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Nearly every man who develops an idea works it up to the point where it looks impossible, and then he gets discouraged. That's not the place to become discouraged.
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Tag Archives: FDIC
Outstanding CRA Rating
California Bank & Trust (CB&T) (www.calbanktrust.com) is pleased to announce that it has again been awarded an outstanding rating from the Federal Deposit Insurance Corporation (FDIC) in an examination that rated the institution’s community reinvestment activities. The examination review, which began in May, was recently completed and the ratings announced.
The Community Reinvestment Act of 1977 states: “Regulated financial institutions are required by law to demonstrate that their deposit facilities serve the convenience and needs of the communities in which they are chartered to do business; the convenience and needs of communities include the need for credit services as well as deposit services; and regulated financial institutions have continuing and affirmative obligation to help meet the credit needs of the local communities in which they are chartered.” Read More
Harris Simmons
As the nation’s credit crisis has continued to make headlines, the United States Department of Treasury has continued to develop new tools to engender confidence and strengthen liquidity in the financial system. A major new element of the government’s response is the Capital Purchase Plan, an element of the Emergency Economic Stabilization Act recently passed by Congress, by which up to $250 billion is being invested in healthy banks that form the backbone of our economy. This new capital is being provided in the form of senior preferred stock, with a coupon rate of 5 percent for the first five years, after which the rate increases to 9 percent. Warrants to purchase common stock at current prices, in an amount equal to 15 percent of the total investment, are also provided to the government. The structure of the program virtually ensures that these taxpayer funds will not constitute a “bailout,” but rather an investment that will be fully repaid by the many banks receiving this investment. Read More
Regulatory Reform
The bloodletting on Wall Street is still in full swing, yet we’ve already begun to hear calls for greater regulation of the financial services industry. Given the magnitude of the crisis, it is likely some regulatory reform will occur. As we go through this process, it’s critical that we keep our wits about us and make decisions based on fact and not emotion. Read More
