bank run by religious nut cases that loaned money wildly like drunken sailors was closed today:Riverview Community Bank that attracted national media attention several years ago for openly espousing prayer in the workplace
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sailors was closed today:Riverview Community Bank that attracted
national media attention several years ago for openly espousing prayer
in the workplace
http://www.startribune.com/local/65874567.html
Regulators close bank that espoused prayer in workplace
By CHRIS SERRES, Star Tribune
Last update: October 23, 2009 - 7:41 PM
Riverview Community Bank, an Otsego firm that attracted national media
attention several years ago for openly espousing prayer in the
workplace, has been shut down by state regulators.
The six-year-old bank, which has $108 million in assets and branches
in Otsego and Anoka, was an aggressive real estate lender, once
boasting the fourth highest concentration of real estate loans-to-
capital among community banks in the state. The bank was hard hit by
the wave of foreclosures that began hitting Wright County in mid-2007.
The Federal Deposit Insurance Corp., which insures bank deposits, was
named receiver late Friday and has arranged for all of Riverview's
assets and deposits to be sold to Central Bank of Stillwater, which
has been buying up failed banks across the state. The two branches of
Riverview will open Saturday as branches of Central Bank.
Central Bank, which has $430 million in assets, has recently acquired
two failed banks - Mainstreet Bank of Forest Lake and Jennings State
Bank of Spring Grove, Minn.
Riverview is the sixth Minnesota bank to be closed by regulators since
the financial crisis began two years ago, and the 105th bank to be
shut down nationwide since the beginning of the year.
Riverview's closing has been anticipated for months. Losses on loans
backed by real estate drained much of its capital -- the cash and
stock banks keep on hand to absorb future losses. In the second
quarter, three of the bank's key capital ratios fell below minimums
set by federal bank regulators. With the market for new bank capital
all but dried up, many local bankers said it was just a matter of time
before regulators pulled the plug.
The bank and its parent company have been hit with two public
enforcement actions since March. On Oct. 9, Riverview's holding
company, American Eagle Financial Corp. of Otsego, reached an
agreement with the Minneapolis Federal Reserve to cease paying
dividends and to correct violations of law spelled out in a May letter
from the Federal Reserve. The order does not identify what laws were
broken. Mary Kiffmeyer, former Minnesota Secretary of State and
president of American Eagle, signed the agreement with the Fed.
The FDIC and Central Bank have entered into a so-called "loss-share
agreement," in which the federal agency and the bank will share in the
losses on about $75 million of Riverview's assets. The FDIC said it
estimates the cost to its insurance fund will be $20 million.
Riverview was one of six banks shut down nationwide on Friday.
alexy
>bank run by religious nut cases that loaned money wildly like drunken
>sailors was closed today:Riverview Community Bank that attracted
>national media attention several years ago for openly espousing prayer
>in the workplace
>
>http://www.startribune.com/local/65874567.html
>Riverview is the sixth Minnesota bank to be closed by regulators since
>the financial crisis began two years ago,
Minnesota. That figures. They probably think an asset becomes a
liability if it leads to losses. With that level of financial
ignorance, they certainly couldn't run a bank.
--
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