservative approach of Peyton Patterson at New Alliance. I own both stocks and regret that I did not sell all of my WBS and limit my holdings to NAL. What a disgraceful management team.


On Dec 18 12:59 PM suey5619 wrote:

> From a former employee of this New England institution - and a former
> Loan Officer - Webster is great at covering the mess - but I agree
> with the auhor that to take $400Mil of the TARP funds but to also
> say they have not "participated in Sub Prime lending" is somewhat
> of an oxymoronic statement - they aggressively pursued Equity lending
> through the branches - with low teaser rates - did 3rd position lending-
> which is very risky - I, personnaly, had 3 different managers in
> my short 2 year employment with this bank - which leads me to beleive
> that the Mortage Banking Group is in much bigger trouble then they
> wanted to let on -Jim Smith can really learn something from Jamie
> Dimon at JP Morgan on how to lead a 1st rate financial institution
> - as my mother always said - if "walks like a duck" -
> I may sound like a bitter former employee - well I guess I am. on
> some levels.....

Feb 21 10:01 AM