Stop the Congressional Budget Deal and Zombie Bankers … by gimleteye

Video not working on cell phones  (try link, it is a very good video and works on cell phones)

It is beyond horrifying that to make a budget deal, the House of Representatives caved in to lobbyists for the Big Banks who want to DIAL BACK the minimal reforms made as a result of the last financial crisis in 2007. This blog chronicled the thievery at the local level throughout the 2000's leading up to the near-collapse of the world financial system thanks to the greed of hucksters, bankzters, and mortgage schemers.

South Florida, the fraud capital of America, bears the scars across the built landscape: crap housing and zero lot line subdivisions, condos that should never have been built and wouldn't have but for the sham "demand" created by banks turned into casino operators thanks to Congress and the White House.

Now they want to do it all over again?

Please make your calls today to Senator Marco Rubio and Senator Bill Nelson: tell them to vote against the deal made by the House! Let Congress pass a stop-gap measure until daylight chases the banker lobbyists from the Capitol.


Call Congress To Oppose Backroom Wall Street Deal
December 11, 2014
by Isaiah Poole
This post first appeared at Campaign for America’s Future.

We’re calling for an all-out push today to stop a backroom deal that would reopen the Wall Street derivatives casino that caused so much damage in 2008, with taxpayers stuck with the bill for cleaning up the mess.

We’ve joined forces with Americans for Financial Reform in asking people to call their representative in the House – you can use the main Capitol switchboard number, 202-224-3121 – and call on Congress to reject this giveaway to Wall Street.

US Century Bank Deal Does Not Pass Smell Test

The Miami Herald published yesterday the latest in a series of puff pieces on the insider piggy bank, US Century Bank. "Miami may be a major metropolis, but in certain circles, all it takes to raise the capital to buy a $1 billion bank is one degree of separation." Well, it takes Eye On Miami to explain exactly how that one degree of separation works in this case, and none of it is explained for readers in the Herald article.

The bottom line, here, is the Herald is promoting a bank sale constructed around walking away from $50 million in US taxpayer money. The $50 million walked away through the bank created by lobbyists and the local representatives of the Growth Machine: Sergio Pino and Ramon Rasco. Pino built a bank to match his ambitions for US Century Homes, dreamt to be the local version of Lennar: the soup to nuts Miami-based homebuilder. Oh, I forgot. According to the Herald, $5 million is to be repaid by the new investors who -- one way or another -- comprise a syndicate of the Great Destroyers.

Irony scarcely covers the issue, on a weekend commemorating the Herald as its 1 Herald Plaza site was demolished, thanks to a bottomless pile of money from Asian gamblers. That's where the one degree of separation lies. You won't read it in the Herald.

Genting was only temporarily deterred from its outsized plan to turn Miami into the Las Vegas of Latin America. It will patiently chip away at resistance to gambling until it achieves its aims.

There is plenty of detail, how Genting spreads its money around. The trio involved in the planned US Century Bank takeover -- Rok, Tate, and Perez -- all washed tens of millions for their short term -- like half a year -- investment in the subordinated debt purchased on the property adjacent to the Herald site.

To achieve its grandiose plans, Genting needed the former Omni property and the company needed agents; politically influential insiders to advance its cause; a large enough footprint for its multi-billion investment in Miami gambling.

The Genting money came at the propitious time that Perez was negotiating his name (and contribution) to the Miami Art Museum. Viewing the whole enterprise, it seems a magician trick worthy of Houdini.

It is astonishing that Jorge Perez materialized whole and was not shut down by the banks during the housing bust or otherwise held to account for the condo mess he created on the banks of the Miami River.

There must be teams of bankers grinding their teeth reading how he now appears on the pages of Forbes and America's richest men. I'd like to know what they think of "one degree of separation".

To continue the theme; it is as though US Century Bank founders, Pino and Rasco, in ginning up the worst excesses of the housing boom -- spreading platted subdivisions into wetlands, environmentally sensitive lands, and spinning public policies into carefully crafted hairballs (like the HABDI fiasco, even earlier) -- simply dissolved from the memory bank of the Miami Herald. (To be fair, the Herald never would print those stories in the first place, giving rise to blogs like ours.)

