Undercapitalized Banks Fall To Lowest Level In 17 Quarters [View instapost]
The states with the most real estate problems have been the ones who have failed the most. I have written about mergers and acquisitions, but the most interesting is the change of branches where major banks want to get out of areas with low deposits from customers, as well as the growth of regional and major banks as viewed by their branch acquisition and growth. Remember, deposits is the name of the game in banking.
Arizona Real Estate Failures Take Bank Down---Board Of Directors At Fault [View instapost]
Having been involved in the founding of two community banks, on the board of one, advisor on two others, being on committees, going through the banker courses, you realize how tough a job it is, especially if you take the responsibility seriously.
I don't know any other media that goes into the depth I do from free information made available by the FDIC---what a wealth of information!
Their reports and financial information tell a great deal of the story and what a wonderful job they do.
Arizona Real Estate Failures Take Bank Down---Board Of Directors At Fault [View instapost]
It is a false assumption to compare your personal life with a business, let alone a bank. A bank can leverage itself greatly, which is their business, taking in deposits, leveraging it into products from giving advice, to check charges, to all types of loans and leases from credit cards to mortgages (most are through Fannie Mae, by the way) with the bank as underwriter. Note the deposits not owned by the bank but then lent out.
The problem is the board was interested in real estate primarily and blinded by that business. It would be like dentists only making loans to other dentists for whatever the dentist wanted to do...all your eggs into one business. If you have 60% of your loans to one industry, you are in trouble (period). It you have an accounts receivable to 60% and that business is slow in payment, or defaults, you are bound to go out of business quickly.
There are many sound community banks, profitable, and written about here. The chairman and the board take ultimate responsibility as that is their role---staff follows their direction and leadership. If they don't, they are replaced.
If you have the time, go to this blog and look at the top 100 and top 500 community banks and why they are successful. Banking is a very competitive, tough business, and takes a board that represents all parts of the community, not just one interest---which happened here---and that is the point of the story.
Arizona Real Estate Failures Take Bank Down---Board Of Directors At Fault [View instapost]
When you have one group who is interested in one aspect of business, real estate, their vent is real estate, buy more, lend more, take a risk on real estate, and they promoted their friends in real estate, give them very liberal loans, and yes, they brought business to the bank---but all in real estate. Very lopsided portfolio, and then expanding into another town---just to make more real estate loans and no diversification and hell bent in one direction. And their timing was awfull!!!
Small Business Lending Down In 2012,but Big Banks Continue To Lead The Market [View instapost]
I am not on top of the finance industry out of the United States, and really am not on top of Canada, where I see Element Financial building too fast to be true, but really don't know. I watch how charismatic personalities such as Gordon Gecko in the movie "Wall Street" lead investors in seeing the emperor wearing clothing.
This report has many facets and is not simple to read.
The charts in the article show an increase in large loans, meaning more money is being lent, and by the larger banks, who are in this marketplace, where the regional and community banks are not. The profits to the banks are up compared to three years ago.
The charts do not show the size of the loans, meaning the loans under $100,000 for business are quite less, as are the $250,000 and many of these are not just the size, but perhaps safety in the margin that the bank charges. This "small ticket" marketplace (considered by banks as under $250,000) is more for the "C" and "D" or as you know, the new businesses, the companies that are "B" but require a larger loan or lease than they would qualify for in the major banks, who are financing other financial institutions who take this type of transaction.
This financing is also in their loan portfolio, and while the profits and dollars are higher, the actual individual loans are down as they are being taken by others, many who the banks finance and are counted in the large loans.
So they are lending more, but not directly...
The reality is there are more payday loans, cash advance, high rate business loans, subprime lenders doing extremely well here in the United States, meeting the demand. If you can increase your profit, improve your cashflow, the rate is not as important as having access to improving your business with more advertising, more product, more inventory, better service, and improving your margins.
The small loan and lease marketplace is seeing more business with non-bank enterprises.
If the banks were lending more, these companies would not be growing as much as they are, as well as being well received by their customers!
So large loans are up,and also are feeding indirectly the small loans who get a great return for the risk. The same may be true in UK and other countries and to put this all in a two page report really does not give you a full analysis.
Not meaning to talk out of the other side of my mouth, I find the report very interesting, informative, and in a short space, very good reporting. I wish more people in the industry would read it and think about it, as you have.
Securities Are Outpacing Loans At US Banks And Thrifts [View instapost]
Thank you. I usually stay away from opinions and try to be more objective, but I think, under the circumstances, Geithner and Bernanke have done an excellent job. Our real enemy during all this time has been "inflation." As unemployment drops, whether interest raises or not, inflation is a real enemy to prosperity for all.
