Every little thing gonna be all right

Posted on October 30, 2006 by grim

From the New Brunswick Home News Tribune:

Amboy bank to cover loan losses
By JASON METHOD

Everything will be all right. Amboy officers said last week that their bank, listed as one of the most profitable in the country, will be able to cover any losses on loans made to embattled real-estate mogul Solomon Dwek and Kara Homes, a major developer that has filed for bankruptcy. Old Bridge-based Amboy said it could maintain its fiscal strength by using reserves set aside for bad loans, profits from the privately held bank and, if necessary, the bank's own cash and other holdings. "Although we've had a couple of bumps in the road, we can weather the storm without any issue at all," Amboy's chief operating officer Stanley J. Koreyva Jr. said. "We're optimistic about the real-estate market. . . . We're optimistic about Amboy." The bank released a letter last week to customers to assure them of the bank's financial strength. But a banking expert who reviewed Amboy's federal regulatory filings for Gannett New Jersey newspapers said Amboy has taken more chances than most banks would by specializing in real estate and approving large amounts to single borrowers. "They have doubled their risk," said Gary Maples, who teaches loan portfolio management at the Graduate School of Banking in Madison, Wis., and is a retired bank president.

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50 Responses to Every little thing gonna be all right

  1. Metroplexual says:
    October 30, 2006 at 6:39 am

    they were paying around 5.8 % in there 1yr cds a few months ago just like WaMu was in September (6%).

  2. anon says:
    October 30, 2006 at 7:41 am

    this sounds like kara ceo before it all fell apart
    i believe there were 2 quotes a month apart

  3. MaxedOutMama says:
    October 30, 2006 at 7:54 am

    When you have to claim optimism for the housing market in a situation like this, your optimism is not all that convincing.

  4. MaxedOutMama says:
    October 30, 2006 at 7:56 am

    Paying high rates for deposits is not generally a sign of great strength. Will Amboy be trying to sell bonds in Europe next?

  5. UnRealtor says:
    October 30, 2006 at 8:56 am

    Don’t let them fool ya, or even try to school ya.

  6. skep-tic says:
    October 30, 2006 at 1:32 pm

    time to switch banks!

  7. skep-tic says:
    October 30, 2006 at 1:40 pm

    “Meanwhile, according to exclusive research conducted by NMN, payment-option ARM and interest-only loan production now accounts for almost 30% of industrywide fundings”

    from Ben Jones’ blog

    sounds like a banking crisis waiting to happen

  8. James Bednar says:
    October 30, 2006 at 1:50 pm

    Was paging through the new issue CDs at Fidelity.com and was surprised to see Amboy listed, right alongside Wamu.

    jb

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