TierOne did not admit wrongdoing, but the Office of Thrift Supervision said its regulators believe the bank engaged in unsafe and unsound practices that violated regulations.
I honestly believe the CEO should be removed..... period. GL
I work about 1 block from the main branch of TierOne in downtown Lincoln. There is NO line of people getting their money out. TierOne will be fine, and you can QUOTE ME, as saying this bank will be FINE. I am loading up on shares while this is dirt-friggin-cheap.
Volume is huge today...Let's hope those Nebraskans aren't causing a run on the bank. If a bank like CORS has survived all this time, TONE should be okay. The problem is that it can get beyond their control.
TARP is aimed at the "best banks" because of the reason you stated...give the money to mediocre banks and they will just horde it to try and survive...they want them to lend the money...not that there are many good banks out there right now anyways..crap.
This bank does have income. And actually their income has not degraded that severly in respect to past performance. What has crippled them is the NPL's and the provisions taken against them. Nevada has been a dead skunk strung around their neck and until that area of the balance sheet is resolved, TONE will suffer alot of uncertainty.
I had posted a few weeks ago about being prepared for the government to step in soon concerning the housing market. This is still in the preparation stages and the fed has rightfully flagged the idea again of purchasing or setting up a separate holding institution for those "toxic assets" of which the Nevada holdings could certainly qualify.
WHY HAVE THE BANKS NOT BEEN LENDING EVEN THOUGH THEY ARE RECEIVING GOVERNMENT FUNDING??? One big reason is they are still in survival mode. They are still taking tremendous losses in writedowns and end up HAVING to use the federal funding just to try to remain solvent and keep surviving. Until the fed can effectively nullify the core source of the degradation (TOXIC ASSETS), the banking institutions in general have no choice but to hoard to cover provisions on NPLs until the final and terminal bottom is achieved. GL
I agree. It is time for a change. I am not going to rub salt in the wound but I will refer you all to my Dec 31 2008 post and my 2009 prediction. I think the danger here is the errosion of their deposit base. I can't help but think that there will be depositors moving money.
This bank was headed for trouble for years and now it is playing out. If I was still a shareholder I would ask myself if the people that created this problem are the ones you want to try and correct it. You fire a head coach, you vote out a corrupt politician. What do you do with a CEO that ruins your share value?