GRAN soon should be much much higher!!!

you still here bud?

tomorrow is the last day...

cant wait to get my 3.375 share conversion.

FNBN Announces Full Subscription of $310 Million Private Placement (8/02/11)

Completion of Capital Raise Fulfills Key Contingency for FNB Acquisition of Bank of Granite

Regulatory and Shareholder Approvals Represent Next Steps in the Merger Process

ASHEBORO, N.C., Aug. 2, 2011 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN), parent company of CommunityONE Bank, N.A., today announced that investors have agreed to subscribe for a total of $310 million in company common stock in a private placement, contingent on obtaining shareholder and regulatory approvals and satisfaction of other conditions. Issuance of the common stock at $0.16 per share will complete the recapitalization of FNB United, which is a key contingency in its plan to acquire Bank of Granite Corporation (Nasdaq:GRAN), parent company of Bank of Granite.

The proposed acquisition will unite two 100-year-old institutions, creating a North Carolina community banking organization with approximately $2.8 billion in assets, $2.4 billion in deposits and 63 full-service banking offices located in some of the state's most robust markets. The transaction remains subject to receipt of regulatory approvals and shareholder approval of both banking companies.

"Completion of the capital raise is a significant event for community banking in North Carolina," said Brian Simpson, who will serve as CEO of the combined organization. "Two banking companies that have served their communities faithfully for more than 100 years will be revitalized so that the traditions of service to business owners and consumers can continue. We believe this is positive news for each of the communities served by CommunityONE and Bank of Granite and for our entire state."

The Carlyle Group and Oak Hill Capital Partners are lead investors in the capital raise, each having entered into definitive agreements with FNB United to invest $79 million, each subject to conditions contained in the investment agreements. FNB United has now entered into additional definitive subscription agreements with additional investors providing the investment of the remaining capital of $152 million, subject to conditions contained in the subscription agreements.

Jim Burr, Managing Director of The Carlyle Group, said: "This strong and experienced leadership team is well positioned to address current challenges and build for the future. The revitalization of any bank franchise begins with seasoned leadership, and Brian, Bob and their team have the depth and breadth of experience needed for this opportunity."

FNB United will be headquartered in Asheboro, N.C. Subject to the satisfaction or waiver of the remaining conditions, the transaction is expected to close in October of 2011. The two bank subsidiaries (CommunityONE and Bank of Granite) will be operated as separate entities for a period of time; it is anticipated that the merged bank will be named CommunityONE Bank, N.A. at a future date to be determined.

"Brian and I have been gratified by the response we have received from the investment community," said Bob Reid, who will serve as President of the combined banking company. "A great deal of work remains ahead, but with this commitment of capital and the talented teams being put in place at CommunityONE and Bank of Granite, we believe that the resulting institution will be positioned to effectively serve its communities in the future."

Jim Campbell, Chairman of FNB United, said: "I would like to commend all of our employees for their commitment to customer service as we have navigated through these challenging times. This focus on the customer has been invaluable in assuring that we are well positioned for the revitalization that is planned with our new capital and our new banking partners."

John Bray, Chairman of Bank of Granite, said: "The success of the capital raise is great news for our customers, our employees and the communities we serve. CommunityONE and Bank of Granite have long traditions of personalized service that is a hallmark of community banking. The addition of capital and the merger of our organizations will ensure that this spirit lives on."

The Transaction

FNB United Corp. will be operated by new management after the recapitalization and merger, led by Brian Simpson as Chief Executive Officer and Bob Reid as President.

The merger agreement provides that Bank of Granite shareholders will receive 3.375 shares of FNB United Corp.'s common stock in exchange for each share of Bank of Granite common stock they own immediately prior to completion of the merger.

Completion of the merger and the investments are dependent on each other and the satisfactory completion of a number of other conditions, including the exchange of FNB preferred stock held by the U.S. Treasury for FNB common stock on the terms specified in the merger and investment agreements, CommunityONE having repurchased SunTrust's outstanding debt and preferred stock on the terms specified in the agreements, receipt of regulatory approvals, the approval of the shareholders of both FNB United Corp. and Bank of Granite Corporation, and FNB and Bank of Granite meeting specified financial condition requirements contained in the merger and investment agreements.

Sandler O'Neill & Partners, L.P. and Raymond James & Associates, Inc. are acting as placement agents in connection with the private placement of the FNB United common stock.

About FNB United Corp.

FNB United Corp. is the Asheboro, N.C.-based bank holding company for CommunityONE Bank, N.A. Opened in 1907, CommunityONE Bank operates 45 offices in 38 communities throughout central, southern and western North Carolina, and offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services.

