MUST READ: Obama Admin Collapses And Takes Over Bank With A 99.66% Good Loan Rate
This is a must read. Click on the link at the bottom and see the whole story. Basically, the Obama administration forced this bank to rate most of its loans as toxic, forcing it into a crisis where they could take it over. This bank was doing fine with 99.66% of its loans being paid on time, until they were destroyed and taken by Obama. This is pure and unadulterated communism.
Federal regulators seized Charter Bank in New Mexico this week as its capitalization fell below requirements, making it the latest of scores of banks to have failed in the economic crisis. However, the Albuquerque Journal reports that Charter faced a very low default rate on residential loans and no commercial failures, either — until the Office of Thrift Supervision, its regulator, demanded that Charter increase its declared risk fivefold (hat tip HA reader Super5):
Federal authorities on Friday closed Charter Bank, a closely held, family-run financial institution known for its financing of low-income housing in New Mexico and for the philanthropy of its owners. …
Last fall, Office of Thrift Supervision examiners, responding to the national collapse of real estate development, ordered Charter to increase its allowance for loan losses from $10.8 million to $55.4 million, even though Charter had no delinquent commercial construction loans and only .34 percent of the loans in its commercial real estate portfolio were behind on their payments. That order reduced the level of capital Charter had on its books.
Last Wednesday, OTS ordered Charter to find new capital as a buffer against insolvency or face closure.
Charter had hoped to find a buyer, but none appeared. The owners’ stake in the company was wiped out by the forced closure.