Bank Takes a Hit to Earnings on Dwek Loans
The comments from the Rutgers Professor are kind of interesting.
snip...
[Despite the improved financial performance, Vaccaro said the bank's net income would have been $733,000, or about 9 cents a share, if it didn't set aside money in case Dwek's loans go into default.
"They're unsecured in nature, and because they are associated with the entire Dwek issue, we thought it was appropriate to take a 25 percent reserve," Vaccaro said.
One expert said the unsecured loans were curious, particularly since Dwek probably had assets that he could have used as collateral. If the loans were secured, the bank, in the event of a default, would be able to recoup at least part of its money by selling the collateral.
"For me, an unsecured loan is a rare animal, especially when you are a developer and you have all these properties you can secure it with," said Paul Nadler, a retired banking professor from Rutgers University.]
posted by Little_Silvered at 9:29 PM
10 Comments:
ok...this is scary since our money is in PNC. Should we move our funds?
Thanks for the feedback...not! I may be the only one visting this blog. Why bother?
Your question was sort of naive, if not just plain stupid.
PNC has $94 billion of assets. Do you think if the bank has to write off a $25 million loan, which is highly unlikely anyway, it is going to go insolvent?
Well, then your post was stupid. Unless, you take glee in Dwek. Other than that, this blog is slow, has little interest and not much to offer, other than shit we can read in the paper. See ya.
Don't listen to them, Sil. Sometimes no news is no news. Everything moves slower in the summer.
This is a great blog. Please keep up the good work!
-Jamey
PNC guy: If your funds are in MMA, CD, or checking/savings, it's safe up to the first $100k. Besides, PNC is not in danger of insolvency because of a single big default. They're worth more alive than dead to many other financial institutions.
Jamey - Thanks - I was about to bail this blog. The others I visit have more informed participants that don't mind a dumb question once in awhile.
I have a lot of cash (but am not a banker...or realtor). I though maybe the bank was in some sort of trouble I didn't know about.
The person who called my question stupid is rude. I guess I am dumb enough to have saved over 500k in cash and stocks, just not sure where to invest it.
dude, don't mind one ignorant poster. There are a lot of people reading this blog and using it to gather and share relevant info. Congrats to you for collecting $500k in cash! If you're not sure what to do with it, get a solid financial advisor who can help you manage it depending on your age and specific circumstances.
I hope you meant a fee-based financial advisor ;)
Adjmi was part of the investment corporation that made the successful bids for some of the best commercial properties held by Drug-money launderer tied to land bids
Dwek auction adviser did jail time
Posted by the Asbury Park Press on 08/13/06
BY JAMES W. PRADO ROBERTS
STAFF WRITER
Alex Adjmi, the public face behind the investment group that bought $21.8 million worth of Solomon Dwek's properties Tuesday, served time in federal prison for laundering Colombian drug cartel money.
Adjmi was part of the investment corporation that made the successful bids for some of the best commercial properties held by Dwek, the embattled real estate mogul charged in a $50 million bank fraud scheme.
Adjmi spent 44 months in federal prison for laundering bags of cash for drug dealers, according to public records. He was released in October 2000.
I wouldn't worry too much, at least not about their small business cash advances service. Maybe checking. And I would definitely move my money markets!
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