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I'm with what I think is the majority of Americans who instinctively looked at the $700 billion taxpayer bailout of the nation's largest banks as nothing more than cronyism and a bailout of Wall Street - main street be damned.
And it's not working. The markets keep falling and that's what they'll continue to do. Stocks end day way down amid global recession fears.
Let them collapse and let those who took out mortgages and installment loans and credit cards they knew they couldn't repay sink or swim on their own.
The bailout is not only the biggest financial fraud ever perpertrated on the America taxpayer, it's the biggest step toward Socialism this nation has ever taken.
And I said the first step we have to take is vote out every incumbent, every election. I've caught some flack for that.
What do you think?
Source:Losses at Eastern Financial Florida Credit Union swelled in the third quarter as delinquent loans grew and its capital base continued to erode.
The Miramar-based credit union lost $18.2 million in the third quarter, compared with a loss of $11.3 million in the second quarter, according to its National Credit Union Administration (NCUA) filing.
South Florida's largest credit unit has lost nearly $35 million in the first nine months of this year, compared with a $4.3 million profit for the same period in 2007.
In a measure that the NCUA considers key to a credit union’s financial health, Eastern Financial’s ratio of net worth to total assets fell to 6.35 percent in the third quarter, from 7.48 percent in the second quarter. That means the NCUA downgraded its classification of Eastern Financial from well capitalized to adequately capitalized. A credit union with a ratio below 6 percent is considered undercapitalized by the NCUA.
Since credit unions are member-owned, they can’t issue stock to raise money or participate in the U.S. Department of the Treasury’s capital-boosting program, said Karen Dorway, president of Coral Gables-based Bauer Financial, which gave Eastern Financial a “zero stars” rating based on its second quarter numbers.
“The lower capitalization ratings make the situation more challenging,” Dorway said.
Credit unions depend on operations and their members for capital and liquidity. But, the value of member shares and deposits at Eastern Financial fell to $1.44 billion as of Sept. 30, down from $1.56 billion in the second quarter.
The NCUA insures credit union deposits up to $250,000.
Troubled loans were at the heart of the problem for Eastern Financial, which is searching for a permanent CEO. It took a nearly $10.3 million provision to reserve for future loan losses in the third quarter. The credit union charged off $12.1 million during the quarter due to bad loans.
Eastern Financial had $78.7 million in delinquent loans – defined as 60 or more days past due – as of Sept. 30, representing 5.65 percent of its loan portfolio. That’s up from $67.3 million, or 4.64 percent of its portfolio, on June 30.
The credit union’s reserve for loan loss allowance of $23.4 million covered 29.7 percent of its delinquent loans in the third quarter. Eastern Financial also had nearly $67.1 million in equity capital, which fell sharply from nearly $150 million over the past 12 months.
While many of its problem loans were in real estate, some of the credit union’s bad debt extended to autos. Of the $6.1 million in repossessed property Eastern Financial had as of Sept. 30, autos accounted for $5.1 million. The credit union repossessed nearly $2.6 million worth of autos in the third quarter alone.
“Autos are a difficult market and repossessions are up across the board,” said Mark Holmes, Eastern Financial’s vice president of marketing and communications.
He said Eastern Financial would deal with its financial challenges by "engaging in a comprehensive plan for expense control and capital restoration." He added that the company "fully expects to see positive results going forward."
Despite its difficulties, Eastern Financial’s assets increased to nearly $1.82 billion in the third quarter, up from $1.79 billion in the second quarter.
However, higher assets aren’t necessarily good when a credit union is low on cash because it lowers its capitalization ratings further, Dorway said.
http://www.bizjournals.com/southflorida