Kathleen Otto Found Liable for $114.5 Million Ponzi Scheme [View instapost]
John Otto, the alleged perpetrator of the Ponzi scheme, where money was lent by investors for a rate of return for leases that did not exist, committed suicide. Corporate officers were taken to a class action suit in Fresno where a jury ruled for a judgment against Heritage Leasing, MAC dba Heritage Leasing, Kathleen Otto (wife of John where bookkeeping was maintained at their house in Palm Desert (and Air Fred (small airline where they leased planes) for $114.5 million, plus $46.5 million against both Dan Ramirez and Andy Fernandez; $720,000 on top of that against Dan Ramirez.
Ara Jabagchourian and Aron K. Liang of Cotchett, Pitre & McCarthy, LLP and Donald Fischbach of Dowling, Aaron & Keeler, Inc. began search for the assets (which were few, it appears, as the money had been spent by Otto to keep the Ponzi scheme going).
The FBI has no one to indict, and in reality, Kathleen Otto was only brought into the action in the class action suite for basically being an officer of the corporation. She has filed personal bankruptcy as well as Dan Ramirez. Both basically have nothing, although transfers of real estate and a vehicle before the bankruptcy are being brought up before the judge.
In the meantime “http://bit.ly/XUDWTN blog” started May 14, 2009 has 1098 emails, with victims trying to prove the loss to the IRS to take tax deductions on their losses (many have lost everything, homes, retirement, money saved for kids college education, you name it).
Attorney Ara Jabagchourian is a native of Fresno, and works for Cotchett, Pitre & McCarthy firm that allows him to spend this time as this case the attorneys get 23 1/2% of what is recovered, and doesn't look like too much at all.
I get raves over USB from many people---must be true.
Banks are borrowing at a very low rate, but making less on loans, except for credit cards and other products, so turning to fees and other avenues of profit.
Two Public Leasing Companies in Copier Wars [View instapost]
It is not a Evergreen Clause, but a fee. Often leasing contracts will contain an "exit fee" or "closing fee" that may cover a UCC 3 filing of canceling the original UCC filing or other such documentation.
I have not seen a fee of one more lease payment in any other leasing company, although some have such higher fees, such as Marlin. Most of today's business at LEAF is from their Missouri operation that leases copiers, and at a lower monthly fee than others as they plan on extra payments and this extra payment, which of course gives them a higher yield.
What follows is a list of the bank failures. You would have to click on each one, that takes you to the press release from FDIC, and at the bottom, you will see the loss share.
Financial regulators closed four more banks this week, two in Georgia, one in Florida, and one in Kansas to bring the tally for 2012 to 37.The total cost to the FDIC's deposit-insurance fund: $74.4M. The shuttered institutions are Georgia Trust Bank in Buford, Georgia, and First Cherokee State Bank in Woodstock, Georgia, Royal Palm Bank of Florida of Naples, Florida and Heartland Bank of Leawood, Kansas. [View news story]
Georgia and Florida, two top states. Georgia has many small banks as well as was hit in real estate as was Florida...
Undercapitalized Banks Fall To Lowest Level In 17 Quarters [View instapost]
Undercapitalized Banks Fall To Lowest Level In 17 Quarters [View instapost]
Top bank branch acquisitions since 2012
http://bit.ly/15U4D0a
Less In-Store Branch Banks, but More Deposits
http://bit.ly/15U4EBj
Arizona Real Estate Failures Take Bank Down---Board Of Directors At Fault [View instapost]
I don't know any other media that goes into the depth I do from free information made available by the FDIC---what a wealth of information!
Their reports and financial information tell a great deal of the story and what a wonderful job they do.
Arizona Real Estate Failures Take Bank Down---Board Of Directors At Fault [View instapost]
The problem is the board was interested in real estate primarily
and blinded by that business. It would be like dentists only making loans to other dentists for whatever the dentist wanted to do...all your eggs into one business. If you have 60% of your loans to
one industry, you are in trouble (period). It you have an accounts
receivable to 60% and that business is slow in payment, or
defaults, you are bound to go out of business quickly.
There are many sound community banks, profitable, and written about here. The chairman and the board take ultimate responsibility
as that is their role---staff follows their direction and leadership.
If they don't, they are replaced.
If you have the time, go to this blog and look at the top 100 and top
500 community banks and why they are successful. Banking is a very competitive, tough business, and takes a board that represents all parts of the community, not just one interest---which
happened here---and that is the point of the story.
Arizona Real Estate Failures Take Bank Down---Board Of Directors At Fault [View instapost]
of business, real estate, their vent is real estate, buy more,
lend more, take a risk on real estate, and they promoted their friends in real estate, give them very liberal loans, and yes, they brought
business to the bank---but all in real estate. Very lopsided
portfolio, and then expanding into another town---just to make
more real estate loans and no diversification and hell bent
in one direction. And their timing was awfull!!!