Because of our $50 TARP investment in US Century, the public deserves to know exactly whose loans cratered on the balance sheet of US Century Bank. My guess is that hundreds of millions sits in undeveloped "agricultural" lands outside the Urban Development Boundary waiting for the miracle to come: the extension of sprawl through the agency of Miami Dade Expressway Authority and the expansion of State Road 836. What are the terms of those loans? Have the borrowers -- who may have been directors of US Century Bank -- repaid their mortgage and principal according to legal obligations?

If the federal government allows the takeover of US Century Bank, by Miami insiders, these facts will vanish the same way likely as US Century debt owed to US taxpayers: the largest unpaid TARP obligation in the state of Florida.

Ocean Bank FINALLY on the mend? By Geniusofdespair

Since September 30th 2009 I have been tracking the Bauer Financial star rating of Ocean Bank. The Bank has always had ZERO stars. I couldn't believe my eyes yesterday when they had one star. Bauer says about their ratings: "Zero-Stars is our lowest star rating. These institutions are included on our Troubled & Problematic Report and are facing considerable challenges at this time." One star means "Troubled." 5 Stars is their highest rating. U.S. Century Bank is still zero.

How are local banks doing? By Geniusofdespair

Every quarter Bauerfinancial rates bank financial well-being with stars. If you're a bank you don't want your ratings to drop and you certainly don't want 2 stars - Problematic or 1 star - Troubled. And, a bank with "0" stars is in deep shit. Bauerfinancial only recommends 4 or 5 star banks. I listed all the banks in our area and I have been checking them periodically since 2009. You can see their progression... or in the case of Ocean Bank, they have just remained in their zero hole over the years. Both Ocean Bank and U.S. Century Bank are operating under a Consent Order. City National Bank is operating under a Formal Agreement with the Dept. of the Treasury and Coconut Grove Bank is under a Written Agreement with the Federal Reserve.

Below is the list of local banks that I have been tracking. The September 30th 2009 rating appears before the bank name. The ratings, posted for December 2009, March 2010, June 2010 and September 9, 2010 appear after the name ONLY if the star rating has changed. Some I refreshed, so you would know I did check them all. I haven't reviewed their star ratings in awhile but the NEWEST star rating for March is in red at the end of the line. You can see if the bank has gotten better or worse.

Banks in green have bit the dust.

** 1st National Bank of South Florida, Homestead - Still at 2, 9/9/2010  3/12 ***
***1/2 Bac Florida Bank, Miami - Still at 3 1/2, 9/9  3/12 ***1/2
*** Bank of Coral Gables. December: **/March: */June 2010 ZERO. Sept.: * 3/12 ZERO
ZERO Bank of Miami NA, Coral Gables (June 2010  ZERO) 9/10 ZERO - Closed 12/10
** Bank Atlantic, December: ***/March: **/September 2010: ** 3/12 **
*** Biscayne Bank, Coconut Grove. March: **/June 2010 **/Sept. 2010 *** 3/12 *** 1/2
***** City National Bank of Florida, Miami. March: ****/June 2010 *** 3/12 ****

(for the rest of Miami-Dade Banks, hit read more)

Is Your Bank on This Severe Enforcement List? By Geniusofdespair

When you consider that 1) a bank has to put in new anti-money laundering systems (Ocean Bank), 2) 32% of Florida based based banks are currently operating under severe regulatory enforcement and 3) Florida led the nation in bank failures in 2010 with 29 (all according to a report in the Miami Herald) you have to wonder if we Floridians have all lost our collective minds. I guess we have, two words prove it: Rick Scott.