About Bank of Granite Corporation

Bank of Granite Corporation is the parent company of Bank of Granite. Founded in 1906, Bank of Granite operates 18 full-service banking offices in seven North Carolina counties – Burke, Caldwell, Catawba, Iredell, Mecklenburg, Watauga and Wilkes.

http://globenewswire.com/newsroom/news.html?d=228238

Im Back!!! Math looks good for the merger for GRAN longs. Thank you Carlyle group.

Merger notices...deal to close by 9/30/11...LINK

http://seekingalpha.com/article/281494-merger-arbitrage-mondays-july-25-2011?source=marketwatch

waiting for next move over 1

ride the wave GRAN going higher!

FNBN & GRAN merger still on track as of 6/22/2011

Upon consummation of the Merger, each outstanding share of the Company’s common stock, par value $1.00 per share, other than those held by the Company, FNB, Merger Sub or any of their respective wholly-owned subsidiaries that are not owned by such parties, in a fiduciary capacity or as a result of debts previously contracted, will be converted into the right to receive 3.375 shares of FNB’s common stock, par value $2.50 per share.

One of the conditions to the closing of the Merger is the settlement of indebtedness of CommunityONE Bank, National Association, a wholly-owned subsidiary of FNB (“CommunityONE”), outstanding and held by SunTrust Bank for cash at the discounted values specified in the Merger Agreement (the “SunTrust Settlement”).

On the terms and subject to the conditions set forth in a letter agreement, dated May 31, 2011, between CommunityONE and SunTrust Bank, SunTrust Bank has preliminarily agreed to settle CommunityONE’s indebtedness for cash in amount equal to 35% of the principal thereof, plus 100% of the unpaid and accrued interest on the debt as of the closing date of the Merger.

On June 16, 2011, FNB, Merger Sub and the Company entered into Amendment No. 1 to the Merger Agreement (the “Amendment”) to increase the discounted settlement amount of the SunTrust indebtedness specified in the Merger Agreement from 25% to 35% of the principal thereof, plus 100% of the unpaid and accrued interest on the debt as of the closing date of the Merger.

http://ih.advfn.com/p.php?pid=nmona&article=48107428

Well said.......but when the smoke settles and YOU ARE A GRAN SHAREHOLDER........YOU WILL BE REWARDED! Hammer

The r/s 10 for 1


Both GRAN and FNBN have to be above $1 for 30 days
by mid September!!!

This DEAL is done sometime 3rd quarter..end of JULY!!!

Treasury will exchange their preferred shares with FNBN
common...which is why there will be enough shares for
GRAN 3.375 conversion....I am sooooo buying at lows
here and now...

.65 divided by 3.375 put FNBN price at .1925
.0325 cents above Carlyle and Oakhill cost of .16!

Tricky.....


GRAN gets 3.375 shares of FNBN
FNBN at this time is .42
GRAN at .65???

Private investors get FNBN shares @.16 putting a value
of .54 for GRAN

Carlyle closed a deal with CPF recently. They got shares
of CPF for .50, however BEFORE the r/s the share price was
1.51....3x!

Let's do the same scenario with these two banks FNBN & GRAN

They get FNBN @ .16....before the r/s if they are 3x that
FNBN would be .48(currently .42)

That puts GRAN 3.375 shares of FNBN for every 1 share owned
at a value of 1.62

Just sayin....do your research people.

I see buy price always gets filled even though the ask
price doesn't correllate...alot of sneaky market makers
out there playin with GRAN at the moment :)

no problem.....thank you

You are correct..it is a 1 for 10 R/S. This I did not know. My apologies.

http://www.bizjournals.com/charlotte/print-edition/2011/04/15/Reverse-stock-split-to-keep-Granite.html

Doing 'a formula' as I see it.....

.93 granite divided by 3.375=. 2755 <that figure represents
FNBN price comparison .2755 cents!

At the moment, Granite the better buy...and will be until
FNBN drops below .2755 cents...

That said, did some research on MFFAIS website and 98% of
the institutions holding millions of shares of FNBN bought
in at .31PPS yes, .31PPS...go to MFFAIS and you'll see it
there....

I think granite is a great buy.

We get 3.375 shares of fnbn(for each 1 granite) first
Prior to r/s...I'll use a 1:20 example

6000 shares of Granite x 3.375=20,250 fnbn
So prior we convert to 20,250 shares
THEN r/s using 20....
20,250 divided by 20= 1012.5 shares post split.

