Posted on 08/28/2010 9:55:29 AM PDT by george76
The Unofficial Problem Bank List grew by more than five percent this week as the FDIC released its enforcement actions for July 2010. This week, there were 28 additions and 5 removals. Also, the list was updated to reflect assets as of the second quarter. For institutions on the list since the first quarter, aggregate assets declined by $13.9 billion...
Among the 28 additions are TIB Bank, Naples, FL ...Geographically, the additions include 5 institutions from Illinois, 4 from Florida, and 3 from Minnesota.
Next week, the FDIC likely will release the Official Problem Bank List as of June 30th.
(Excerpt) Read more at calculatedriskblog.com ...
The Feds are on a mission to take out as many small banks as possible.
I used to own shares of TIB Financial Corp, the parent company of TIB Bank. The bank used to be almost entirely based in the Florida Keys with branches stretchijng from Key West to just south of Homestead. It was successful and actually paid a nice dividend.
Then, like other banks earlier this decade, they made a lot of questionable loans that have know come to bite them on the butt. About two years ago, they suspended their dividend and their stock price is now at .43 cents. Three years ago, it was $12.00.
Back in February of 2009, TIB purchased the assets of Riverside Bank, a firm that had been taken over by the FDIC. I start to wonder if the FDIC will end up eventually seizing TIB Bank. I think that’d be a first.
They are closing so many banks that they no longer wish to report that weekly?
Now it is only monthly?
There is something interesting to that delay-—watch for it.
The Federal Reserve Wants To Hide ‘Bad Lemon’ Banks For Another Three Months until after the elections?
http://www.freerepublic.com/focus/f-news/2577850/posts
This is not bad news. It’s very good news. For sound, profitable banks, to buy up these failures. I am looking at some of these banks right now.
Have you read George 76 comments about the bank assuming another and failing too? This all smells!
Riverside was Vero Beach based, I think, or further south with branches in Melbourne and Indialantic FL.
Yes, I read it. And of course it smells. You are talking BILLIONS of dollars and the POWER that comes with it.
And these Banks all HATE one another. No love at all. They lie, cheat, steal and back stab one another DAILY.
We bought this one bank that LIED outright to us about their risks and we CAUGHT it just before the deal closed. We offered $2.50 a share plus a number of named officers to be hired on with contracts and severance options.
Then we found out that they had not actually Released ANY but a few Mortgages once they were paid off. Because the cost of actually doing that work exceeded the risks of getting caught.
Now, most states have HUGE fines if you fail to release a note in X days after pay off, but what this bank did, was have one clerk, taking the phone calls for customers who wanted to refi with some other bank and then suddenly found out that the note they paid off 5 years ago was still showing title owned by this bank, just type up a letter of indemnity.
That was it. And the letters were just signed by the corporate attorney. They still did NOT actually RELEASE the note.
Why? Their records were so badly managed over the years and their own acquisitions, that they couldn’t FIND most and the manpower to find them or worse, to pay a title company to recreate the records was in the BILLIONS.
This was a MAJOR former super regional bank mind you. Not the Bugtussle Savings bank of Littlewood, AR or something.
Anyway, we found this problem, added up the penalties and fines, some states which even provide for JAIL terms, and presented this to the board.
They accepted our offer of 75cents a share 3 days later and NO hired contracts were included.
Those guys were lucky nobody served time!
And that is NOT the worst I’ve seen. But, needless to say.. WE didn’t tell anyone about the problem either... we just began to actually DO the work. It took a staff of 65, 2 years and nearly 50 million dollars in fees and fines we couldn’t avoid.
So, when you say it smells, I know. They ALL do. And most American’s have NO IDEA how bad it is.
Boy, I had no idea of the games they play.
I have seen many forms of financial gymnastics within the property tax system...but nothing like that.
Thanks for the understandable descriptions!
I have seen stuff I am not allowed to tell you! LOL
But, I am glad you liked the post!
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