Bank Watch: Bank of Miami NA bites the dust. By Geniusofdespair

Bank Watch: I have been keeping track of the health of Miami Dade Banks since September 2009 via the BauerFinancial ratings. Bank of Miami NA in Coral Gables started out as a ZERO Bank and remained at zero every quarter until last time I checked in Sept. 2010. From the FDIC website:

On Friday, December 17, 2010, The Bank of Miami, National Association (N.A.), Coral Gables, FL was closed by the Office of the Comptroller of the Currency. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

Its operation was turned over to 1st United Bank of Boca Raton and they paid 38 million for the assets of Bank of Miami, according to the South Florida Business Journal. The officers of the holding company that owned the bank are:

SOLER, FRANSISCO A
121 ALHAMBRA PLAZA , PENTHOUSE 2
CORAL GABLES FL 33134
Title D

ATWILL, WILLIAM
121 ALHAMBRA PLAZA , PENTHOUSE 2
CORAL GABLES FL 33134
Title D

RIBADENEIRA, DIEGO
121 ALHAMBRA PLAZA , PENTHOUSE 2
CORAL GABLES FL 33134
Title D

MEJIA, CARLOS J
121 ALHAMBRA PLAZA , PENTHOUSE 2
CORAL GABLES FL 33134
Title EVP

PRESTAMO, ALBA M
121 ALHAMBRA PLAZA , PENTHOUSE 2
CORAL GABLES FL 33134

Question for Finance People... By Geniusofdespair

If you are in foreclosure proceedings (personally or as a named officer/mgr. of a corporation) with a couple of different banks for millions of dollars, are you allowed to remain on the Board of Directors of a financial entity, i.e. another bank?

Isn't there some sort of law that you must step down? Are there no rules for becoming a Bank Board member? Foreclosures can be drawn out for quite some time if you have money to fight them (see blue graphic). When do rules kick-in, if ever?

BauerFinancial Spetember Quarterly Reports on Banks. By Geniusofdespair

Every quarter Bauerfinancial rates bank financial well-being with stars. If you're a bank you don't want your ratings to drop and you certainly don't want 2 stars - Problematic or 1 star - Troubled. And, a bank with "0" stars is in deep shit. Bauerfinancial only recommends 4 or 5 star banks.

Below is the list of local banks that I have been tracking for 5 quarters. The September 30th 2009 rating appears before the bank name. The ratings, posted for December 2009, March 2010, June 2010 and September 9, 2010 appear after the name ONLY if the star rating has changed. Some I refreshed, so you would know I did check them all.

There is only one local 5 star bank left, Intercontinental Bank of West Miami. The Bank Manager said the secret to their success is "Being Purdent." U.S. Century Bank is still at 1 star. Ocean is still at ZERO. Two more ZERO local banks bit the dust this quarter, taken over by FDIC: Metro Bank and Turnberry Bank.

** 1st National Bank of South Florida, Homestead - Still at 2, 9/9/2010
***1/2 Bac Florida Bank, Miami - Still at 3 1/2, 9/9
*** Bank of Coral Gables. December: **/March: */June 2010 ZERO. Sept.: *
ZERO Bank of Miami NA, Coral Gables (June 2010 Still ZERO) Sept. 2010 ZERO
** Bank Atlantic. December: ***/March: **/September 2010: **

