We’ve got two heavy hitters from a local bank summoned to Washington today by the FDIC/OCC and readers have been guessing which bank is displaying its patriotism by visiting our nation’s capital just a day before Friday, a day dreaded in bank circles as the day of the week failed banks are shut down by the government.
I am sworn to secrecy, of course, but a couple of readers have guessed that the troubled lending institution might be Patriot National Bank and one even thoughtfully supplied this link to a compliance agreement entered into between the bank and its supervisors. Rumor has it that at least one bank around here received just last week a ‘cease and desist” letter from the OCC, freezing their commercial loan portfolio and otherwise constraining their ability to continue as a going concern. Whether that letter and today’s summons on the carpet are related will be seen shortly. The 22-page document is worth a read, especially the juicy bits about non-performing spec house loans, plans for liquidation, better supervision of suspicious cash transactions, etc. Worth your time if you want to see what a train wreck looks like just before it happens.
Hope you’re wrong…looks like Marcus got out at the right time….he had 90,000 shares of Patriot too after they took over Pinnacle..wonder if he still has those shares. Patriot must have a ton of his stuff still on their books….and they’re not the only small bank in town with a large construction loan portfolio…