If Granite stays lower in pps than fnbn...we gain $
when we enter FNBN price because we GET 3.375 shares.

Keep dividing Granites closing price daily by 3.375 and
that's what FNBN's price should be...the higher it stays
the better for GRAN holders!

a 10;1 reverse split was being voted on at the shareholder meeting on 16may as to ensure they stat on big board...on google finance it lists the split in the news from apr i believe

buyorsell40 writes: ..."AND IF WE GET 3.75 SHARES OF FNBN PER EACH SHARE WE HOLD HERE.."

It's not a matter of "if". The merger agreement provides that Bank of Granite shareholders will receive 3.375 shares of FNB's common stock in exchange for each share of Bank of Granite common stock they own immediately prior to completion of the merger.

buyandsell40 Writes: "WILL THAT BE PRIOR TO SPLIT??"

I do not see any mention of a split.

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=62518035

-tbc-

I only have time for a quick response but will answer the first part of your question and get back to you.

buyorsell40 writes: HOW LONG SHOULD THE MERGERS TAKE?

Banks are a highly regulated business. Because of that alot of I's must be dotted and T's crossed before the Regulators will bless (or reject) the deal. FNBN isn't exactly the model of a healthy bank and I'm sure they're getting a prostrate exam as we speak. Any Bank proposing a merger with another gets the exam but especially a weak bank like them.

Personally I think we're looking at late summer/fall 2011 before we see a decision.

HOW LONG SHOULD THE MERGERS TAKE? AND IF WE GET 3.75 SHARES OF FNBN PER EACH SHARE WE HOLD HERE(WILL THAT BE PRIOR TO SPLIT?? WHAT HAPPENS TO THE FNBN SHARES I HOLD... DO THEY JUST GO UP 56% @ CONVERT TO THE NEW MERGED FNBN...OR DO WE GET A CHECK FOR OUR SHARES + THE 56% PREMIUM CANT WRAP MY HEAD AROUND THIS ...WHICH IS THE ONE WE SHOULD BE ACCUMULATING MORE OF...OR IS THE END RESULT THE SAME...I DONT THINK IT IS...MAYBE SOMEONE COULD USE $10.00 PPS FOR GRAN AND .64PPS ON FNBN AND LETS SAY WE HOLD 1000 OF GRAN AND OBVIOUSLY IT HAS SPLIT AND 10,000 SHARES FNBN AS AN EXAMPLE

GRAN is a NO BRAINER HERE.....thats fo sho. Hammer

If the merger between Bank of Granite Corp and FNB United were to complete as of today *May 11, 2011 this would be the exchange scenerio:

Buy 1 share of GRAN @ .94 you would get 3.375 shares of FNBN @ .67 each x 3.375 = $2.26 thus realizing a $1.32 gain on each share of GRAN you held.

* The exchange (gain or loss) can only be configured the day the deal is complete. This is for example purposes only. Stock prices the day of the merger completion are no doubt subject to change.

Im so happy, I could cry.

Nice run today...where is everybody?

Do we see this stock moving up today?

From post #203-

FNB United Corp. and Bank of Granite Corp. to Merge

The Carlyle Group and Oak Hill Capital to Invest $155 Million in FNB United Corp.

Brian Simpson and Bob Reid to Lead New Management Team

ASHEBORO, N.C., April 27, 2011 (GLOBE NEWSWIRE) -- FNB United Corp. (Nasdaq:FNBN), parent company of CommunityOne Bank, N.A., and Bank of Granite Corp. (Nasdaq:GRAN), parent company of Bank of Granite, today announced plans to merge, contingent on shareholder, regulatory and other approvals, the successful recapitalization of FNB United and other conditions. The merger of these 100-year-old institutions will create a North Carolina community banking organization with approximately $2.9 billion in assets, $2.4 billion in deposits and 63 full-service banking offices located in some of the state's most robust markets. The combined parent company will be called FNB United Corp., and will be operated by new management, led by Brian Simpson as Chief Executive Officer and Bob Reid as President. FNB United will be headquartered in Asheboro, N.C. The transaction is expected to close during the third quarter of 2011. Thereafter, the two bank subsidiaries (CommunityOne and Bank of Granite) will be operated as separate entities until a future date, after which the merged bank will be named CommunityOne Bank, N.A.