(for the rest of list, hit read more)
*** Biscayne Bank, Coconut Grove. March: **/June 2010 **/Sept. 2010 ***
***** City National Bank of Florida, Miami. March: ****/June 2010 ***/Sept. 2010 ***
** Community Bank of Florida, Homestead/ Sept. 2010 **
**** Continental National Bank, Miami. June 2010 ***1/2/Sept. 2010 ***1/2
*** Gibraltar Private Bank & Trust Coral Gables. June 2010 ***1/2/Sept. 2010 ***1/2
** Great Eastern Bank of Florida. March: */ June 2010 */September 2010 *
* Great Florida Bank, Miami. June 2010 ZERO /Sept. 2010 ZERO
*** Helm Bank, Miami. Sept. 2010 still ***
***** Intercontinental Bank West Miami. June 2010 still *****/Sept. 2010 *****
*** Intercredit Bank NA, Miami. March: **/June 2010 **/Sept. 2010 **
***1/2 International Finance Bank, Miami. Sept. 2010 still ***1/2
***1/2 JGB Bank NA, Miami. March ***/June 2010/Sept. 2010 ***
*** Marquis Bank June 2010 (was a start-up prior) Sept. 2010 ***
** Mellon United National Bank, Miami. December: */March ** (Changed Names Sabadell)
** Metro Bank of Dade County, Miami. December: ZERO June 2010 ZERO, Sept. SEE FDIC
**** Northern Trust NA, Miami. Sept. 2010 still ****.
ZERO Ocean Bank, Miami. June 2010 still ZERO. Sept. 2010 still ZERO.
*** Pacific National Bank, Miami. December: **/Sept. 2010 **
** Plus International Bank, Miami December: ***/Sept.2010 ***
ZERO Premier American Bank, Miami. ADIOS - SEE FDIC (Now it is a start-up)
ZERO Republic Federal Bank NA, Miami. ADIOS - SEE FDIC (off list 9/2010)
----Sabadell /(was Mellon Bank) Sept. 2010 ***
*** Sunstate Bank, Miami. Sept. 2010 ***
*** TerraBank NA, Miami. Sept. 2010 ***
*** Total Bank, Miami. December **/ June 2010 ***/Sept. 2010 ***
*** Translantic Bank, Miami. June 2010 ***1/2/Sept. 2010 ***1/2
ZERO Turnberry Bank, Aventura June 2010 Still ZERO//Sept. 2010 FDIC
** Union Credit Bank, Miami. December: ZERO// June 2010 ***/Sept. 2010 ***
*** US Century Bank, Miami. March: **/ June 2010 */Sept. 2010 *

Candidate Obdulio Piedra's Employer In Trouble and Lynda Bell's Campaign Report. By Geniusofdespair

Yes, Candidate for County Commission District 8 Obdulio Piedra's Bank is in trouble according to the South Florida Daily Buisness Review with second quarter losses of $8.2 million dollars. "On April 13, state and federal regulators hit Great Florida Bank with an enforcement order that gave it 120 days to reach heightened capital ratios." That deadline is Mid-August. Obdulio is the Market President for Miami Dade County for Great Florida Bank. He has been an officer, according to Forbes.com, since January 2007. Great Florida has been a "0" bank on BauerFinancial since June.

I wouldn't care about this except Obdulio has repeated at Candidate's Forums that Government should run more like a business. Hmmm. Not the Banking business I hope.

Lynda Bell collected $40,459.21 of which $16,000 were loans to herself. She got $4,000 from Torcise interests. Torcise's Company Atlantic Civil had an option to buy agreement with Lennar to build mega-development Florida City Commons a few years back on the wrong side of the UDB line. He is now rock mining that land. Bell also got $2,000 from Miguel DeGrandy and family, Vile Natacha's favorite lobbyist. There were 4 donors common to Natacha on Lynda's report: Zuni Transportation, SDI Quarries, Allied Trucking and Jorge Azor.

Another Bank Bites the Dust. By Geniusofdespair

Turnberry Bank, once a thriving bank in Aventura, was taken over by the FDIC and closed on July 16. I knew it was coming because they have been a zero bank on Bauerfinancial's ratings for a long time. As it says on the sign: "Your money is safe!" But all these neighborhood bank closures, they couldn't be good for the local economy. There were State Trooper cars outside the bank Saturday and a whole lot of people inside scrambling. I saw 3 people at a desk with through a window. An FDIC guy came out because I was taking pictures through the windows after I was barred by a guard from the ante-lobby. He reluctantly let me take these photos of the door. Maybe the Chamber of Commerce should put some of their focus on the banking industry, where people also have jobs in jeopardy, real jobs, not temporary jobs.

Which bank is next?

Miami Banks: June Star Rating by BauerFinancial. Geniusofdespair

Every quarter Bauerfinancial rates bank financial well-being with stars. If you're a bank you don't want your ratings to drop and you certainly don't want 2 stars - Problematic or 1 star - Troubled. And, a bank with "0" stars is in deep shit. Bauerfinancial only recommends 4 or 5 star banks.

