Richard Suttmeier noted here on February 22 that three banks which acquired the assets of failed banks on Friday, February 18, 2011, are themselves overexposed to construction and development loans or commercial real estate loans, or both:
Three of the banks that acquired the assets of Friday’s failed banks were also in violation of the regulatory guidelines for exposures of risk-based capital to construction and development loans and to commercial real estate loans. SCBT National Association (SCBT) has risk ratios of 145% for C and D loans and 423.7% for CRE loans that are 89.3% funded. Bank of Marin (BMRC) has a risk ratio of 67.4% for C and D loans, which is fine, but has a 485.2% exposure for CRE loans with a loan pipeline that’s 78.7% funded. First California Bank (FCAL) has a risk ratio of 41.5% for C and D loans, which is fine, but has a 358.2% exposure to CRE loans with a loan pipeline of 86.9%. ValuEngine rates each of these banks a Hold. The FDIC policy of rewarding banks with overexposures to real estate loans is deciding which banks fail and which banks survive, which is wrong.
State capitalism is the official economic policy of the American Fascist Police State.
