I had an interesting call from a local banker friend yesterday. He asked me to come over to their newly remodeled bank on the downtown square, to take a look...
He introduced me to their executive vice-president who had previously owned a bank that was subjected to the same OCC unbalanced regulatory scrutiny that United Western went through, back in 2009..., that ultimately resulted in UWB's closure and takeover in 2010...
He simply and voluntarily, recounted his experience with OCC's biased and unreasonable analysis and scrutiny on their loan portfolio, having inappropriately categorizing a large section of their loans as "questionable", and therefore, subject to degrading their capital base.
Since he had priorly been a State and Federal Bank Examiner for many years, he was able, with his Board of Directors, to establish the credibility and soundness of those loans, and thereby thwart the OCC's attempt to overtake their bank. He went on to say that their bank was very profitable, and continued to prosper through 2013, when it was sold...
Once again, we see the inappropriate takeover "pattern" by the FDIC, and Office of the Comptroller of the Currency in their haste to restructure and bolster the banking industry in the aftermath of the 2008 financial crisis...
One bad apple,does not necessarily spoil the whole basket...
