Corus Bankshares Inc. (fka CORSQ)

[eyeownu]

http://philly.citybizlist.com/yourcitybiznews/detail.aspx?id=69007
very good info.

At December 31, 2009, 33 of the 38 pooled TruPS and two of the nine single-issue TruPS in our portfolio had below-investment-grade credit ratings from either Fitch Ratings or Moody's Investors Service.

The irony for Wilmington Trust is that they invested in a pool of TRuPs which are in fact usually other smaller community banks. In a way, Wilmington bet on the health of a diversified pool of community banks. The underlying collateral (those banks) are now deferring or being taken over by the FDIC. So, even if a regional has a decent loan portfolio (residential and commercial), a credit (or equity) investor could still have hidden exposure via TRuP pools. Read those 10-K/10-Qs carefully.

Interestingly, the Friday before the release of the bank's 10-K, S&P lowered the bank's credit rating (affecting $809MM of debt) to BB-plus from BBB-minus to reflect the large increase in nonperforming assets in the last quarter of 2009. This makes Wilmington the first crossover of the year. And me without a party hat.


could there be other plays out their like CORS? HRZB possibly? NO Q either. :O

EDIT: EXTREMELY LOW FLOAT TOO. DOUBLE WAMMY