Wow.
Arkansas National Bank closed its doors...Seems Great Southern Bank (a huge bank in MO) made a really bad loan to them...
http://www.nwanews.com/adg/national/225576/
We live in interesting times.
PeakOil is You
2 banks in MO and Ark in trouble...
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2 banks in MO and Ark in trouble...
by sdcoyote » Wed 14 May 2008, 10:47:29
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Re: 2 banks in MO and Ark in trouble...
by seahorse2 » Wed 14 May 2008, 11:42:30
Yes, in our complex society, failure by one always affects another. So, the failure at ANB caused the largest loan by a neighboring bank to go into default. I believe the CIA calls this "blowback." This doesn't even consider the 900 people working at ANB who are now unemployed.
However, look at this comment:
$this->bbcode_second_pass_quote('', 'I')t seems unlikely that any other Arkansas bank will fail in the near future, several Arkansas bank experts said. But it is very likely there will be more bank failures nationally, they said.
However, look at this comment:
$this->bbcode_second_pass_quote('', 'I')t seems unlikely that any other Arkansas bank will fail in the near future, several Arkansas bank experts said. But it is very likely there will be more bank failures nationally, they said.
This is bullshit. I work as a lawyer here in Arkansas and had dealt with ANB loan foreclosures here. Months ago, I posted ANB was in trouble and wouldn't make it. They didn't. However, they are not the only bank here that won't make it. On my personal "risk list" there are at least 3 others that I don't see making it, most likely not through the end of the year.
Further, ANB failed due to failing home loans. Wait until commercial loans go bad. That's a whole new ballgame that's just getting warmed up.
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Re: 2 banks in MO and Ark in trouble...
by seahorse2 » Wed 14 May 2008, 13:02:10
Update on ANB disaster, and this is a DISASTER UNFOLDING:
Spoke to a builder that had all his construction loans there at ANB. He had to get an appointment to get into the bank yesterday to see if funds would be available to keep his projects going. People are only allowed in the bank if they have a scheduled appointment. They are escorted through the building and then back out of the building by armed guard. All builder's accounts are frozen, meaning the five homes he has coming out of the ground are effectively stopped until further notice, bc no funds available. Was told that loans may not be purchased by another bank for up to six months. This means those houses will deteriorate and will be worth a lot less by the time funds are made available to him. This means more people (his crews) now out of work.
While in the bank, he saw a grown man with his head in his hands crying, bc he had lost $1 million dollars.
Spoke to a builder that had all his construction loans there at ANB. He had to get an appointment to get into the bank yesterday to see if funds would be available to keep his projects going. People are only allowed in the bank if they have a scheduled appointment. They are escorted through the building and then back out of the building by armed guard. All builder's accounts are frozen, meaning the five homes he has coming out of the ground are effectively stopped until further notice, bc no funds available. Was told that loans may not be purchased by another bank for up to six months. This means those houses will deteriorate and will be worth a lot less by the time funds are made available to him. This means more people (his crews) now out of work.
While in the bank, he saw a grown man with his head in his hands crying, bc he had lost $1 million dollars.
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seahorse2 - Expert
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Re: 2 banks in MO and Ark in trouble...
by Eli » Wed 14 May 2008, 17:38:22
If I had lost a million dollars and it was all that I had I would be balling my eyes out too.
Keep us posted about the Banks you think are in trouble, care to give us any hints. Not that you are saying that they will fail just that they need to be watched.
Keep us posted about the Banks you think are in trouble, care to give us any hints. Not that you are saying that they will fail just that they need to be watched.
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Re: 2 banks in MO and Ark in trouble...
by Denny » Wed 14 May 2008, 17:53:50
Well, at least deposits are protected by the CDIC.
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Denny - Heavy Crude
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Re: 2 banks in MO and Ark in trouble...
by smallpoxgirl » Wed 14 May 2008, 18:05:09
$this->bbcode_second_pass_quote('Denny', 'W')ell, at least deposits are protected by the CDIC.
FDIC only protects deposits up to $100,000. The gentleman that lost $1,000,000 is SOL.
"We were standing on the edges
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
Of a thousand burning bridges
Sifting through the ashes every day
What we thought would never end
Now is nothing more than a memory
The way things were before
I lost my way" - OCMS
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Re: 2 banks in MO and Ark in trouble...
by Denny » Wed 14 May 2008, 20:16:47
$this->bbcode_second_pass_quote('smallpoxgirl', '
')
FDIC only protects deposits up to $100,000. The gentleman that lost $1,000,000 is SOL.
')
FDIC only protects deposits up to $100,000. The gentleman that lost $1,000,000 is SOL.
Sorry, I forgot, its FDIC. I guess that shows the value oif diversifying. Putting too many eggs in one basket, a mvoe he'll be kicking himself for.
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