Amboy Bank Should Not Have Been Surprised
If Amboy Bank was surprised, then they really should not be collecting deposits and loaning out other people's money. Real estate prices have been completly detatched from fundamentals since at least 20o4 and there has been plenty of warnings since early 2005 that people and developers were eventually going to have problems making loan payments.
From today's Asbury Park Press
"When Kara Homes filed for bankruptcy this month, Amboy National Bank of Old Bridge was listed as the largest creditor with $58.2 million in loans.
When local real estate mogul Solomon Dwek's $400 million empire was frozen by a judge following charges of bank fraud, Amboy was again the largest creditor — for $49.7 million.
Just as Amboy has been surprised by the loans gone bad, a real estate market in decline could spell financial trouble for other local banks and thrifts that have lent heavily for housing developments and commercial real estate, bank analysts and federal regulators say."
posted by Little_Silvered at 10:20 AM
4 Comments:
why is it that Main stream media didn`t talk about this ?
MONEY WORRIES: Could Kara filing, Dwek case herald financial meltdown?
Alarm bells ringing
Wobbling real estate market sparks fears of banking implosion
Posted by the Asbury Park Press on 10/15/06
BY JASON METHOD
STAFF WRITER
WHY IS THAT NO ONE CAN FIND OUT WHEN PEOPLE WILL GET THEIR HOUSES OR THEIR MONEY????
Good answer. The gears of the bankruptcy court tend to spin very slowly. Also bear in mind that even in the best of times, KH recordkeeping was, uh, spotty at best. "Chinese Fire Drill" comes to mind. That is no exaggeration (in fact it's putting it kindly).
Zudi has been quoted by the mayor of Mt. Arlington as saying construction up there will resume within 30 days. I would imagine this means he expects some kind of funding or that someone else will be completing the project. Or, he's BS'ing again.
What about the Kara attorney that stated that homeowner deposits will be returned? How can he say that...
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