As part of this transaction, The Carlyle Group and Oak Hill Capital Partners, two private equity firms with a history of successful investing in the financial services sector, have each entered into definitive agreements with FNB United to invest $77.5 million in the common stock of FNB United subject to the conditions set forth in the agreements as part of a $310 million private placement of FNB United's common stock. The Carlyle Group and Oak Hill Capital Partners will each receive approximately 484 million shares of common stock at the closing not to exceed 24.9 percent of the then-outstanding shares of common stock, valued at $0.16 a share.

John Bray, Chairman of Bank of Granite, said, "Bank of Granite and CommunityOne share many synergies, including the top priority of providing excellent and reliable banking services to our local communities. Both institutions have enjoyed great successes and weathered challenging times for more than a century, and the announcements today will help position both companies for the future."

Jim Campbell, Chairman of FNB United, said, "The past few years have presented FNB United with significant challenges, and through this proposed merger we will embrace a new way forward from a position of strength. We are excited that the prospective management team is led by native North Carolinians, Brian Simpson as Chief Executive Officer and Bob Reid as President, who will provide exceptional leadership for this new institution."

New Management

Mr. Simpson is a former senior executive and Operating Committee member at First Union Corporation with 17 years of banking experience. During his career, he was responsible for leading segments of First Union's capital markets activities. Mr. Simpson was also responsible for balance sheet management, including interest rate sensitivity, funding and liquidity management.

Mr. Reid has 30 years of financial services experience with extensive leadership roles in community banking, retail banking, corporate banking, commercial banking, business banking, real estate finance, capital management and wealth management at Wachovia Corporation and its predecessor, First Union. Mr. Reid held numerous regional leadership positions throughout his career with Wachovia and First Union in Pennsylvania, Delaware, New Jersey, New York, Connecticut, Tennessee and North Carolina.

New Board

The prospective management team will be supported by a new board of directors that includes Austin Adams (Chief Information Officer, JP Morgan Chase, BankOne and First Union); Jerry Licari (national banking practice leader, KPMG LLP); Chan Martin (retired treasurer and senior risk executive, Bank of America); and Jerry Schmitt (former asset/liability committee chairman, First Union). The new board will also include one representative each from The Carlyle Group and Oak Hill Capital Partners, and two FNB United and one Bank of Granite legacy board members.

The Transaction

The merger agreement provides that Bank of Granite shareholders will receive 3.375 shares of FNB's common stock in exchange for each share of Bank of Granite common stock they own immediately prior to completion of the merger.

Completion of the merger and The Carlyle Group and Oak Hill Capital Partners investments are dependent on each other and the satisfactory completion of a number of other conditions including the exchange of FNB United preferred stock held by the U.S. Treasury for FNB United common stock on the terms specified in the merger and investment agreements, receipt of regulatory approvals, the approval of the shareholders of both FNB United and Bank of Granite, FNB United raising $310 million inclusive of The Carlyle Group and Oak Hill Capital Partners investments, the board and management structure referenced in the agreements, receipt of advice that the private placement investments will not impair FNB United's existing net operating loss deferred tax asset, FNB United and Bank of Granite meeting specified financial condition requirements and not having experienced material adverse effects and events, and other customary closing conditions. The U.S. Treasury has issued a letter, dated April 6, 2011, indicating its agreement to exchange FNB United's preferred stock held by the U.S. Treasury for FNB United common stock having a value equal to the terms specified in the merger and investment agreements, subject to the execution of a definitive agreement with the U.S. Treasury, the completion of the capital raise, and the completion of certain other matters.

About FNB United Corp.

FNB United Corp. is the Asheboro, N.C.-based bank holding company for CommunityOne Bank, N.A. Opened in 1907, CommunityOne Bank operates 45 offices in 38 communities throughout central, southern and western North Carolina, and offers a complete line of consumer, mortgage and business banking services, including loan, deposit, cash management, wealth management and internet banking services.

About Bank of Granite Corporation

Bank of Granite Corporation is the parent company of Bank of Granite. Founded in 1906, Bank of Granite operates 18 full-service banking offices in seven North Carolina counties – Burke, Caldwell, Catawba, Iredell, Mecklenburg, Watauga and Wilkes.

