Tuesday, June 01, 2010

Three Blind Mice

Imagine the smile on the Captain's face when he saw not one, not two, but THREE banks he had approached before regarding having him do their loan analysis for them mentioned in this little article.

Now if only...ah, never mind. You know the rest of it.

1 comment:

Anonymous said...

I find it interesting that almost all of the consent orders from the FDIC require finding a competent banking consultant approved by the District Comptroller. Apparently there must be a list of such bank consultants the FDIC must choose from.

Most also include reviewing performance and qualifications of the current board members, officers and key employees. If the board, officers and key employees aren't qualified, the bank is required to replace them with qualified people. In short, cronyism takes a back seat and competency gets moved to the driver's seat.

A lot of these consent orders have to do with hanging on to debt rather than charging them off as bad debt. I can understand holding off for some period of time in case the issue is one of cash flow or of a temporary nature, but why do banks hold on to such bad debt for years?