US Century Bank, founded by prominent Republican campaign donors as the housing boom metastasized to consume Florida and destroy common sense, is on the ropes. The bank is the largest welfare recipient in Florida of TARP funds, of which it has not repaid a cent. If not for Tier 1 contributions to its balance sheet by the Federal Reserve, backed by taxpayers, the bank would have been sold off long ago. And if it had been sold off, maybe the toxic politics that its board members helped fuel would have burned off. (Chairman Ramon Rasco, along with fellow US Century board director Jose Cancela, is hosting a fundraiser for US Senator Bill Nelson on June 3.) Its ratio of loans to insiders is off the charts in comparison to similarly sized institutions. Last week it sold an office building for 55 percent of the mortgage value it had foreclosed on; a fire sale as the bank scrambles to raise capital. Nonetheless the FDIC ranks the bank as "well capitalized".
Gretchen Morgenson of The New York Times recently wrote, "...several years after the financial crisis, which was caused in large part by reckless lending and excessive risk taking by major financial institutions, no senior executives have been charged or imprisoned, and a collective government effort has not emerged. This stands in stark contrast to the failure of many savings and loan institutions in the late 1980s. In the wake of that debacle, special government task forces referred 1,100 cases to prosecutors, resulting in more than 800 bank officials going to jail. Among the best-known: Charles H. Keating Jr., of Lincoln Savings and Loan in Arizona, and David Paul, of Centrust Bank in Florida." (April 14, 2011)
A big reason that political candidates fail to address the causes and parties responsible for the vast fraud underlying the economic recession is the fact that business organizations and so-called leaders close ranks around their own. One hand washes the other. The Latin Builders Association, for example. Politicians like Carlos Gimenez and Julio Robaina, running for Miami-Dade Mayor, for example. This shortcoming is one of the reasons that the next economic crash is likely to do for the 21st Century what the Great Depression did for the 20th.
8 comments:
The blog Homesteadishome had a story about US Century foreclosing on some big mortgage in Homestead where an article said that values were down about 72 %
US Century and its lobbyists were some of the biggest boosters of the rape and pillage of Homestead. They should be drawn and quartered.
Well, well. Cancela hosting a fundraiser for Bill Nelson? Cancela is the "spiritual godfather" of Marquito Rubio, so is he crossing party lines? Besides, he's part of the Century conglomerate, and isn't that conglomerate in partnership with Armando Codina? And isn't Armando Codina Jeb Bush's partner? So what the hell is going on? Is Cancela returning to the arms of the Democratic party because he realizes that no matter how bad Obama might be screwing up, the Republicans are doing far worse? Yes, yes, I know Cancela is a registered Democrat, but the soul of a Republican inhabits his body. He's like his buddy's pop, Julio Gonzalez Rebull, Sr., who claims that it is far more attractive to be a registered Democrat in support of Republican causes than to be a registered Republican. Bunch of crooks is what they all are! LOL
EOM - I didn't get the reference to Carlos Gimenez - what did you mean?
Take it as an article of faith that US Century and its insiders cover all their political bases; profit bridges all partisan divides. Or, there is no partisan divide that is to wide to bridge with insider money.
I last posted on USCB in March. The Bank, i mean, firm (Rasco et al) is too well connected to be seized. I wonder if there is a correlation to federal politicans and the Bank. We know Kathy has been bought. But if the Federalis have been bought off too could there be presure not to intervene in DC? Marquito was a heavy beneficiary of their largess. Nelson has an office in the firm's building. Now that Eye on Miami is an angle.
This whole mess requires a special prosecutor to come in. Too bad we dont have that mechanism here. Maybe Anitere Flores can introduce somehting in the legislature since Scott cut funding for La Liga? Nope she was bought off as well when she first ran in 2004. Look who gave her money. Most attorneys were at Rasco et al.
Again, Agnan Khashogi would be proud. Hell, their better because they are out and about trying to move the UBL. Or on the MDX. (Look at the MDX Board and go to the firms web site.) Ahhh...Miami.
As they said, follow the money. If they bought the Feds there is areason why the FDIC has not moved in; for now.
The interesting manipulation here is that US Century seized the property owned by Merco (Homer Meruelo is a principal on, at least, one of the Merco coporate entitites). And what a coincidence, Jose Cancela's corprate entity (Bahia Honda LLC?) is involved with the Meruelo family in a Spanish TV channel, in Los Angeles -- the same Meruelo family where one of their members sold his multi-million mansion to Michelle Kosinski --NBC reporter and a very good "friend" of Cancela, as well -- for about $5 million. Yeah, VERY TYPICAL THAT A NEWS REPORTER BUYS A HOME FOR THAT KIND OF MONEY. Now comes developer Pedro Martin -- Miami hot shot developer who claims to have lost millions in the real estate debacle -- and incoporates Terra Grove Investments in FEBRUARY 2011? And his friends from US Century Bank sell him the Meruelo property? What's the deal in this deal US Century? It appears this might be a humongous manipulation here and if investigated, I would bet money that a few of them could wind up in the slammer. Naturally, there will be no investigation because Kathy is in bed with them. In other words, in Miami, everyone is in bed with everyone else. No wonder this town has become a non-ending orgy! The kind of sport this cozy little group likes to engage in. LOL They are smarter than most; no wonder Cancela is throwing a fund raiser for Bill Nelson! LOL Nothing like re-establishing ties with the White House. Right, Jose? Especially, after the Marquito Rubio love-fest! LOL Better watch out, boy, too many people already have your number.
Hey, commenter above....tell the feds. It seems you have the trail. Copy enough senators that the feds will be forced to pursue it. That might work.
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