About The Carlyle Group

The Carlyle Group is a global alternative asset manager with $106.7 billion of assets under management committed to 84 funds as of December 31, 2010. The Carlyle Group invests across three asset classes - corporate private equity, real assets and global market strategies - in Africa, Asia, Australia, Europe, North America and South America focusing on aerospace & defense, consumer & retail, energy & power, financial services, healthcare, industrial, infrastructure, technology & business services, telecommunications & media and transportation. Since 1987, the firm has invested $68.7 billion of equity in 1,035 transactions. The Carlyle Group employs more than 990 people in 19 countries. Web: www.carlyle.com; Case Studies: www.carlylegroupcreatesvalue.com; Video: www.youtube.com/OneCarlyle

About Oak Hill Capital Partners

Oak Hill Capital Partners is a private equity firm with more than $8.2 billion of committed capital from leading entrepreneurs, endowments, foundations, corporations, pension funds and global financial institutions. Robert M. Bass is the lead investor. Over a period of more than 24 years, the professionals at Oak Hill Capital Partners and its predecessors have invested in more than 60 significant private equity transactions. Oak Hill Capital Partners is one of several Oak Hill partnerships, each of which has a dedicated and independent management team. These Oak Hill partnerships comprise over $30 billion of investment capital across multiple asset classes. For more information about Oak Hill Capital Partners, please visit www.oakhillcapital.com.

http://www.carlyle.com/Media%20Room/News%20Archive/2011/item11916.html

FNB United To Merge With Bank Of Granite; Shares Surge 4/27/2011 11:42 AM ET RELATED NEWSFNB United Corp., Bank Of Granite Corp.

FNB United Corp. (FNBN: News ), the parent company of CommunityOne Bank, N.A., Wednesday announced its plan to merge with Bank of Granite's parent company Bank of Granite Corp. (GRAN). Following news, FNB shares climbed 76 percent on the Nasdaq while Bank of Granite stock soared over 59 percent.

Under the merger deal, Bank of Granite shareholders will receive 3.375 FNB common shares in exchange for each Bank of Granite common share they own. The transaction is expected to close during the third quarter of 2011.

The merger of these 100-year-old institutions is subject to the successful recapitalization of FNB, in addition to other regulatory approvals. On April 6, the U.S. Treasury has issued a letter indicating its agreement to exchange FNB's preferred stock held by the Treasury for FNB common stock having a value equal to the terms in the merger and investment agreements.

The merger will create a North Carolina community banking organization with about $2.9 billion in assets, $2.4 billion in deposits and 63 full-service banking offices.

The combined company will be called FNB United Corp. with headquarters in Asheboro, North Carolina. The company will be operated by a new management led by Brian Simpson as Chief Executive Officer and Bob Reid as President.

Simpson is a former senior executive and Operating Committee member at Wachovia Corp.'s predecessor First Union Corp. with 17 years of banking experience. Reid has 30 years of financial services experience at Wachovia and First Union.

CommunityOne and Bank of Granite will be operated as separate entities until a future date. After that, they will be combined under the name CommunityOne Bank, N.A.

Private equity firms Carlyle Group and Oak Hill Capital Partners have agreed with FNB to invest $77.5 million as part of a $310 million private placement of FNB's common stock. Each will receive about 484 million FNB common shares at the closing not to exceed 24.9 percent of the then-outstanding shares of common stock, valued at $0.16 a share.

The combined company's board of directors will include one representative each from Carlyle and Oak Hill, and two FNB and one Bank of Granite board members.

FNBN rose $0.17 or 78 percent and is trading at $0.42 on 611,679 shares.

GRAN is trading at $0.8601, up $0.3201 or 59.28 percent, on a volume of 786,263 shares.

source: http://www.rttnews.com/Content/BreakingNews.aspx?Id=1607758&SimRec=1&Node=B1

The Transaction
The merger agreement provides that Bank of Granite shareholders will receive 3.375 shares of FNB's common stock in exchange for each share of Bank of Granite common stock they own immediately prior to completion of the merger.

good timing

GRAN MERGER......OH HELL YES.....FINALLY....Hammer

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FNB United Corp. and Bank of Granite Corp. to Merge

Apr 27, 2011 07:00:10 (ET)



Apr 27, 2011 (GlobeNewswire via COMTEX) --

The Carlyle Group and Oak Hill Capital to Invest $155 Million in FNB
United Corp.

Brian Simpson and Bob Reid to Lead New Management Team




ASHEBORO, N.C., April 27, 2011 (GLOBE NEWSWIRE) -- FNB United Corp. (FNBN, Trade ), parent company of CommunityOne Bank, N.A., and Bank of Granite Corp. (GRAN, Trade ), parent company of Bank of Granite, today announced plans to merge, contingent on shareholder, regulatory and other approvals, the successful recapitalization of FNB United and other conditions. The merger of these 100-year-old institutions will create a North Carolina community banking organization with approximately $2.9 billion in assets, $2.4 billion in deposits and 63 full-service banking offices located in some of the state's most robust markets. The combined parent company will be called FNB United Corp., and will be operated by new management, led by Brian Simpson as Chief Executive Officer and Bob Reid as President. FNB United will be headquartered in Asheboro, N.C. The transaction is expected to close during the third quarter of 2011. Thereafter, the two bank subsidiaries (CommunityOne and Bank of Granite) will be operated as separate entities until a future date, after which the merged bank will be named CommunityOne Bank, N.A.

