Vicksburg MI 49097 | kstate90 - 12/5/2012 10:53
My guess is that the examiners forced them to take ownership back in the first part of November. The problem with operations of this size is that they are very complex and it is harder to sort out all the assets and liabilities of each entity. Examiners do not look at every loan a bank has when they are examined. They look at a percentage of what is in the loan portfolio. Unless the loan was on the Watch List of the bank it could fly under the radar for years until its number came up. For Wells Fargo this loan is most likely a small loan which would make it more likely that it could be missed by examiners. Once it was exposed and the examiners classified it they would look at it each time they came back and may even monitor it monthly.
Even if Wells Fargo would have wanted them to take their loans somewhere else it would have been hard for them to find a lender due to their size. If they are as bad as it appears by the Bankruptcy filings it would have been impossible for them to refinance. Nobody wins in this situation. The unsecured creditors are out their money, the bank will most likely lose even though they are "secured" ( My guess is that the assets are overvalued). The community really loses.
All those banks that passed up on financing him should be celebrating.
Too big to Fail doesn't just apply to banks. In the 1980's a lot of the farmers that were insolvent were kept alive by write downs and work out plans. The farmers that were closer to solvency were sold out because the banks could recover their money. It is hard to understand but desperate people do desperate things. The 1980's were desperate times. Farmers were desperate, bankers were deperate.
My rule of thumb is that the more someone tells me how great they are the greater the odds are that it is all a smoke screen.
Character still means something!
If you think the 1980's were Bad what about the 1930's My Grandfather told me stories of many people who lost their Farms to the Banks in the 1930's people who went through the Great Depression were very cautious to borrow money.
Now 51% of this Countries voters are ignorant enough to Re-Elect a President who is stupid enough to think he can save the Economy by borrowing and spending Trillions on the Stimulus Package.
He claims he saved General Motors from Bankruptcy, but GM did Go Bankrupt and they Closed Delphi and all of the Salaried Delphi Employees lost their Pension. Now the Tax payers own 58 Billion worth of GM Stock Purchased at 58$ per share and worth $20 per share today. |
Anyone listed in Stamp Farms Bankruptcy