Below is the list of local banks that I have been tracking for 4 quarters. The September 30th 2009 rating appears before the bank name. The ratings, posted for December 2009, March 2010 and June 2010 appear after the name ONLY if the star rating has changed. Some I refreshed, so you would know I did check them all.

There is only one local 5 star bank left, Intercontinental Bank of West Miami. The Bank Manager said the secret to their success is "Being Purdent." U.S. Century Bank is in a downward spin with 1 star now -- moving down pretty quickly.

** 1st National Bank of South Florida, Homestead
***1/2 Bac Florida Bank, Miami
*** Bank of Coral Gables. December: **/March: */June 2010 ZERO
ZERO Bank of Miami NA, Coral Gables (June 2010 Still ZERO)
** Bank Atlantic. December: ***/March: **

(for the rest of list, hit read more)
*** Biscayne Bank, Coconut Grove. March: **/June 2010 **
***** City National Bank of Florida, Miami. March: ****/June 2010 ***
** Community Bank of Florida, Homestead
**** Continental National Bank, Miami. June 2010 ***1/2
*** Gibraltar Private Bank & Trust Coral Gables. June 2010 ***1/2
** Great Eastern Bank of Florida. March: */ June 2010 *
* Great Florida Bank, Miami. June 2010 ZERO
*** Helm Bank, Miami
***** Intercontinental Bank West Miami. June 2010 still *****
*** Intercredit Bank NA, Miami. March: **/June 2010 **
***1/2 International Finance Bank, Miami
***1/2 JGB Bank NA, Miami. March ***/June 2010
*** Marquis Bank June 2010 (was a start-up prior)
** Mellon United National Bank, Miami. December: */March ** (Changed Names Sabadell)
** Metro Bank of Dade County, Miami. December: ZERO June 2010 still ZERO
**** Northern Trust NA, Miami
ZERO Ocean Bank, Miami. June 2010 still ZERO
*** Pacific National Bank, Miami. December: **
** Plus International Bank, Miami December: ***
ZERO Premier American Bank, Miami. ADIOS - SEE FDIC (Now it is a start-up)
ZERO Republic Federal Bank NA, Miami. ADIOS - SEE FDIC
*** Sunstate Bank, Miami
*** TerraBank NA, Miami
*** Total Bank, Miami. December ** June 2010 ***
*** Translantic Bank, Miami. June 2010 ***1/2
ZERO Turnberry Bank, Aventura June 2010 Still ZERO
** Union Credit Bank, Miami. December: ZERO, June 2010 ***
*** US Century Bank, Miami. March: **, June 2010 *

Banks: The new Star Ratings are out! By Geniusofdespair

Of the 286 Banks looked at in the State of Florida, 45 had ZERO ratings and 4 were closed by the FDIC. In comparison, in New York, of 197 Banks rated, 4 had ZERO ratings and there were no closures.

Every quarter Bauerfinancial rates bank financial well-being with stars. If you're a bank you don't want your ratings to drop and you certainly don't want 2 stars - Problematic or 1 star - Troubled. And, a bank with "0" stars is in deep shit. Bauerfinancial only recommends 4 or 5 star banks.

Below is the list of local banks that I have been tracking for 3 quarters. The September 30th 2009 rating appears before the bank name. The ratings, posted for December 2009 and March 2010, appear after the name ONLY if the star rating has changed. More than a few dropped a star.

Of the 7 zero star banks, Republic Federal Bank NA and Premier American Bank are gone. None of the zero banks from September improved their rating. There is only one local 5 star bank left, Intercontinental Bank of West Miami. Of the 33 local banks below, only 14 have 3 stars or more.

