Local Bay National Bank is listed as one of the "Next 10 Banks to Fail" according to a report from Investing Answers.
This is the bank started by former Peninsula Bank president Hugh Mohler now in Lutherville, MD. Fruitland City Council president Greg Olinde is listed as a senior VP and there are many local investors, many from the good old boy Greater Salisbury Committee, who are losing tens of thousands of dollars.
"The list of troubled banks maintained by the FDIC still has over 700 names on it (though the list is confidential). The FDIC has more banks on its trouble list than it has manpower to deal with, slowing down the whole process of closing failing institutions. And because the process is slower and the banks are smaller, the public has been lulled into a state of complacency, with many believing that there's nothing to worry about.
Those people are wrong.
If you're a depositor, you may want to stop reading this report and hightail it to the teller's window to withdraw your deposits from these walking dead. For planning purposes, note that the FDIC generally shuts down banks after the close of business on Friday in what has become known in the industry as "Bank Failure Friday."
If you insist on remaining a loyal customer of one of these banks, double-check and triple-check that your accounts have less than the $250,000 FDIC-insured limit."
Bay National Bank
Maryland-based Bay National is currently considered "critically undercapitalized" under FDIC standards. Furthermore, the bank admitted in a filing with the SEC that there's substantial doubt about its ability to continue as a going concern (which is an auditor's term for "this bank is insolvent").
Last week, Bay National also decided to voluntarily delist itself from trading on Nasdaq. It had previously received notice from Nasdaq that the exchange requires listed companies to have positive shareholder equity of at least $2.5 million. With its negative shareholder equity of -$3.6 million, Bay National did not meet that criterion."
Bay National shares were selling for $.40 per share, down from $ 16 at its high. It's too late for investors to run for their money, but if you have deposits there, you better run for yours. The assets of the local Salisbury branch sold to Hebron Savings bank but this has not been finalized yet.
GO HERE for the complete article.
I guess Greg Olinde has been running the bank the same way he has been running Fruitland.. right into the ground.
ReplyDeleteBlowing through money like there's no tomorrow. The bank depositors are covered by FDIC-- but the taxpayers of Fruitland aren't.
Creating high-paid city positions to accommodate friends, having the city attorney do almost everything the inept city manager was supposed to be doing (for a fee, of course-- you should see the bill), refusing to deal with incompetent and insubordinate staff..
The trainwreck has begun.
If you live in Fruitland, you'd better sell and leave while you still can get something for your home.
Or you can just make it a college rental-- that's all Fruitland will be in 10 years (or less).
Did you get permits for that addittion buddy, yeah sure you did.
ReplyDeleteFruitland, Help is on the way!
ReplyDelete