who cares

"The House bill, which passed 223-202, would grant the government new powers to split up companies that threaten the economy, create an agency to oversee consumer banking transactions and shine a light into shadow financial markets that have escaped federal oversight."

THEY'RE ALREADY WATCHING YOU.It's called the PATRIOT ACT.

BARNEY FRANK !!! The same guy that crafted this bill. The same guy that allowed banks to merge into " to big to fail banks". VOTE HIM OUT.

BARNEY FRANK !!! The same guy that crafted this bill. The same guy that allowed banks to merge into " to big to fail banks". VOTE HIM OUT.

Sssshhhhhhh...soon Sarah Palin will pick this line up :laugha: :jump1: :hee: :hihi:

-spence

the Commiecrats never f-ing quit...

Friday, March 13, 2009 | Modified: Wednesday, March 18, 2009
Community bank finds paranoid a smart betFDIC begs to differ, tells bank to lend more
Boston Business Journal - by Tim McLaughlin
Joseph A. Petrucelli is one of the most cautious bankers in America.

In fact, Petrucelli is so cautious that the Federal Deposit Insurance Corp. recently criticized his bank for not lending enough.

The FDIC’s negative review of East Bridgewater Savings Bank’s loan volume is an anomaly in today’s current banking scene as lenders reel from their role in offering too many cruddy mortgage products to borrowers with weak credit.

Still, the FDIC slapped East Bridgewater Savings with a rare “needs to improve” rating after evaluating the bank under the Community Reinvestment Act.[/B]

From late 2003 through mid-2008, East Bridgewater Savings averaged 28 cents in loans for every dollar in deposit. The average loan-to-deposit ratio among similar size savings banks is more than 90 percent, FDIC data show.

“There are no apparent financial or legal impediments that would limit the bank’s ability to help meet the credit needs of its assessment area,” the FDIC said in its CRA evaluation.

FDIC examiners also faulted East Bridgewater for not advertising and marketing its loan products enough. The bank, which does not have a Web site, offers fixed-rate mortgages.

But Petrucelli and his bank occupy the other end of the spectrum in an industry that lost $26.2 billion in the fourth quarter. Even the FDIC’s own deposit insurance fund is in bad need of a boost after paying for an upswing in bank failures.

[B]And then there’s East Bridgewater Savings.

Bad or delinquent loans?

Zero.

Foreclosures?

None.

Money set aside in 2008 for anticipated loan losses?

Nothing.
“We’re paranoid about credit quality,” Petrucelli said. The 62-year-old chief executive has run the bank since 1992.

The negative CRA rating, he said, caught him by surprise. The bank received “satisfactory” CRA ratings from the FDIC in 2003 and from the Massachusetts Division of Banks in early 2006.

East Bridgewater Savings ended 2008 with $135 million in assets and deposits of $84 million.

The bank even squeaked out a profit of $87,000. And its Tier 1 risk-based capital ratio was 31.6 percent, or more than three times higher than many community banks in Massachusetts.

But in the eyes of regulators, East Bridgewater Savings looks stingy. Its net loans and leases equaled 21 percent of assets. That compared with 72 percent among 385 savings banks across the country with assets between $100 million and $300 million.

“We want to make loans,” Petrucelli said. “But we also wanted to avoid the next blow up.”

He said the bank is now in position to boost lending. But he quickly added that East Bridgewater Savings won’t do anything that’s not good for the bank or its customers.

Bart Narter, a senior vice president at Celent, a Boston-based financial research and consulting firm, said small banks face cost disadvantages because they don’t have the scale of their larger rivals. But they also have the means to grow because they have plenty of capital and can make loans when other banks can’t.

“Smaller banks have done a better job of lending because they actually know their borrowers,” Narter said. “Big banks are crunching big numbers, but they don’t know their customers as well.”

At the same time, Narter expects that banks in the $100 million to $300 million asset category, where East Bridgewater Savings is situated, will soon begin to decline in number as they find themselves at a competitive cost disadvantage.

Petrucelli, however, said he believes his bank can grow.

Before the mortgage boom went bust, Petrucelli said, his own employees questioned the bank’s abundance of caution. They saw other banks grow while East Bridgewater Savings sat tight.

“Other bankers wondered if we were crazy because of how cautious we are,” Petrucelli said. “They thought we could be making a lot more money.”

In 2008, loans generated total interest and fee income of $1.6 million. Interest on securities and government bonds generated more than twice as much at $3.8 million.

The son of a railroad worker, Petrucelli’s prudence and caution come from being a first-hand witness to a lending train wreck called Eliot Savings Bank.

In 1989, Petrucelli took over as CEO of Boston’s Eliot Savings after a management team of MBA hotshots turned the sleepy bank into a commercial lending juggernaut. In the hundred years before that rapid transformation, Eliot Savings did home mortgages and handled passbook savings accounts.