** 1st National Bank of South Florida, Homestead
***1/2 Bac Florida Bank, Miami
*** Bank of Coral Gables. December: **/March: *
ZERO Bank of Miami NA, Coral Gables
** Bank Atlantic. December: ***/March: **
(for the rest of list, hit read more)
*** Biscayne Bank, Coconut Grove. March: **
***** City National Bank of Florida, Miami. March: ****
** Community Bank of Florida, Homestead
**** Continental National Bank, Miami
*** Gibraltar Private Bank & Trust, Coral Gables
** Great Eastern Bank of Florida. March: *
* Great Florida Bank, Miami
*** Helm Bank, Miami
***** Intercontinental Bank West Miami
*** Intercredit Bank NA, Miami. March: **
***1/2 International Finance Bank, Miami
***1/2 JGB Bank NA, Miami. March ***
** Mellon United National Bank, Miami. December: */March **
** Metro Bank of Dade County, Miami. December: ZERO
**** Northern Trust NA, Miami
ZERO Ocean Bank
*** Pacific National Bank, Miami. December: **
** Plus International Bank, Miami December: ***
ZERO Premier American Bank, Miami. ADIOS - SEE FDIC
ZERO Republic Federal Bank NA, Miami. ADIOS - SEE FDIC
*** Sunstate Bank, Miami
*** TerraBank NA, Miami
*** Total Bank, Miami. December **
*** Translantic Bank, Miami
ZERO Turnberry Bank, Aventura
** Union Credit Bank, Miami. December: ZERO
*** US Century Bank, Miami. March: **

LOOK AT THIS GRAPHIC: Of the first 10 in New York there were 6 5 star banks and no zero banks. Of the first 10 in Florida there were no 5 star bank and one zero bank. The rest of the list followed suit in both states.

Bauerfinancial Year-End Star Ratings for Our Local Banks. By Geniusofdespair

Below is the list of local banks' Bauerfinancial star ratings. The September 30th rating appears before the bank name. The new rating, posted for December 23rd, appears after the name if the star rating has changed. Only two banks gained a star, 5 lost one and Republic Federal Bank NA is out. It had ZERO stars previously so this wasn't unexpected. The Miami Herald looked at the ratings for the entire State of Florida and they say 1/3 of banks are troubled. The articles states that according to Bauerfinancial, that is 3 times the National average. Bauer only recommends 4 or 5 star banks (there are only 4 of these on my list). Beware of falling stars readers!:
** 1st National Bank of South Florida, Homestead
***1/2 Bac Florida Bank, Miami
*** Bank of Coral Gables **
ZERO Bank of Miami NA, Coral Gables
** Bank Atlantic ***
(for the rest of list, hit read more)
*** Biscayne Bank, Coconut Grove
***** City National Bank of Florida, Miami
** Community Bank of Florida, Homestead
**** Continental National Bank, Miami
*** Gibraltar Private Bank & Trust, Coral Gables
** Great Eastern Bank of Florida
* Great Florida Bank, Miami
*** Helm Bank, Miami
***** Intercontinental Bank West Miami
*** Intercredit Bank NA, Miami
***1/2 International Finance Bank, Miami
***1/2 JGB Bank NA, Miami
** Mellon United National Bank, Miami *
** Metro Bank of Dade County, Miami
**** Northern Trust NA, Miami
ZERO Ocean Bank
*** Pacific National Bank, Miami **
** Plus International Bank, Miami ***
ZERO Premier American Bank, Miami
ZERO Republic Federal Bank NA, Miami FDIC
*** Sunstate Bank, Miami
*** TerraBank NA, Miami
*** Total Bank, Miami **
*** Translantic Bank, Miami
ZERO Turnberry Bank, Aventura
** Union Credit Bank, Miami ZERO
*** US Century Bank, Miami

Nationwide Bank Failures, Amtrust Goes Belly-up. By Geniusofdespair

Reposting this (I wrote it Thursday night before Amtrust and 5 other banks went belly-up) as the Miami Herald reported today, Regulators on Friday shut down Ohio's AmTrust Bank, the fourth-largest bank to fail this year. They also closed five others, bringing to 130 the number of U.S. banks to be brought down so far in 2009 by recession and mountains of bad debt. I wonder who is footing the bill for this Amtrust ad in the Miami Herald that coincidentally appeared today. My post:

According to the FDIC about 26 banks failed in 2008. 3 failed in 2007, 4 in 2004 and 8 in 2002. Lets look at 2009: we have a whopping 124 bank failures nationwide on this list, one third of those since September. That is quite a jump. Here is the list -- Georgia and Illinois are both well represented - I marked Florida Banks in red, they are mostly on the West Coast:

(Hit image to enlarge it)




And there are more...

