There is a whole nation of consumers anxiously clamping shut their wallets and pocketbooks and taking in news of an economic "recovery" with anger mixed with disdain. This recession-- if that description holds-- is unparalleled in living memory except for the Depression; a point in time only available for senior citizens. Most believe it is not over by a long shot. But venting at the Obama White House or the Democratic Congress is as misplaced as trust by consumers during the boom that the average home could stand as a speculative asset. If citizens want to lash out, better to aim where the speculation began: corporate behavior where Wall Street greed meshed with ambitions of local lobbyists and politicians; all gears in a machine that used regulations as fuel and burned a hole straight through your wallets and pocketbooks.
For the most part, this was a Republican enterprise. It was founded in the idea that the self-interest of business executives would do a better job of protecting free markets than regulations. To be fair, Democrats in the Clinton administration bowed to the pressure from the right; on Wall Street, in Florida and in the wild, wild West. We see, today, how poorly this plan turned out.
US Century Bank is the homegrown lobbying force, big campaign contributors to Republican candidates and causes, whose board of directors includes top speculators in suburban sprawl. Sprawl-- that is to say, production housing in ring suburbs produced by large corporations like Lennar and the supply chain of the Latin Builders Association, the South Florida Builders, and the National Association of Homebuilders-- was advertised as "what the market wants". It enforced this hegemony through local political campaigns. Its champions, like Natacha Seijas, Pepe Diaz, and Joe Martinez, remain unscathed in permanent incumbencies at County Hall. The shareholders of US Century Bank and other local developers grew very wealthy during the housing boom, contributing to every effort to knock down barriers to growth: regulations like the Urban Development Boundary and local enforcement of environmental rules related to wetlands, rock mining, and roads like Krome Avenue, the western edge of Miami-Dade.
It turns out that sprawl wasn't at all what the market wanted. The naked economic pain that has put fully half of all South Florida home mortgages underwater delivered profits during the boom in predictable, large lumps based on marrying financial derivatives to speculative fever. There was no way to stop it. (Former top Bush fund raiser, developer Al Hoffman famously told the Washington Post of suburban sprawl, "It is an unstoppable force!") Civic activists, rules and regulations: all were steamrollered by activities of the banks and homebuilders that passed as "free enterprise" and the exercise of democracy.
The key organizers of US Century Bank have withdrawn from public view. The lobbyist corps has whittled down, too, by the recession. But politics goes on. Accepting bailout money from US taxpayers is a key point of contention separating Republican challengers for US Senate vacated by Mel Martinez: Miami-Dade's Marco Rubio, former House Speaker, and Gov. Charlie Crist. News that US Century Bank has recently accepted $50 million in "fresh capital" must trouble Rubio, whose contributors include Century Directors Jose Cancela and Sergio Pino. Director Rodney Barretto supports Charlie Crist who supported and signed into law measures that deeply push Florida further into the pockets of land speculators. Candidate Rubio must wonder; what does a local boy have to do to cut a break with the development industry he served so well as House Speaker, carrying the torch?
The problem with the political platform that wraps US Century Bank with the fortunes of Florida's Growth Machine is that the way out of this economic mess is the same way in. After two years of a horrendous economy, consumers and voters both should know the difference.
Posted on Sat, Aug. 08, 2009
Bank gets TARP funds
BY MARTHA BRANNIGAN
mbrannigan@MiamiHerald.com
U.S. Century Bank received $50.2 million in fresh capital from the U.S. Treasury's TARP program Friday, positioning the Doral-based commercial bank to expand its lending to local businesses. ``This additional capital will enable us to maintain our strong capital position, continue our course of profitable growth and meet the loan demand from quality business borrowers in our community,'' Octavio Hernández, vice chairman, president and CEO, said in a statement.
Century said its TARP application was approved in January, but the bank, which already had the financial muscle to be termed ``well capitalized,'' wanted to evaluate whether to accept the federal government's investment.
``We wanted to study it very diligently, because it does come with restrictions,'' said Sam Milne, U.S. Century's first executive vice president and chief financial officer.
The bank's leadership decided to embrace the infusion under TARP, the federal government's Troubled Asset Relief Program.
``It gives us an opportunity to grow the bank and continue to lend,'' Milne said. ``Last quarter, loans grew by more than $110 million.''
Milne said the bank had to obtain shareholder approval in late May to amend its articles of incorporation to permit it to issue preferred stock, the form of the federal government's investment. The board of directors gave the final go-ahead at its last board meeting in mid-July, Milne said.
``This gives them a war chest to do a lot of things,'' said Ken Thomas, an independent Miami-based bank analyst.
``They can continue to do a lot of lending. So many banks today aren't lending.''
U.S. Century was founded in 2002 by a group of Miami businessmen, including Sergio Pino, president of Century Homebuilders, who is on its board.