As part of this transaction, The Carlyle Group and Oak Hill Capital Partners, two private equity firms with a history of successful investing in the financial services sector, have each entered into definitive agreements with FNB United to invest $77.5 million in the common stock of FNB United subject to the conditions set forth in the agreements as part of a $310 million private placement of FNB United's common stock. The Carlyle Group and Oak Hill Capital Partners will each receive approximately 484 million shares of common stock at the closing not to exceed 24.9 percent of the then-outstanding shares of common stock, valued at $0.16 a share.

John Bray, Chairman of Bank of Granite, said, "Bank of Granite and CommunityOne share many synergies, including the top priority of providing excellent and reliable banking services to our local communities. Both institutions have enjoyed great successes and weathered challenging times for more than a century, and the announcements today will help position both companies for the future."

Jim Campbell, Chairman of FNB United, said, "The past few years have presented FNB United with significant challenges, and through this proposed merger we will embrace a new way forward from a position of strength. We are excited that the prospective management team is led by native North Carolinians, Brian Simpson as Chief Executive Officer and Bob Reid as President, who will provide exceptional leadership for this new institution."

New Management

Mr. Simpson is a former senior executive and Operating Committee member at First Union Corporation with 17 years of banking experience. During his career, he was responsible for leading segments of First Union's capital markets activities. Mr. Simpson was also responsible for balance sheet management, including interest rate sensitivity, funding and liquidity management.

Mr. Reid has 30 years of financial services experience with extensive leadership roles in community banking, retail banking, corporate banking, commercial banking, business banking, real estate finance, capital management and wealth management at Wachovia Corporation and its predecessor, First Union. Mr. Reid held numerous regional leadership positions throughout his career with Wachovia and First Union in Pennsylvania, Delaware, New Jersey, New York, Connecticut, Tennessee and North Carolina.

New Board

The prospective management team will be supported by a new board of directors that includes Austin Adams (Chief Information Officer, JP Morgan Chase, BankOne and First Union); Jerry Licari (national banking practice leader, KPMG LLP); Chan Martin (retired treasurer and senior risk executive, Bank of America); and Jerry Schmitt (former asset/liability committee chairman, First Union). The new board will also include one representative each from The Carlyle Group and Oak Hill Capital Partners, and two FNB United and one Bank of Granite legacy board members.

The Transaction

The merger agreement provides that Bank of Granite shareholders will receive 3.375 shares of FNB's common stock in exchange for each share of Bank of Granite common stock they own immediately prior to completion of the merger.

Completion of the merger and The Carlyle Group and Oak Hill Capital Partners investments are dependent on each other and the satisfactory completion of a number of other conditions including the exchange of FNB United preferred stock held by the U.S. Treasury for FNB United common stock on the terms specified in the merger and investment agreements, receipt of regulatory approvals, the approval of the shareholders of both FNB United and Bank of Granite, FNB United raising $310 million inclusive of The Carlyle Group and Oak Hill Capital Partners investments, the board and management structure referenced in the agreements, receipt of advice that the private placement investments will not impair FNB United's existing net operating loss deferred tax asset, FNB United and Bank of Granite meeting specified financial condition requirements and not having experienced material adverse effects and events, and other customary closing conditions. The U.S. Treasury has issued a letter, dated April 6, 2011, indicating its agreement to exchange FNB United's preferred stock held by the U.S. Treasury for FNB United common stock having a value equal to the terms specified in the merger and investment agreements, subject to the execution of a definitive agreement with the U.S. Treasury, the completion of the capital raise, and the completion of certain other matters.

About FNB United Corp.

BarChart says H-O-L-D...LINK

http://barchart.com/quotes/stocks/GRAN

Hope the volume picks up :)

The swing from .47 to .855 was good enough for me... Out now with nice gains... Looking at WM .. Think larger caps will start to be more of a steady gainer through the year?

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58267946

Watching PCFG for a pop this week..... "the boyz are back in town".

cheers

PS: In case you missed it-- It didn't hammer a swing on the 8th..
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58464867

GRAN making huge swings

Fewer Bank Failures? Chapter 11 Sale Offers a New Way

Source: WSJ 1/6/2011
.
This has huge implications for the troubled banking situation's across the country!