Watch Your Bank. By Geniusofdespair

No advance notice is given to the public when a financial institution is closed:

On Friday, November 13, 2009, the Florida Office of Financial Regulation closed Orion Bank, Naples, FL. Subsequently, the Federal Deposit Insurance Corporation (FDIC) was named Receiver.

To see if your bank might be in trouble, check the bank's star rating. To see who has been embezzling at banks recently (like at First Bank of Jacksonville and Capital City Bank) check out this list. There have been 6 removals of Financial Institution Staff in 2009 as reported by the Florida Office of Financial Regulation. In all the other years there have been 3 or less. Is embezzling on the rise at financial institutions or is oversight better?

Chase Bank Sucks Part 2. By Geniusofdespair

Remember my post in 2008, Chase Bank Sucks? No, of course you don't. Well, I was canceled without notice on a Chase Credit Card I had had for 25 years. It was my first credit card. I was never late with a payment or missed one in 25 years. In the end, I just said to myself f--k them and closed that book.

In a bizarre twist of fate, I opened a Marriott credit card recently, and I just realized it is, of all things, a Chase Bank credit card with Marriott's name on it!

Miami Banks: BauerFinancial STAR Rating. By Geniusofdespair

BauerFinancial - a company that rates all U.S. banks, recommends only the institutions that they give Five-Stars or Four-Stars. You can imagine what they think of the 'zero star' banks. Let's see how some of our local banks measure up in their 'star' rating:

** 1st National Bank of South Florida, Homestead
***1/2 Bac Florida Bank, Miami
*** Bank of Coral Gables
ZERO Bank of Miami NA, Coral Gables
** Bank Atlantic
*** Biscayne Bank, Coconut Grove
***** City National Bank of Florida, Miami
** Community Bank of Florida, Homestead
(for the rest of list, hit read more)
**** Continental National Bank, Miami
*** Gibraltar Private Bank & Trust, Coral Gables
** Great Eastern Bank of Florida
* Great Florida Bank, Miami
*** Helm Bank, Miami
***** Intercontinental Bank West Miami
*** Intercredit Bank NA, Miami
***1/2 International Finance Bank, Miami
***1/2 JGB Bank NA, Miami
** Mellon United National Bank, Miami
** Metro Bank of Dade County, Miami
**** Northern Trust NA, Miami
ZERO Ocean Bank
*** Pacific National Bank, Miami
** Plus International Bank, Miami
ZERO Premier American Bank, Miami
ZERO Republic Federal Bank NA, Miami
*** Sunstate Bank, Miami
*** TerraBank NA, Miami
*** Total Bank, Miami
*** Translantic Bank, Miami
ZERO Turnberry Bank, Aventura
** Union Credit Bank, Miami
*** US Century Bank, Miami

BauerFinancial says they update the star ratings 4 times a year, and:
Institutions rated 2-stars and below are put on our Troubled and Problematic Report.

Miami Herald says Local Banks are Facing a Real Estate Crisis. By Geniusofdespair

This chart (hit it to enlarge) from a Miami Herald article (titled S. Fla. Banks face new real-estate crisis) yesterday, dovetails off Gimleteye's post above.

How to read the chart? Well, we know that the Nations banks have to be superior to Florida's so the closer the banks get to "Other US Bank" numbers, I would assume, the better. For example, let's take US Century Bank. Their percentage of Commercial Real Estate loans is almost 70%. The number is 24.04% for "Other US Banks". Reserves for Non-performing assets, US Century has almost 15%. Nationwide banks have 83.39%. To be fair, the rest of the nation doesn't have an economy based on the behavior of a cancer cell, thus, Florida banks are more heavily invested in the real estate market. The low reserves are particularly shocking since there will be more need for them, according to the Miami Herald.

