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Posted on 03/28/2009 1:18:45 PM PDT by rabscuttle385
Omni National Bank shut down Friday by federal regulators. FDIC expects failure will cost $290 million, more than any other nationwide.
BY PAUL DONSKY
Omni National Bank in Atlanta, reeling from bad real estate bets, was shut down by federal regulators Friday, becoming the ninth Georgia bank to fail in the past year.
Omni, one of the state’s largest community banks with $956 million in assets, posted a $14.5 million loss last year. Moreover, the bank was saddled with $114 million in nonperforming loans at the end of the fourth quarter.
Omni’s regulator, the Office of the Comptroller of the Currency, said in a news release the bank had experienced substantial losses because of “unsafe and unsound practices” that depleted most of its capital.
(Excerpt) Read more at ajc.com ...
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And Suntrust has billions in TARP money.
I live here, but really have never heard of Omni bank so I kind of imagine the worst.
I also understand how that Greenspan foolishly/artificially stimulated the economy by keeping interest rates dangerously low.
What I don't understand is what compelled these failing banks to jump into a market when they weren't getting much interest return.
I believe Suntrust money is all in preferred stock. Which Suntrust can buy back. Suntrust got TARP money but in the grand scheme of things they’re a fairly small player.
I saw about 5 billion? I guess that is fairly small. God knows they own us lock, stock and barrel so it made me a bit uneasy.
Lots of illegals in Georgia. Concidence?
And the banks keep collapsing, and OBAMA and his ilk do NOTHING to boost the economy. NOTHING. What does that tell you???
They will make a run at nationalizing our money. Again, it is all about POWER AND CONTROL. Nothing else matters to them.
Did they fail and get bailed out, or just get forced into accepting money? I ask because the manager at my local branch said the company was in good financial shape (yeah, and I took that at face value from a company employee, I know) when I jokingly asked if they were going to pull a "Wachovia" anytime soon. He said they were fine, and hadn't made a lot of high-risk loans.
In many cases, the places giving marginal loans weren’t keeping them on their books very long (that’s where the mortgage-backed securities come in). They were repackaging them and selling them as securities with unrealistic credit ratings. Think of it as a big game of hot-potato, where eventually someone was left holding a bunch of worthless mortgage-backed securities, but a lot of people made a lot of money before that.
The places offering mortgages didn’t need Clinton’s prodding to get them to make stupid deals, they just needed a way to get them off their books quickly and keep a nice fee in the process =)
That is a good point. I know our loan is not in any risk. Even with the loss of home value nationwide, ours is strong in my area and I had equity as it was.
“Suntrust got TARP money but in the grand scheme of things they’re a fairly small player.”
And my stock in STI used to be worth more than small change.
This is the third time by my count that Atlanta has gone through a real estate melt down.
William Tecumseh Sherman's ghost is smiling.
Since when is a real estate development loan a bet. There are thousands of subdivisions under development in and around Atlanta, how in the hell these two digit banker thought they could sell them all is beyond me.
The old run around, we were forced to take the money and we cannot force them to take it back. LOL, Has North Western returned the tarp funds yet???
Keep in mind that Atlanta is the city with a Cynthia McKinney Boulevard and then extrapolate just a little.
Then think a little about what the Messiah want to redistribute and to whom and then don’t cry for the bank or for Atlanta
Marxists consider the free market a bet, hence the inference likely written by an expensively indoctrinated English major.
For them government is the only sure thing - death and taxes, not necessarily in that order.
Like GA, hate Atlanta. Passed through it during something called Freaknick or the like years ago. Sick.
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