============================================

By ERIC MORATH
The recent sale of a Washington state bank out of Chapter 11 created a new tool that potentially could rescue hundreds of similarly troubled institutions and save the Federal Deposit Insurance Corp. billions of dollars, according to a number of banking experts.

An investment vehicle backed by a Goldman Sachs Group Inc. fund and Oaktree Capital Management LP late last month purchased AmericanWest Bank, of Spokane, Wash., out of bankruptcy from its holding company, without the need for regulators to seize the bank and shore up its deposits.

The deal could open up options to save other banks teetering on the edge of failure, particularly those whose holding companies are saddled with so-called trust-preferred securities, and make it easier for hungry investors to acquire undercapitalized banks.

State banking regulators said the sale, which they believe to be the first transaction of its kind, could have a wide-ranging impact. "We are encouraged to find another way to skin the cat," said Brad Williamson, director of banks for the Washington State Department of Financial Institutions. The sale "allowed the bank to be recapitalized and addressed the TruPS conundrum."

Trust-preferred securities, commonly called TruPS, have weighed down many banks struggling to remain afloat. The securities were issued frequently in the 1990s as a way for bank holding companies to raise capital cheaply and without diluting their shareholders' equity.

However, as the financial crisis took hold, those securities often stood in the way of private investors willing to step in to rescue banks stung by bad loans and faltering real-estate markets. The reason so many bank holding companies, including AmericanWest Bancorp., couldn't persuade investors to come forward was because the ultimate holders of the trust-preferred securities are entitled to payment before any capital infusion can occur.

Trustees representing the debtholders often were unwilling or unable to negotiate a settlement that could allow a bank to be recapitalized without government intervention.

The result: Some banks that could have been rescued were seized and billions of dollars have been drained from the FDIC's insurance fund.

More than 150 banks failed last year, costing the FDIC more than $20 billion. AmericanWest's failure alone would have cost the FDIC $330 million, according to papers filed with the U.S. Bankruptcy Court in Spokane.

Instead, the bankruptcy sale allowed the 58-branch bank, which became insolvent in the first half of last year, to find its way to new owners without government assistance. SKBHC Holding LLC, the Goldman-Oaktree vehicle, paid $6.5 million for AmericanWest and pledged up to $200 million in additional capital.

SKBHC said it was attracted to AmericanWest because the investment vehicle feels the Pacific Northwest economy is poised to rebound and was impressed with the AmericanWest's operation. While AmericanWest was closely watched by regulators, it was never seized, in part because banking executives kept regulators closely informed of their plans to recapitalize.

"We made a strong business case to regulators that this could be a bit of a game changer," said Scott Kisting, SKBHC's chairman and chief executive.

Bankruptcy sales are commonplace in manufacturing and other industries, but they aren't in banking. Typically, bank holding companies file for bankruptcy after their bank is seized.

Mr. Kisting credited former AmericanWest Bank President Patrick Rusnak for developing the idea of using a bankruptcy sale to complete the transaction.

With a Chapter 11 sale, SKBHC acquired the bank free and clear of liens, including amounts owed to the trust-preferred securities holders.

AmericanWest Bancorporation raised capital years ago through the issuance of roughly $40 million in debt through trusts, which was then repackaged into several different collateralized debt obligations that held about $2 billion of securities. Those CDOs, in turn, issued bonds to investors.

That complicated investment structure meant it wasn't possible to trace individual holders of the holding company's debt—making it nearly impossible to negotiate with the debtholders.

"In cases like this, there is simply no one to negotiate with," said Van C. Durrer, an attorney for SKBHC. Durrer is a bankruptcy attorney with Skadden, Arps, Slate, Meagher & Flom.

"It would be very hard to do this transaction out of court and out of receivership," he said.

The sale drew the attention of others in the industry.

"AmericanWest very well could be an example to follow," said Frank Bonaventure, chairman of the financial-institutions group at law firm Ober Kaler.

This isn't to say that waves of holding companies will file for Chapter 11 protection in order to execute sales, he said, but even the threat of bankruptcy could be enough to bring trust-preferred securities trustees to the table for more serious negotiations.

Mr. Williamson, the state regulator, said he hopes that is the case.

"The AmericanWest recap shows that trust-preferred securities holders need to start being a little more flexible," he said.

Mr. Williamson said the outcome of the AmericanWest case was preferable to that of other holding companies weighed down by trust-preferred securities.