Small Business Lending Down In 2012,but Big Banks Continue To Lead The Market [View instapost]
really am not on top of Canada, where I see Element Financial building too fast to be true, but really don't know. I watch how charismatic personalities such as Gordon Gecko in the movie "Wall Street" lead investors in seeing the emperor wearing clothing.
This report has many facets and is not simple to read.
The charts in the article show an increase in large loans, meaning more money is being lent, and by the larger banks, who are in this marketplace, where the regional and community banks are not. The profits to the banks are up compared to three years ago.
The charts do not show the size of the loans, meaning the loans under $100,000 for business are quite less, as are the $250,000 and many of these are not just the size, but perhaps safety in the margin that the bank charges. This "small ticket" marketplace (considered by banks as under $250,000) is more for the "C" and "D" or as you know, the new businesses, the companies that are "B" but require a larger loan or lease than they would qualify for in the major banks, who are financing other financial institutions who take this type of transaction.
This financing is also in their loan portfolio, and while the profits and dollars are higher, the actual individual loans are down as they are being taken by others, many who the banks finance and are counted in the large loans.
So they are lending more, but not directly...
The reality is there are more payday loans, cash advance, high rate business loans, subprime lenders doing extremely well here in the United States, meeting the demand. If you can increase your profit, improve your cashflow, the rate is not as important as having access to improving your business with more advertising, more product, more inventory, better service, and improving your margins.
The small loan and lease marketplace is seeing more business with non-bank enterprises.
If the banks were lending more, these companies would not be growing as much as they are, as well as being well received by their customers!
So large loans are up,and also are feeding indirectly the small loans who get a great return for the risk. The same may be true in UK and other countries and to put this all in a two page report really does not give you a full analysis.
Not meaning to talk out of the other side of my mouth, I find the
report very interesting, informative, and in a short space, very
good reporting. I wish more people in the industry would read
it and think about it, as you have.
Securities Are Outpacing Loans At US Banks And Thrifts [View instapost]
Kathleen Otto Found Liable for $114.5 Million Ponzi Scheme [View instapost]
Ara Jabagchourian and Aron K. Liang of Cotchett, Pitre & McCarthy, LLP and Donald Fischbach of Dowling, Aaron & Keeler, Inc. began search for the assets (which were few, it appears, as the money had been spent by Otto to keep the Ponzi scheme going).
The FBI has no one to indict, and in reality, Kathleen Otto was only brought into the action in the class action suite for basically being an officer of the corporation. She has filed personal bankruptcy as well as Dan Ramirez. Both basically have nothing, although transfers of real estate and a vehicle before the bankruptcy are being brought up before the judge.
In the meantime “http://bit.ly/XUDWTN blog” started May 14, 2009 has 1098 emails, with victims trying to prove the loss to the IRS to take tax deductions on their losses (many have lost everything, homes, retirement, money saved for kids college education, you name it).
Attorney Ara Jabagchourian is a native of Fresno, and works for Cotchett, Pitre & McCarthy firm that allows him to spend this time as this case the attorneys get 23 1/2% of what is recovered, and doesn't look like too much at all.
The Seven Safest Banks In America [View instapost]
Banks are borrowing at a very low rate, but making less on loans, except for credit cards and other products, so turning to fees and
other avenues of profit.
Are Bank IPOs Heating Up? [View article]
"Reflections on Pearl Harbor " by Admiral Chester Nimitz [View instapost]
Undercapitalized Banks Fall To Lowest Level In 3.5 Years [View instapost]
Two Public Leasing Companies in Copier Wars [View instapost]
I have not seen a fee of one more lease payment in any other
leasing company, although some have such higher fees, such as Marlin. Most of today's business at LEAF is from their Missouri operation that leases copiers, and at a lower monthly fee than others as they plan on extra payments and this extra payment, which of course gives them a higher yield.
Bank Failures Have Declined Over The Last 3 Years [View article]
http://bit.ly/LS3tf7
What follows is a list of the bank failures. You would have to click
on each one, that takes you to the press release from FDIC,
and at the bottom, you will see the loss share.
List of Bank Failures:
http://1.usa.gov/pEdeEp
I have not seen a list, although this site has articles and may
have more information for you:
http://bit.ly/LS3tf9
and this is an excellent bank resource:
http://bit.ly/LS3r6Q
The best is FDIC.gov
Financial regulators closed four more banks this week, two in Georgia, one in Florida, and one in Kansas to bring the tally for 2012 to 37.The total cost to the FDIC's deposit-insurance fund: $74.4M. The shuttered institutions are Georgia Trust Bank in Buford, Georgia, and First Cherokee State Bank in Woodstock, Georgia, Royal Palm Bank of Florida of Naples, Florida and Heartland Bank of Leawood, Kansas. [View news story]
small banks as well as was hit in real estate as was Florida...
http://seekingalpha.co...
Here is an article:
The rise of monster banks
http://bit.ly/Mx4GrI