Discuss Detroit DISCUSS DETROIT! Home Federal Bank to close --- unless you buy it. Previous Next
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Ocean2026
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Username: Ocean2026

Post Number: 184
Registered: 11-2008
Posted on Tuesday, March 24, 2009 - 3:37 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

http://www.crainsdetroit.com/a rticle/20090322/FREE/303229969

Its core capital ratio to total assets has fallen below 4% ( 3.87%) and now the FDIC says sell before April 15th.

It can't cost much because its not worth much- Just get everyone on this site to throw in $100 and then take over. It might really be fun and perhaps we could help people needing loans or having trouble with payments. Adequately capitalized it could probably by other area loans at pennies on the dollar and help those people keep their houses and still make a nice eventual profit- but screening and monitoring would be difficult.

The big negative on all this is that the FDIC is relying on Dec 31, 2008 numbers. Banks report quarterly and the March 31st figures will almost certainly show a big loss.

I like the idea of a bank that REALLY IS COMMUNITY OWNED- not just by a few rich people, but with lots of local shareholders - LOTS of em. That would help the bank if people put their savings there and it would also help the community.

Uh Oh I have to go speak to City Council here in Rockport TX in 20 min and I'm hardly dressed -daydreaming about what could be in Detroit... (I'm president of the bar association and some councilmembers wanted my to back them and say why they ought to appoint a licensed atty for municipal judge as they usually do not)
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Sharmaal
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Username: Sharmaal

Post Number: 871
Registered: 09-2004
Posted on Tuesday, March 24, 2009 - 3:40 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

"I like the idea of a bank that REALLY IS COMMUNITY OWNED- not just by a few rich people, but with lots of local shareholders"

It's called a Credit Union.
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Ocean2026
Member
Username: Ocean2026

Post Number: 185
Registered: 11-2008
Posted on Tuesday, March 24, 2009 - 4:59 pm: Edit PostDelete PostMove Post (Moderator/Admin Only)

true but credit unions are usually for a certain business not an entire city. There's no reason that if the shares were $8 or so, that many people in Detroit could buy some. After all that's more expensive than Citibank, or Bank of America.


Besides if the community is served there's nothing wrong with a little profit for the shareholders - who would be the community anyway.

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