LoadedBanker

Worrying About Large-Deposit Bank Runs

Dixie's pretty close to the truth. One also wonders how a liquidity crisis occurs at a thrift - which like most thrifts - that is supplied liquidity by the FHLB. So sure, if Treasury twists some arms and FHLB shuts off the spigot, they can create a liquidity crisis wherever they like. Funny how they're opening the discount window and various other facilities with unlimited funds for some institutions, but not others. And, nice job "stabilizing the industry" Paulson. Now Wachovia, NatCity, and who knows which other banks are going into the tank now that you've shown you're willing to wipe out all equity AND debt holders so you can hand a gift to one of your pals.

WaMu: Why Core Deposits Matter

Cheers Jeffers, I couldn't agree more. Vern, deposits are so important you might, say, do ANYTHING to get them? Like, hypothetically speaking, grease a few palms to get local governments to pony up their cash?

Prime Foreclosures Now Greater Than Subprime

It's not that complicated. Subprime was the first to work through the system, and is the first to flatten out. Home equity and Alt A were next, and the curve is flattening at many banks as well. Prime will run a bit longer, then flatten as well. The only question is whether or not any particular bank has reserved enough to pay the bill, and/or has the earnings power to do so going forward. Fannie and Freddie? Well, they're SOL, but that's another topic.

The WaMu Mess: No Surprise Here

Talk about the pot calling the kettle black. Vern, you do remember being tossed out of Commerce on your ear to avoid prosecution right? To see you write about a flawed business model is just amazing. Let's see, pay millions in self-dealing transactions from the company coffers to your real estate company and your wife's design firm, pay off people to get muni deposits, keep this churn and "growth" going to increase your personal wealth and hide franchise performance, and YOU call someone else's business model flawed?!?! Go away. Seriously.

Predatory Banking Practices Undermining the U.S. Consumer

I think your interests are actually quite aligned with the bank, Thomas. You're concerned about people being able to pay their mortgages, and so is the bank! In fact, that's exactly why they pay the largest amount FIRST - so your mortgage payment goes through even if your 40oz King Cobra debit transaction doesn't. Now, you can't have it both ways, you either want people's mortgages paid or you don't.

PS: Half of your face is falling off, you might want to get that checked out.

Predatory Banking Practices Undermining the U.S. Consumer

Two words: Total Crackpot

Are Consumers Going ‘Whoo Hoo’ Over WaMu’s New Campaign?

Yeah, the average consumer is thinking "this rate is below inflation, and factoring in taxes, the yield on my muni bond portfolio delightful in comparison. Glory day I'm a sharp cookie. James, light the fire and bring me a sweater please." Mmmhmm. Right.

Consumers Unhappy with American Airlines' PR

So, you tried to cheap-out and buy separate tickets because you could save a few bucks, your scheme fails due to bad weather, and you want AA to save you from your own foolishness? Man up and take your lumps.

Why is BofA Buying Countrywide?

C'mon now. After the wheels had come off in Q307 Mozillo said CFC would be profitable in the fourth. Analysts and industry alike knew he was full of hot air. Every other company with any tie to the mortgage industry was going into the tank, and somehow they were protected? At that point it was clear he had just bought himself 6-months (if he could just report .01 in Q4 the hammer wouldn't drop until Q108 reporting in Apr) to either sell the company or make some wild all-in bet to come up with some black ink. Now we know which it was.

Let's brush aside all the spin. CFC was a deeply troubled company. The business model relied on short-term capital market funding. That disappeared. They didn't have a deposit base nearly large enough to fund their business. Chuck Schumer and the FHLB were about to cut them off because they didn't want to be left holding the bag. Bottom line, it was over. The orange man got squeezed, and had no choice but to pull the rip cord.

Goodbye, Commerce Bancorp: Vernon Hill Mourns the End of an Era

Yes, he was forced to leave to avoid federal investigation and scrutiny by regulators. Oh, and now he's filed a lawsuit against Commerce for $57 million for wrongful termination. And this guy is seriously going to offer commentary on the bank going forward? Hey Seeking Alpha, kick him to the curb for the sake of your own credibility. He's busy tossing salads now anyway...

Goodbye, Commerce Bancorp: Vernon Hill Mourns the End of an Era

Get serious. Vern is going to critique this company going forward? That's credible. The ego clearly never stops, even after the music does.

Vern, you didn't invent late or Sunday hours. Many banks had tried it before you, but they were smart enough to realize the economics weren't there. Fortunately for you, that wasn't a priority for Commerce. As long as the company was enriching you and your family (when real estate, design and construction of new branches are "all in the family," how couldn't they?), it was all good in the Hill hood. Of course you're going to "spend lavishly" when your wife is being paid for the design work. Shoot, who wouldn't spend a few million more per branch than competitors when it's money in the (personal) bank? Wait, we know the answer. Ethical, law-abiding people. Even your coin counters ripped people off. Remember the Cranky Consumer article in the WSJ that showed your "innovation" was keeping 20 cent of your customers dollar?

This bank was all hype. Glad TD is taking a knife to the thing and trimming the fat. The bank might actually might be viable over the long term if they go far enough.