The bank, which has assets of $1.8 billion, has 24 branches and expects to open another in Doral before year end.
It posted earnings of $110,000 for the second quarter and $195,000 for the six months.
Nonperforming loans were 6.32 percent of total loans on June 30. ``We're doing better than most banks,'' Milne said.
``We still have more [troubled loans] than we want.''
© 2009 Miami Herald Media Company. All Rights Reserved.
http://www.miamiherald.com
10 comments:
Holy cow, my tax dollars going to further erode any quality of life left in Miami-Dade. These hustlers should be tarred and feathered, not rewarded with tax dollars. I am sickened!
Hey, what's the deal? These are the same people involved in all the Krome Avenue housing plans.... Hmmm.
Read the archives.
Didn't Jose Cancela go bankrupt a few years ago? Quite a crew of developers, lobbyists, and connected people who have access to all the elected officials.
PINO, GUERRA, BARRETO, HERRAN, RASCO??? MY GOD OBAMA, MAN, WATCH WHERE YOU ARE PUTTING FED FUNDS!
And, of course, the Property Appraisers office is being held hostage - beholden to these guys to make sure their "assets" look good on the books and not showing the actual sales of property in Miami Dade County. Colonial gets taken over and these guys get a bail out? How screwed up is our financial system? I want to puke just reading these names. It's a who's who of urban sprawl and part of the problem that collapsed our system! I want to protest my tax dollars being used to "help" these sub humans who'd rather destroy our eco system for a few bucks, then do the right thing and try some infill development! This is where I want to use a whole sentance of curse words but will refrain.
Someone enlighten me. Is the fact that they are taking federal money a sign that they are in trouble or are they just being opportunistic?
I agree with above comments. Those names are all associated with urban sprawl.
I just love how when you google these characters this great blog comes up in the first few results. Keep up the great work!
The below article shows just how crooked our Florida legislators, taking a paid vacation....on our dime. Although this trip was disguised as some sort of humanitarian trip, it was actually a taxpayer paid "junket" on the back of hard working people. The is absolutely NOTHING these local legislators can do to help the people in Taiwan. They have no power there, took zero resources, and possess no authority. They simply used the typhoon as an excuse to travel clearly across the world for a free vacation at out expense. They should be ashamed.....all the crooks who carelessly waste the public's money should be put in jail.
Flooding effects of Typhoon Morakot on Taiwan
Last week I reported on a small group of Delegation Members who recently visited Taiwan to meet and exchange ideas with Taiwanese government officials. As many of you may know, earlier this month the Philippines, Taiwan and portions of China were struck by a devastating typhoon.
Below is the text of a letter sent by Representative Carlos Lopez-Cantera to Miguel L.J. Tsao, Director General of the Taipei Economic and Cultural Office in Miami.
“On behalf of the members of the Florida House of Representatives who visited Taiwan, we would like to express our sincerest sympathies during these difficult times. Our thoughts and prayers go out to the people of Taiwan as they seek to rebuild in the wake of Typhoon Morakot.
Living in Florida, we understand all too well the devastation that results from such a natural disaster. However, in this time of uncertainty and tragedy our hearts are filled with hope for the people of Taiwan. Having experienced firsthand the beauty and resiliency of your Country, we are confident that it will make a full and speedy recovery.
Please know that in these trying times you have our continued support and friendship. If we may be of assistance in any way, do not hesitate to contact our offices.”
The members of the Delegation and the Florida House of Representatives who have recently visited Taiwan are Carlos Lopez- Cantera, Esteban Bovo, Ronald Brisé, Denise Grimsley, Oscar Braynon II, and Erik Fresen.
Hey, last anonymous, Oscar Braynon II was our Beauty Contest winner - Best Looking Elected Official in Miami Dade! And Erk Fresen was a distant runner-up. We only pick the best!
Demand that the officials prosecute Lennar and the supply chain of the Latin Builders Association, the South Florida Builders, and the National Association of Homebuilders-- was advertised as "what the market wants". It enforced this hegemony through local political campaigns. Slimebags such as Natacha Seijas, Pepe Diaz, and Joe Martinez SHOULD BE DEPORTED.
SEAL THE BORDERS. DEPORT THE ILLEGAL INVADER BREEDERS.
NO MORE CORRUPT FANAGLING!!!
An excellent comment, above, about the failure of banking regulators to require all banks to mark to market their toxic "assets", except according to some unnamed standard where banks are just too worm-ridden to last another day. I would run, not walk, away from US Century Bank except that the Fed has guaranteed depositors. So depositors are safe, and so are the US Century shareholders: wouldn't you like to know what deals have been cut with other banks that hold the debt of their officers and limited partners. It's all a shell game.
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