Bank tied to Jones rapped for insider loans (Kentucky Gov Eight Belles Horse Owner)

Kentucky Com ^ | May 4, 2008 | John Cheves

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Former Gov. Brereton Jones has borrowed heavily from a financially distressed bank that he and several other Democratic Party leaders founded in 2001, according to interviews and bank records.

Federal regulators have criticized the directors of Frankfort-based American Founders Bank, including Jones, for inadequate supervision. The bank was badly managed and suffered "hazardous lending and lax collection practices," which left it with far too many unpaid loans, according to the Federal Deposit Insurance Corp.

Among the specific concerns cited was improper reporting and recordkeeping of insider loans to bank directors and executives.

The FDIC issued a cease-and-desist order to the bank eight months ago to warn it about potential insolvency and try to avoid a taxpayer bailout.

Jones, 68, owner of Airdrie Stud horse farm in Woodford County, is the only insider to borrow enough money that the bank is required by law to identify him, which it did at the Herald-Leader's request. Generally, that threshold is $500,000 or five percent of the bank's capital, whichever is less.

Jones would not say how much of the $11 million in insider loans was his. He said he used the loans to refinance, at a lower interest rate, his 2003 purchase of historic, 495-acre Woodburn Stud farm on Old Frankfort Pike, which originally listed for $7.4 million. According to land records, last July Jones also took $16 million in mortgages on his farm properties from Louisville-based PBI Bank in exchange for various loans and a line of credit.

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Something is rotten in Kentucky and I'm not talking about horse hockey. Former Dem Gov is owner of Eight Belles who was put to sleep at the Kentucky Derby. Presidential candidate Hillary Clinton was strongly pushing the story of the filly to the press and public and that should get everyone's alarm up. When the Clintons are pushing some story or cause, it should be examined very closely.

You have a case that combines corrupt politicians ransacking a bank (stiffing the taxpaying public like the Whitewater scandal), a stud farm mortgage and dead horse that was pushed to the public by candidate Hillary.

With the Kentucky primary coming up, the stench alone may be enough to politically wipe out the Clintons.

[Abby4116]

Eight Belles was owned by Rick Porter of Delaware. I can’t find any ties to the KY governor.

[Blue Highway]

Not to mention her attention whore of a daughter was present at the event. Co-incidence, or not?

This tragedy has the signature Clinton type stamp all over it.

[LibFreeOrDie]

You are confusing the former gov (Brereton Jones) with Eight Belles’ trainer (Larry Jones). Not related. Brereton had nothing to do with Eight Belles.

There is a happy connection between the two Joneses: Brereton Jones is the breeder/owner of Proud Spell, the filly who won the Kentucky Oaks at Churchill Downs on Friday. Proud Spell is trained by Larry Jones. The filly owned by Brereton survived her race.

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Thanks for the correction. I just read the owner Porter wants to cremate Eight Bells, but I think both state and racing officials would want a thorough medical exam of the horse.

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Thanks for the correction. I just read the owner Porter wants to cremate Eight Bells, but I think both state and racing officials would want a thorough medical exam of the horse.

[Abby4116]

I read that the horse will be cremated AFTER a necropsy and his ashes will be returned to Delaware Park, where he was stabled.

[BluH2o]

I read that the horse will be cremated AFTER a necropsy and his ashes will be returned to Delaware Park, where he was stabled.

Eight Belles was a gorgeous filly with a courageous heart.

[RonPaulLives]

BLUEGRASS PING