Posted on 01/24/2010 9:25:05 AM PST by Cheap_Hessian
Federal regulators seized Charter Bank in New Mexico this week as its capitalization fell below requirements, making it the latest of scores of banks to have failed in the economic crisis. However, the Albuquerque Journal reports that Charter faced a very low default rate on residential loans and no commercial failures, either — until the Office of Thrift Supervision, its regulator, demanded that Charter increase its risk fivefold (hat tip HA reader Super5):
Federal authorities on Friday closed Charter Bank, a closely held, family-run financial institution known for its financing of low-income housing in New Mexico and for the philanthropy of its owners. …
Last fall, Office of Thrift Supervision examiners, responding to the national collapse of real estate development, ordered Charter to increase its allowance for loan losses from $10.8 million to $55.4 million, even though Charter had no delinquent commercial construction loans and only .34 percent of the loans in its commercial real estate portfolio were behind on their payments. That order reduced the level of capital Charter had on its books.
Last Wednesday, OTS ordered Charter to find new capital as a buffer against insolvency or face closure.
Charter had hoped to find a buyer, but none appeared. The owners’ stake in the company was wiped out by the forced closure.
In other words, Charter hadn’t offered enough risky loans to suit the OTS and the Obama administration.
(Excerpt) Read more at hotair.com ...
People, this is type of crud we are fighting against with the Obama Administration.
They are corrupt, incompetent, disgustingly vile people who use their power to destroy others simply for the power trip.
They must go.
“Did the Obama administration cause the failure of a New Mexico bank?”
The headline alone doesn’t need a rocket scientist to know that everything, and I mean EVERYTHING, the Obama touches turns to crap! Of course his administration caused the failure and unless we reverse the fear factor, he will destroy us ... the government needs to fear us, not the other way around. People in fear of their government is TYRANNY!
Ping!
A new development to the story you posted.
Ha, never mind. You are already on the thread. :D
I keep my fingers crossed in hopes my local bank doesn’t go under. It is a New Mexico bank like Charter, with a local businessman and his family as owners, looking after this community. It is a great bank, just the kind Obamao and his jackbooted thugs want to destroy. This goes beyond social engineering. Obamao and his criminal syndicate are forcing these closures to take control of the banking system.
I’ve been suspicious of the closing of a local bank here in WA. The bank had some troubles, that’s for sure, but they were involved with financing some commercial developments that the local leftists were fighting in court. The leftists lost the court battle and were appealing the ruling when the bank was ordered closed and taken over by another bank which doesn’t involve themselves in commercial development. So that ended the battle for the leftists.
There has got to be a lawsuit in there somewhere.
Since when has the government had the constitutional authority to change rules in the middle of the game and force them into insolvency?
I hope they lawyer up.
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