For example, when Troubled Asset Relief Program recipient Sterling Savings Bank, also based in Spokane, was recapitalized last year, TruPS holders received full payment while the U.S. Treasury took a significant loss, he said.

With private-equity firms, such as SKBHC, ready to recapitalize troubled banks, Chapter 11 proceedings could open the door to needed investment without government assistance, said banking analyst Brett Rabatin.

Many investors, including affiliates of billionaire Wilbur Ross, have purchased banks after the FDIC became a receiver. Mr. Rabatin, a senior analyst at Sterne, Agee & Leach Inc., said the AmericanWest deal could pave the way for a new model.

"The FDIC is realizing that they don't have to fail more banks," he said. "They can use private equity as a vehicle for institutions that need capital."

Write to Eric Morath at eric.morath@dowjones.com

http://online.wsj.com/article/SB10001424052748703675904576063852045473950.html

GRAN WEEKLY.......Hammer

We gonna TEST $1 in the AM..........We can make a MOVE to $1.50+ with news. Hammer

Makes me think someone wants this thing over a buck badddddddddddd.

POWER ZONE APPROACHING WITH SPEED. Hammer

Where we at BOYS?????????????????? Its GRAN TIME.....Hammer

GRAN FINALLY READY TO GET SOME SEA LEGS.......Hammer

Short Interest: 4.9% INCREASE?

Short Interest (Shares Short)
382,500
Days To Cover (Short Interest Ratio)
6.2
Short Interest - Prior
364,600
Short % Increase / Decrease
4.91

-----------

EOY covering, or.......

missed the early window for GRAN triple bottom...

but .50 will do just fine when/if she go-goes...

...best post re: other equities over here* before mods get upset with "OT" posts ... though I need financing for all this through GRAN so really is OnTopic. ;)

*http://investorshub.advfn.com/boards/board.aspx?board_id=16763

dedicated streamer for NAS under a buck needing compliance ... nice tool for finding them >>>>>>>>>

scan: see hammer place

Cheers

If that's your ALFA- I'm Jealous..........

USA stopped importing ALFAs in '94 and Ive only seen the european versions in pics.. the Coupe here last few years, was really a Massarati.

Some Chatter about FCEL-- HUGE action right at the close...

So, I'm just sitting with some GRAN, CFW, and PCFG waiting for the new year. RZTI may get some action, but not sure now that its PINK

Bought GRAN around Dec 17 when it was on sale-- but could get cheaper tomorrow?

Thanks alfa, all good to consider ... GRAN

may have turned the corner ... reckon lots of folks remember last Dec/Jan ... chart looking nice. Add volume and we'll be a smell'n bacon! ~~~~~~~~~HA~~~~~~~

nice trades ...

2011 -- GOLD ponies, SILVER ponies, Black GOLD oilers, & beaten up banks ... bottom feed off the tax loss sellers.

Love the "compliance" under $1 bottom hangers

Missed the PM thingy ... you can read 'em, but not send 'em?

Take a spin my good man! vvvvv-rooooom >>>> Like my sunglasses? (-8

GRAN Buying time was Dec 17th @ sub .50? Slow day today? Getting ready for Hammer-Time!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Nice ALFA pic- hear they will re-import now that FIAT and Chrysler have merged. Mine was 1981 red spyder... but now they are not true alfa's anymore- Just mongrels w Masserati engines, and Fiat subframes....

CFW? They have not released the news regarding de-listing approvals. Their notice was for no annual meeting in 2009- not for sub $1 pps-- but that notice could be next.. Wondering if buyout offer is in the works? Should be quite a pop in a few days..

Bought 100K ACTC yesterday AM at .138 and sold today at .165 Monster volume-- some thing is up- and guess they want to sell more shares- so looking for another dip to reload....

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58255902

Will Look at EVRN...

My buy order for GRAN @ .46 didn't go off all day... So they may be playing with your mind???????????????

Sorry, don't have PM....Have a good one.

With ya ...

These folks need minimum $1 for compliance! So.... what they gonna do?

Cheers!

Only thing to watch...

www.fdic.gov/

Problem Banks - The FDIC creates reports on problem or troubled banks in the aggregate. We do not make the details of this list publicly available.


SEARCH

www2.fdic.gov/drrip/cs/index.asp

I THINK WE HAVE A BIG FRI. and A BIG START OF THE YEAR. $1+ in a BLINK of an EYE. Hammer

TIC-TOC ... when is...

GRAN ~~~~Hammer Time~~~~

GRAN IS READY TO DO ITS YEARLY JIGGY. Hammer