[hoosiermama]

Here we go again! Only pausing to reposition the cons.

[maggief]

In the case of Shorebank, the management and board was allowed to form Urban Partnership Bank as the new bank taking over the assets and benefiting from the FDIC loss sharing agreement. This can be considered a backdoor bailout of Shorebank that cost the FDIC Deposit Insurance Fund (DIF) $367.7 million. The management team survives even though they managed bad loans and overexposures to C&D loans at 358.4% and to CRE loans at 1839.2%. This is well above the regulatory guidelines of 100% and 300% of risk-based capital respectively. Shorebank’s loan pipeline was 98.4% funded. With the FDIC in the bailout mix, was this bank one of the 775 on the FDIC List of Problem Banks?