This blog is the only place that readers curious how Miami operates can see the connections to the insider piggy bank, to be known only a little while longer as US Century Bank. The board of directors of US Century, led by founder Sergio Pino and Ramon Rasco, were the local power brokers who substantially helped transform local government from serving the needs of taxpayers to serving zoning and permitting to convert farmland and wetlands into crappy platted subdivisions in south and west Dade. The politics in South Florida, underlying the housing boom and bust, were etched into the landscape by the power brokers, gamblers, and land speculators who used US Century Bank as their crown and scepter. By industry metrics-- including loans to insiders as a percentage of total loans-- the bank should have been seized by regulators long ago. If the Tea Partiers want to find places to attach accountability to the economic and fiscal crisis, then they might start with the local bankers and they might find that politicians they support-- like Marco Rubio-- have stood by US Century Bank for many, many years.
Today, we have a hint that the theatrics at US Century are all tumbling down: yesterday the FDIC slapped a consent order on the bank, which is preliminary to removing the bank board and closing the operation down. If I were an "outside investor", I wouldn't invest a cent in its toxic legacy or assets. Check out the EOM archive to read how we have been tracking the US Century debacle: it is a more accurate "economic time machine" than you will find in the "60 metrics" glued together by The Miami Herald.
12 comments:
Is there any way that the investors who lose money can claw back earnings from the directors of US Century?
I don't know why the FDIC didn't shut it down already. It's been on life support longer than most (I'm guessing the GOP helped a bit).
As a Fed Taxpayer, to the above, I think the US Gov't should claw back from the directors the TARP funds first.
Any investor looking at their financials and still investing deserves to lose what they invested, unless there was fraud in what they disclosed to the investor - then, after the US gets OUR money back, they should definitely continue to claw back to the BoD.
The sooner this slush fund for insiders, which led to the destruction of so much, close - the better.
And, believe me, I'm being kind in this post.
I'm trying to find the consent order from the FDIC, roaming from page to page, I cannot find it. Do you know how I can or can you post a link to it?
Last anon, per your request. It appears the FDIC waits until the end of the month to post all enforcement orders and decisions it released for that month - does anyone know why? Nothing posted for July yet. It's not a very transparent practice.
http://www.fdic.gov/bank/individual/enforcement/2011-06-003.pdf
http://www.fdic.gov/bank/individual/enforcement/neworders.html
The overwhelming public disgust with Washington right now ties back to the campaign finance practices exploited by insiders, like the directors of US Century Bank. The absence of accountability -- like for those mistakes perpetrated by the Latin Builders Association in the name of "the free market", or, Associated Industries killing Amendment 4 -- these are just the miniature version of what is killing American democracy. This is what China thinks of its main supplier of investments: rotten from top to bottom. As soon as China has a better choice, we will be cut loose; our financing costs will soar and it will be every man and woman for himself and herself. That's the game plan btw that the Cheney / Bush White House already put in place. The seeds of chaos were planted by both political parties long ago; failing to put common sense campaign finance laws in place and leaving it to the Bush Supreme Court to enforce. Too bad, for us.
And now we have a republican congress that fights against banking regulations and the new consumer protection agency. Elizabeth Warren deserves a medal not the door.
Does anyone know if Rolando Delgado is related to Willy Delgado?
U.S. Century Bank sells Coral Gables apartments for 37% off
South Florida Business Journal - by Brian Bandell
Date: Friday, July 22, 2011, 12:31pm EDT
Related: Commercial Real Estate
U.S. Century Bank has sold a Coral Gables apartment building for a 37 percent discount to the mortgage it used to foreclose on the property.
The Doral-based bank seized the eight-unit building at 2524 LeJeune Road from Valencia Investors after foreclosing on a $4.6 million mortgage. The bank then sold it for $2.9 million to Arc Gables, a Pinecrest-based company managed by Rolando Delgado Jr.
Arc Gables secured a $2 million mortgage from Kireland General Investments.
The previously owner hoped to build an office on the site, but the city of Coral Gables rejected its application. Valencia Investors bought the site for $6.1 million in 2005 – less than half of its recent price.
Here's the consent order that was posted to the FDIC's website. It was made public yesterday.
https://docs.google.com/viewer?url=http://www.fdic.gov/bank/individual/enforcement/2011-06-003.pdf&pli=1
It is very heavy, moreso than the average. It criticizes the bank for insider transactions, violations of law, and ethical lapses. Furthermore, it hits them on Bank Secrecy Act violations and excessive loan concentrations. It was also highly critical of management and the board.
I just read the consent order. Wow, the FDIC has tied Century in a knot; no more loans to board members or family or partners, ethics training, a new board with real banking experience, and so much more. Good bye Baretto. I am a little surprised the FDIC did not order a sale/takeover but the requirements are so strict that it will be a new bank. Too bad the FDIC did not do this to Losner's bank and his board of farmers. My hat's off to Obama for finally going after bad banks which Bush would not do.
A lot of people have been waiting for this moment, but we'll have to see what really happens. The Pino-Cancela-Barreto crowd have shown --on numerous times -- that they are able and willing to BUY anything and anyone!
I truly hope these insiders are forced pay every dime back or go to jail (yes, I have dreams). But, it's still so curious as to why they didn't shut them down.
Just read it. We will see some interesting details as they have to release reports in 60 or 90 days. Hope they are public.
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