-->Fall 1:
Mr Gresham (02/08/03; 09:58:14MT - usagold.com msg#: 97115)
"SURVIVOR 2003": California bank closure
http://www.bealbank.com/about.html
Who will own the banking system when it's all over?

Here's one takeover (Texas!) bank, backstopping the Frac-, er, Federal Reserve's bank rescue plan. They almost certainly have these solid balance sheet rescuers lined up and ready to go into action, so no bad publicity lingers beyond a weekend -- ANYWHERE.

From Venture to Vulture capitalism in three years. Hey, Schumpeter's creative destruction is alive and well!

I don't think you're going to be able to open a checking account here... ;) Don't gag when you get to the"proprietary algorithms". Maybe Doug Noland will have a field day soon poking into some of these?

(P.S. But don't worry. They really ARE from Texas, for they write in Texican."predominately"?)

"Beal Bank is Texas owned and headquartered in Plano, Texas with branch offices in Dallas, Houston and San Antonio. We are a State Chartered Savings Bank and a member of the FDIC. Beal Bank is one of Texas' largest privately owned financial institutions with over $5.5 billion in assets and over $942.5 million in equity capital.

"Beal Bank is designated as a wholesale bank. Wholesale banks like Beal Bank operate predominately in the secondary markets where loans and debt securities are bought and sold. We do originate some loans, but our direct loan originations approximate just 10% of our assets and earnings. Thus, the vast majority of our business involves purchasing and selling, in the national capital markets, loans and debt securities, which have been originated by others. Our founder and Chairman, Andrew Beal, has a great interest in the field of mathematics and has instilled a philosophy of careful mathematical analysis in our operations. We believe that we are one of only a few banks combining sophisticated mathematical modeling with the latest knowledge in behavioral finance and game theory to accurately quantify and price risk. We have developed novel, unique, sophisticated and proprietary algorithms that provide unparalleled success in loan and debt securities pricing decisions. Our proprietary computer systems allow us to rapidly process large loan pools and individual loans with unusual characteristics. We are a leader in large unique transactions in the secondary markets.

"Our disciplined and analytical approach to credit transactions is demonstrated through our record of only experiencing one foreclosure on all loans we originated from March 1988 through June 2001 (a home loan that resulted in a nominal loan loss).

"Beal Bank was ranked number ONE in the entire nation among all FDIC insured financial institutions by The American Banker publication, for return on equity over a five-year period ending December 31, 1999.

"Certificates of Deposit investors from all over the nation have responded to our attractive interest rates and have been an important part of our success. Our financial strength, combined with FDIC insurance, provides our customers with high returns on safe, sound investments. Come grow with us, via the Internet."





Fall 2

ElGordo (02/08/03; 10:47:47MT - usagold.com msg#: 97121)
Another bank bites the dust
Debt risk forces bank closure

Statesman Journal
February 8, 2003


BEAVERTON — Federal authorities have revoked lending authority for a Beaverton-based bank that processes credit cards for clothing and household goods retailers Eddie Bauer, Newport News and the Spiegel Catalog.

Under a cease-and-desist order, First Consumer National Bank must dissolve itself as a bank, losing its lending authority, after an audit of its parent company found risky levels of debt.

The 14-year-old company founded in Beaverton will be forced to shutter a big chunk of its headquarters and an Albany call center if it cannot find a buyer. The bank employs about 1,200 people in Oregon.

Auditor KPMG filed a letter Tuesday with the Securities and Exchange Commission, saying parent company Spiegel Group, based in Downers Grove, Ill., had failed to comply with its debt agreements or re-negotiate its debt.

Spiegel’s chief financial officer resigned Wednesday.

First Consumers National Bank manages MasterCard and Visa accounts nationwide, and retail credit cards for Spiegel Group holdings, which includes Eddie Bauer and the others.

At the end of 2001, the bank’s credit card customers had $1.3 billion in outstanding balances and its retail credit card holders had $2.3 billion.
________________
This just broke a couple hours ago.