Absolutely, positively: must listen... "Bringing the Hammer Down on Derivatives" ... by gimleteye

"Fresh Air", available on local PBS station WLRN, has a terrific segment with New York Times financial journalist and business columnist Gretchen Morgenson about the enormous jeopardy to the US economy and taxpayers by Big Banks obstructing substantive reform of their most profitable business line: those derivative debt instruments that started the economic crisis in the first place. I agree with Morgenson, 100 percent: that the failure by first Bush and now Obama to deal decisively with the problem has opened the economy to risk of an even greater downturn in the near future. When President Obama says "we are not out of the woods yet", what he fails to add is that the Big Banks that have received hundreds of billions in direct subsidies by taxpayers want more. Morgenson makes this difficult-to-understand topic easily accessible: don't miss it! You can listen to the archive, by clicking here. And when you do, remember our archive "housing crash" details why Miami is the epicenter of the collapse in home market values: this is the place where local and state politics lined up from Wall Street finance to local zoning councils to convert wetlands and farmland into housing tracts that now lie virtually worthless in pools of mortgage backed securities whose costs Morgenson describes so clearly.

Deutsche Bank Dumping Foreclosed Homes In Miami. By Geniusofdespair

Deutsche Bank has sold a slew of foreclosed homes in the North section Miami-Dade County for bargain basement prices. Maybe what is happening is that this bank is finally recognizing derivative losses to its balance sheet, and writing off the underlying mortgages.

1. 425 NE 114 Street which sold for $325,000 in 4/2006, sold recently for $100,000. The assessed value in ‘08 was $295,053. EQUITY LOSS: $225,000
2. 345 NW 118 Street which sold for $499,500 in 9/2006, sold recently for $174,000. The assessed value in ‘08 was $225,250. EQUITY LOSS: $325,500
3. 661 NE 52 Terrace which sold for $759,000 in 5/2005, sold recently for $350,000. The assessed value in ‘08 was $510,373. EQUITY LOSS: $409,000
4. 224 NW 64 Street which sold for $339,000 in 5/2006, sold recently for $135,000. The assessed value in ‘08 was $337,252. EQUITY LOSS: $204,000
5. 11940 NW 16th Avenue which sold for $230,000 in 7/2006, sold recently for $64,900. The assessed value in ‘08 was $137,144. EQUITY LOSS: $165,100
6. 11930 N. Bayshore Drive (I could only find a comp. in the same line, 2 floors below that sold for $190,000 in 4/2007) sold recently for $56,000. The assessed value in ‘08 was $178,130. EQUITY LOSS (estimate): $134,000
7. 780 NE 69 St. which sold for $460,000 in 12/2005, sold recently for $155,000. The assessed value in ‘08 was $244,000. EQUITY LOSS: $305,000

How long will it take for consumers, who are badly shaken by job losses around the country, to come back into the South Florida real estate markets? At the height of the boom, as much as 70 percent of new housing construction was being purchased by flippers and speculators. I strongly doubt that this segment of the market is coming back, at all, in our lifetimes. So: two conclusions. Not only do we have a supply of housing inventory that far, far exceeds demand (Parkland, Krome Gold, anyone?), we also have sharply falling government revenues.


If banks are unloading mortgages at a fraction of a dollar, how long will it be before tax assessments are geared downward? If we look at only these 7 properties and compare the combined assessed value of $1,927,202 to the combined actual value (the selling price) of $1,034,900. That is about a 46% drop in taxable equity from 2008 assessments.

Multiply this effect by millions of homeowners and you can see that the "green shoots" in the economy probably mean that once the housing markets find a bottom, we will be bouncing there for years while taxes go up and inflation increases. It is not a pretty picture, but before blaming Obama; remember how we got here and who profited from this misery.