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  • fedmovesrule fedmovesrule Jan 6, 2011 8:57 AM Flag

    continuing viability of CBC??

    this bank was built on the model of establishing community banks throughout the high growth areas of the USA to offset the lack of a viable growth market in the Michigan market. It is now clear that this plan failed, whether it was bad management or just the laws of unintented consequences really doesn't matter.
    However with the mandate of the FDIC to sell off the community bank structure they built which will result in only in the best banks being sold saddling them with the worst performing community banks and their continuing loan problems what can this bank do to survive with only the Miohigan market and dregs of it's former community bank structure?

    Any thoughts?

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    • I think somebody with some very big clout disagrees with you. JMHO.

    • from what i understand CBC allowed these "community Banks" to keep there same staff . IMHO, they need to shake up that structure at each branch, it was these people{and this archaic structure} that aided heavily in there demise.
      they certainly do not need the salaries and work ethic[or lack of}that they have been receiving. A "TEAM" approach @ each bank. not a President, but a team of "community lenders" that understands there neighborhoods.....all of them. not ONE person approving a loan, instead three each with a different background in the community. the pay structure of ALL salaried bank employees should be based on performance....not title.

      CBC will survive, but it needs to change the rules of the old game "Business as usual" Every other major industry has had to restructure. Reinvent then Repeat.

    • You are correct in that the value of the remaining bank franchise will be significantly less after selling off good banks.

      It is now however all about survival and shareholders are very close to losing everything.

      There is no alternative to selling off the good banks and converting the preferred to common at this time. Yes they could have done some things earlier on but it is too late now.

      Reid may have been careless and excessively compensated but he is doing what has to be done to protect his and our investment in the company.