[evolusd]

Alan & davelj are probably right with the ‘greater good’ theory. I’m in the banking business – I should be thankful for whatever bone they throw my way from a job stability standpoint.

However, if these new lax FDIC standards are implemented, banks should be required to disclose the aggregate LTV composition of their CRE portfolio for each property type. At least then investors and depositors can make a sound decision. My guess is SDNB had pretty high LTVs across the board compared to other banks.

Dave – do you really think effective legislation/regulations will be passed to prevent future problems? I’ve been shocked by what I’ve seen so far.

[evolusd]

This irritates me. While it makes sense to keep some ‘performing’ loans from being written down, it ignores the second largest underwriting parameter – LTV.

I relate it to the stated-income loans of the residential boom. “Don’t worry about the borrower’s cash flow ability, the home will be worth more and the Bank will be fine!” Only this time it’s “don’t worry about our collateral position, the cash flow is fine!”

I think the Banks need to face reality about what their loan portfolios are truly made of (both from a cash flow and collateral coverage POV) and reserve accordingly.

Just my 2c…

[evolusd]

This irritates me. While it makes sense to keep some ‘performing’ loans from being written down, it ignores the second largest underwriting parameter – LTV.

I relate it to the stated-income loans of the residential boom. “Don’t worry about the borrower’s cash flow ability, the home will be worth more and the Bank will be fine!” Only this time it’s “don’t worry about our collateral position, the cash flow is fine!”

I think the Banks need to face reality about what their loan portfolios are truly made of (both from a cash flow and collateral coverage POV) and reserve accordingly.

Just my 2c…

[evolusd]

This irritates me. While it makes sense to keep some ‘performing’ loans from being written down, it ignores the second largest underwriting parameter – LTV.

I relate it to the stated-income loans of the residential boom. “Don’t worry about the borrower’s cash flow ability, the home will be worth more and the Bank will be fine!” Only this time it’s “don’t worry about our collateral position, the cash flow is fine!”

I think the Banks need to face reality about what their loan portfolios are truly made of (both from a cash flow and collateral coverage POV) and reserve accordingly.

Just my 2c…

[evolusd]

This irritates me. While it makes sense to keep some ‘performing’ loans from being written down, it ignores the second largest underwriting parameter – LTV.

I relate it to the stated-income loans of the residential boom. “Don’t worry about the borrower’s cash flow ability, the home will be worth more and the Bank will be fine!” Only this time it’s “don’t worry about our collateral position, the cash flow is fine!”

I think the Banks need to face reality about what their loan portfolios are truly made of (both from a cash flow and collateral coverage POV) and reserve accordingly.

Just my 2c…

[evolusd]

This irritates me. While it makes sense to keep some ‘performing’ loans from being written down, it ignores the second largest underwriting parameter – LTV.

I relate it to the stated-income loans of the residential boom. “Don’t worry about the borrower’s cash flow ability, the home will be worth more and the Bank will be fine!” Only this time it’s “don’t worry about our collateral position, the cash flow is fine!”

I think the Banks need to face reality about what their loan portfolios are truly made of (both from a cash flow and collateral coverage POV) and reserve accordingly.

Just my 2c…

[evolusd]

I’m a barney…forgot the link.

[evolusd]

I’m a barney…forgot the link.

[evolusd]

I’m a barney…forgot the link.

[evolusd]

I’m a barney…forgot the link.

[evolusd]

I’m a barney…forgot the link.

[evolusd]

There’s even a shot of La Boheme in North Park…an icon of development failure.

[evolusd]

There’s even a shot of La Boheme in North Park…an icon of development failure.

[evolusd]

There’s even a shot of La Boheme in North Park…an icon of development failure.

[evolusd]

There’s even a shot of La Boheme in North Park…an icon of development failure.

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