It was safe and steady.

But during a three-year commercial lending spree that ended in 1988, Eliot’s commercial loans skyrocketed from less than $2 million to nearly $360 million.

Bad loans already were piling up when Petrucelli arrived on the scene, and he couldn’t prevent the bank from capsizing. “I went down with the ship,” he said.



Tim McLaughlin can be reached at tmclaughlin@bizjournals.com.

The recession is the fault of our government basically encouraging US companies to export jobs overseas to keep profits in check. Less high paying jobs in the U.S. meant less people were able to pay their mortgages and the result was the collapse of the banks that were leveraged 30 or 50 to 1...

Whose fault was it? Every person who buys products made in China is to blame. Buy American. :uhuh:

What Eben said!:uhuh: Can you say NAFTA?

Look for a date when the Glass Steagel Act was changed to let banks grow across state lines and become too big to fail. Anybody remember Ronnie?

The recession is the fault of our government basically encouraging US companies to export jobs overseas to keep profits in check. Less high paying jobs in the U.S. meant less people were able to pay their mortgages and the result was the collapse of the banks that were leveraged 30 or 50 to 1...

Whose fault was it? Every person who buys products made in China is to blame. Buy American. :uhuh:


for the 3rd time ever :)- what he said....

I agree with the loss of jobs overseas, but all of us that borrowed, borrowed, borrowed are to blame as well.

Real estate lawyers and mortgage brokers will drive uo prices again.

remember the first real estate crash circa 1989? things were terrible until around '92 or '93.

Any coincidence that each time a Bush was in office? Too bad Obama was elected to fix the problem. he has made it worse

The recession is the fault of our government basically encouraging US companies to export jobs overseas to keep profits in check. Less high paying jobs in the U.S. meant less people were able to pay their mortgages and the result was the collapse of the banks that were leveraged 30 or 50 to 1...

Whose fault was it? Every person who buys products made in China is to blame. Buy American. :uhuh:

another AMEN, from the amen chorus..
only thing I will add, is blame the folks that hire the guest workers, with or without papers, and send their money OUT of the country..
not only buy American, or (most likely) American owned, but HIRE Americans too. :uhuh:

The recession is the fault of our government basically encouraging US companies to export jobs overseas to keep profits in check. Less high paying jobs in the U.S. meant less people were able to pay their mortgages and the result was the collapse of the banks that were leveraged 30 or 50 to 1...

Whose fault was it? Every person who buys products made in China is to blame. Buy American. :uhuh:
Nebe, you should consider politics.

Your statement makes no real sense, and isn't backed by any facts or anecdotes...but regardless will be instantly adored by the average joe six pack who still holds a full vote.

Excellent job!

-spence

It made me feel good when I posted it. That's all that matters :hihi:
Posted from my iPhone/Mobile device

The real estate bubble and all that came with it.

Nebe, you should consider politics.

Your statement makes no real sense, and isn't backed by any facts or anecdotes...but regardless will be instantly adored by the average joe six pack who still holds a full vote.

Excellent job!

-spence

it was a very broad wide encompassing statement that has some truth to it, no facts or anecdots ( but i'm sure some could be presented if one has the time). we average joe six packs who are lucky that they let us vote may see some merit in his post. sat. 7:30ish- should'nt you be shoe shopping or ironing next weeks outfits :)

FWIW I was speaking with a real estate lawyer the other day and he siad the mortgage institutions are doing the same thing now again as they did before where they are lending to people with no possible way to repay. WTF. :smash:

I'm elated OBAMA's hammering them..... as they deserve it

But i think the Lawyer is Misinformed because the loans are not happening even for people with excellent credit because the lending institution's are sitting on the money. So they are slowing the recovery big-time. :fury: It's been all over the news.

if you have 20% down and a credit score of 700 or better, banks will loan the money to the buyer in our area. Properties here under 350,000 are selling average time on market is 5-6 months, there are no buyers in the 600,000-900,000 range and there is one buyer over a million average time on market 18 months.. If you go through Mass Housing you can put down as little as 3% if you meet their standards.

if you have 20% down and a credit score of 700 or better, .

the average credit score is 650 or lower

Look for a date when the Glass Steagel Act was changed to let banks grow across state lines and become too big to fail. Anybody remember Ronnie?

not sure which Ronnie you are referring to but Bill Clinton enthusiastically signed the repeal and Robert Rubin was the architect....

