Monday, March 15, 2010

Standard-Examiner: "Bank Failure? Bad Loans? No News Here; Move Along"

As always, in and around Emerald City, supreme misplaced confidence abounds

The Standard-Examiner carries another Centennial Bank closure story this morning, for the first time explicitly drilling down to the Centennial Bank/Ogden River Project connection. As always, in and around Emerald City, supreme confidence abounds. "There's no news here," the usual claque of municipal movers and shakers admonish us. "Move along," they say, according to The Standard Examiner.
Spokesman: Closure should not affect Ogden River Project
We think that guy flatlander gets it just about right however, with this savvy comment, which we shamelessly rip from beneath today's above-linked SE story:
Confident statements no longer breed confidence....
A spokesman for Ogden Riverfront Development is confident Centennial's collapse will not impede the River Project.
A spokesman for Gadi Lesham is similary confident that the bank's collapse will not adversely affect the River Project.
John "Pureheart" Patterson, Mayor Godfrey's Chief Administrative Officer, is also confident the River Project will not suffer from the bank's collapse.
Of course, the Centennial board was confident the bank would be made sound by a merger right up until the FDIC walked in the door and closed it.
And Mister Patterson was confident in 2002 that the River Project would be largely completed by about 2005 or 2006. It wasn't.
And the Mayor was confident that private donors were ready, willing and eager to fund the downtown year round outdoor ice climbing tower. They weren't.
And the owners of White Star Line were confident the Titanic was unsinkable.
Words are cheap. Whether the bank's collapse will adversely affect the at the moment largely moribund River Project remains to be seen. I hope it will not. Be we'll have to wait and see how it all plays out. [Emphasis added].
We couldn't have phrased it better ourself.

In fact, be sure to check our lower comments section, where the real story is already starting to "play out, and unfold."


althepal said...

It'll be hilarious when the FDIC orders up new appraisals on the 31 properties securing the $3 million in Centennial Bank loans. I guarantee you they'll be shocked.

hose nose said...

Each of those properties worth $96,774 each? I believe you are correct Al. The FDIC will be shocked.

old time bank examiner said...

As an old time bank examiner I smell blood here -

The obvious questions are how many dollars did a property owner get and how many did Gadi Lesham walk away with?

Biker Babe said...

Why would the bank closure affect the Ogden River Project? Nothing else has:

Not project contracts
Not development agreements
Not enforcement codes
Not property tax enforcement laws

Oops - I forgot:

Arsonists Have affected the River Project.


oldtimer said...

One of the Bank's Directors is quoted in today's Standard that he was not aware of the Bank's loans to the Ogden River Project.

Who on earth did he think borowed $3 million dollars on Ogden real estate - no wonder the Bank went down--

Mrs. Oldtimer said...

One of the Bank's Board members is quoted in today's Standard as saying that he was not aware of loans to the Ogden Riverfront Project--

If I had just lost funds or stock in the Centennial Bank I would be heading to my lawyer to sue one or more of the directors for failing to fulfill their duty as a Director of the bank.

Ah'm Confused said...

Wasn't former Ogden Economic Development Department Director Scott Waterfall a Centennial Bank Board Member?

Wasn't former Centennial Bank Board Member Scott Waterfall an Ogden Economic Development Department Director?

Oh My!

The plot sickens.

Ah'm confused.

blackrulon said...

Off topic but I am curious. A story in todays (March 15th) SL Tribune mentions that Ogden has 5 lobbyists working for them. Who are they, how much are they costing, what are they working towards, are they working at cross purposes and who do they report to? Among the cities listed Sandy had the most with 13 but Ogden was second with 5. Salt lake had 4 lobbyists employed for them. What did they hope to accomplish and what did they accomplish?

RudiZink said...

Here's the story with most "lobbyists," Blackrulon:

Cities send out bags of cash, the lobbyists rake 10-20% off the top, and what's left is distributed to Utah legislators who are on the take.

One more reason to lodge your citizen petition vote here:

what will it cost us said...

If the derelict property is worth over $100K a piece I hope their property tax reflects that so Weber County at least gets their fair share. Any fines or liens should have penalties for late payments and intrest charged.

not an old time banker said...

So, why would the bak's collapse effect the River Project or Leshem's LLC? The money's been loaned, the properties purchased, and the developer has gone to work.

What's the hoop-ala all about? Seems to me it's a little late to think that everything will now grind to a halt. The only change I see is an address change that Gadi will need to make when he sends in his mortgage payments.

Biker Babe said...

um ... not an old fart time banker ... the developer did NOT go to work except to board up windows and install really tall fences .. where in the HELL have you been?


Ray said...

Those of us who went to the State Capital for the Gage Froerer/Powderville meeting were told: You have to pay to play, No lobbyist No luck, No tickee No Washee, No money No Honey... As is evidenced by recent events only scandal seems to change politics in this state.(DUI's, Child Perv's) We can't wait for all the politians be arrested or outed in one way or other. SIGN THE ETHICS and REDISTRICTING PETITIONS. That would appear the only effective way open for common citizens to force change.

Heard on the Street said...

Word on the street has it that a couple of well healed individuals in the community, that are not Godfrey fans or fans of what he's been doing in the city, are contemplating approaching the FDIC to buy the loan on the 31 properties that were held at the bank. Their thoughts are they can buy the loan at a discount to either develop the properties themselves or hold the city sponsored developer’s feet to the fire to pay the entire face value of the note.

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