Nov 12-1999, President Clinton stated, " Glass- Stegal (FDR Banking Bill) is no longer appropriate for our economy. This was good for the industrial age. The (1999) Financial Modernization Bill is the key to rising paycheck and great security for ordinary Americans".

it was a very broad wide encompassing statement that has some truth to it, no facts or anecdots ( but i'm sure some could be presented if one has the time). we average joe six packs who are lucky that they let us vote may see some merit in his post. sat. 7:30ish- should'nt you be shoe shopping or ironing next weeks outfits :)

Shoes? You have no idea :hihi:

-spence

the average credit score is 650 or lower

I'm not saying what the average credit score is, I'm saying what it takes to get a loan from a local bank in my area, a score of 700 or better, 20% down on residential, 25% on commercial and some banks will charge you a higher interest percentage for commercial or a mix use commercial/residential. Before a bank will release monies for a Condo loan the units must be 71% sold or under agreement which means that if a person wants to buy and move in quickly he/she would have to pay cash if the Condo units do not meet the 71% and banks are not releasing monies on existing Condos if there is not a maintenance escrow/reserve account of which a lot of Condos never had before instead if they needed work to be performed they would attach special assessment charges to each owner above and beyond their monthly Condo fee.

Maybe banks in your area are accepting credit scores 650 or less, but I doubt it. Now a mortgage company may accept a lesser credit score.

Politically, it does not matter who is to blame: It matters who is believed to be to at fault by the majority of the electorate.

Politically, it does not matter who is to blame: It matters who is believed to be to at fault by the majority of the electorate.

If the people had or would read up of who is at fault they would find that both Republicans and Democrats are to blame for voting on a bill to deregulate the Glass Steagall Act of 1933. This act helped get us out of the great depression.

The deregulation bill signed by Bill Clinton in 1999 makes it sound like it was all the Democrats fault but, it was the Republicans that brought the bill to the floor both in the senate and house. The Glass Steagall Act was voted down by a huge majority of both Republicans and Dem's in both houses.

People can say what they want about Bush but he had warned congress in 2001 that the economic crisis was coming. From then until now it was the Democrats fault with Barney Frank being a cotributor to what has happened as well as the financial community.

People can say what they want about Bush but he had warned congress in 2001 that the economic crisis was coming. From then until now it was the Democrats fault with Barney Frank being a cotributor to what has happened as well as the financial community.

Bush warned that an economic crisis was coming and then it's the Dem's fault?

If Bush was such a miraculous savant when it came to the economy, maybe forcing through major tax cuts wasn't the best idea then?

How exactly has it been strictly the Dem's fault since 2001? The Republican's held a healthy majority for 5 out of 8 years in the Senate and 6 out of 8 years in the House with Bush in office.

This isn't a strict party issue. Both sides are grossly responsible for the economic breakdown.

who's at fault? how about all the people that just HAD to buy the things they couldnt afford to "keep up with the Jones's" and are now crying about the economy because they have to repay their debt? Bull poopie! Maybe there was some shady lending going on but the consumer needs to know what they are getting themselves into and decide for themselves if they can afford it to begin with.

It was caused by all of the money for nothing. Morgages and loans that were written and leveraged as the ink went down. Rediculous equity loans that had nothing to do with reality. Balloon payments that were impossible for even God's rich uncle to meet. Money for nothing. The money was spent and ultimately we got nothing.

Get ready for the next set of bank/ mortgage default loans that are known as "Option Arm Loans." With this type of loan the interest rate adjust monthly and payment adjust annually. The option is interest only and minimum payment usually less then the interest with the end results being a growing loan balance. This type of loan is known as pick your own loan payment.

This isn't a strict party issue. Both sides are grossly responsible for the economic breakdown.

For sure.

When it comes to mortgages ,20% down should be the rule.

The first mortgage that I applied for, in 1975, required 30% down. I was floored! I was looking at a new house (30K!) and had no idea where to find nearly 10 grand on Cape Cod.

My house was bought during the Carter years. 14% interest. Ahh those were the days.

My house was bought during the Carter years. 14% interest. Ahh those were the days.

17.5 for a PHL South Street row house. Wonderful

But some how we did it. Young family, 2 jobs, heat the house with wood you cut yourself, drive a POS car. and fix it yourself in the driveway. Our kids don't have that drive, we do everything for them.Try to make life easy for them

I think in the end. We are to blame for this whole mess.

YouTube - Monty Python - Four Yorkshiremen (http://www.youtube.com/watch?v=Xe1a1wHxTyo)

But some how we did it. Young family, 2 jobs, heat the house with wood you cut yourself, drive a POS car. and fix it yourself in the driveway. Our kids don't have that drive, we do everything for them.Try to make life easy for them

I think in the end. We are to blame for this whole mess.

Easy credit and I gotta have it now mentality was a big part of it.
Whatever happened to wait till you have the $ to buy it, or put it
on a layaway plan?
No one twisted their arms.