Branching out
Posted on February 15, 2011 by Sonoma Valley Sun
Rabobank celebrated the opening of its Sonoma location, the first in the county, with a ribbon cutting and party. Making things official are, from left, Rabobank CEO Rick Arredondo, Councilmember Tom Rouse, Branch Manager Cathleen Gorham, branch employees Anna Dawson, Senior Relationship Manager Sean Cutting, and Chamber of Commerce Board Chair Chip Allen. Executives said the organization is committed to the branch, located at 10 Maple St. “When we come into a community, we stay,” said one official. “Rabobank has never closed a branch.”
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RECYCLED BANKERS~~A Foreign-owned Dutch Bank targeting large Agri-business. Glad to have them in town but hoping they don’t use our community deposits as a feeder to lend out into the Central Valley or overseas. Cutting and Gorham former President and COO of Sonoma Valley Bank still leave a bad taste in the mouths of many Valley residents. Straw borrowers and lending limit concerns concentrated out of the Valley remain under scrutiny. (Fuerza)
RECYCLED BANKERS~~A Foreign-owned Dutch Bank targeting large Agri-business. Glad to have them in town but hoping they don’t use our community deposits as a feeder to lend out into the Central Valley or overseas. Cutting and Gorham former President and COO of Sonoma Valley Bank still leave a bad taste in the mouths of many Valley residents. Straw borrowers and lending limit concerns concentrated out of the Valley remain under scrutiny. (Fuerza)
UTTERLY Sickening.
UTTERLY Sickening.
Imagine this possible scenario. If Rabobank’s new location sat empty one might presume the original developer walked on the funding bank, SVB, years ago and stuck SVB with a defaulted white elephant. One can also envision one or more former SVB employees cutting a Rabobank job deal by “finding a super cheap Sonoma location” that may have been neatly tucked away and wet-nursed in the REO portfolio of the SVB successor Westamerica who would be happy to eject a non-performing drag on the portfolio. Whether they cared that it was about to be almost fully leased to house a competitor only they can say. Hope SVB shareholders can appreciate spotting Rabobank such a value. If true, its reprehensible.
Imagine this possible scenario. If Rabobank’s new location sat empty one might presume the original developer walked on the funding bank, SVB, years ago and stuck SVB with a defaulted white elephant. One can also envision one or more former SVB employees cutting a Rabobank job deal by “finding a super cheap Sonoma location” that may have been neatly tucked away and wet-nursed in the REO portfolio of the SVB successor Westamerica who would be happy to eject a non-performing drag on the portfolio. Whether they cared that it was about to be almost fully leased to house a competitor only they can say. Hope SVB shareholders can appreciate spotting Rabobank such a value. If true, its reprehensible.
Or another possible scenario is that the building’s ownership never changed and the loan was just a loan on a severely underoccupied commercial venture that Westamerica inherited from SVB’s loan portfolio.
Whatever, shareholders, who were the ultimate underwriters, couldn’t know Rabobank would benefit while shareholders were left with nothing.
Or another possible scenario is that the building’s ownership never changed and the loan was just a loan on a severely underoccupied commercial venture that Westamerica inherited from SVB’s loan portfolio.
Whatever, shareholders, who were the ultimate underwriters, couldn’t know Rabobank would benefit while shareholders were left with nothing.
Rabobank predecessor Napa Community Bank, purchased last year was said to also have partcipated in a share of the toxic loans originated by Sonoma Valley Bank (Madjlessi and Larsen et al). Straw buyers and straw borrowers alike are suspected according to reports.
These same toxic loans also are connected to IndyMac Bank, PFF Bank, United Commercial Bank, and Sonoma Valley Bank (four failed banks, some of which TARP recipients). Napa neighbor bank Charter Oak is also said to have shared as the third participant as quoted by President Kelly in the Napa Valley Register News recently and he alone charged off $5 million in toxic Sonoma Valley Loans.
Who knew what, and when?
Rabobank predecessor Napa Community Bank, purchased last year was said to also have partcipated in a share of the toxic loans originated by Sonoma Valley Bank (Madjlessi and Larsen et al). Straw buyers and straw borrowers alike are suspected according to reports.
These same toxic loans also are connected to IndyMac Bank, PFF Bank, United Commercial Bank, and Sonoma Valley Bank (four failed banks, some of which TARP recipients). Napa neighbor bank Charter Oak is also said to have shared as the third participant as quoted by President Kelly in the Napa Valley Register News recently and he alone charged off $5 million in toxic Sonoma Valley Loans.
Who knew what, and when?
Should suspicious activity reports (SAR’s) have been filed? When, by whom, were they filed? and if not why?
Should suspicious activity reports (SAR’s) have been filed? When, by whom, were they filed? and if not why?
The term “branching out” could also refer to the cancer that former SVB bankers spread to neighboring banks, right? Are more bank failures going to trace the cancer back to Sonoma Valley Bank ? …3…2…1…
The term “branching out” could also refer to the cancer that former SVB bankers spread to neighboring banks, right? Are more bank failures going to trace the cancer back to Sonoma Valley Bank ? …3…2…1…
Charter Oak Bank of Napa failed tonight after choking on more than $5 million in losses from former Sonoma Valley Bank toxic assets. How many more banks have to fail in the wake?
If only the FDIC had seized these toxic assets August 20th, 2010, Charter Oak would still be standing. The FDIC should have taken these assets, paid Westamerica and Charter Oak par value for the assets, and worked to collect the loans using Government resources. The FDIC knew there was straw man activity in Bijian Madjlessi relationships because they chased the loans up the 101 from Pasadena at IndyMac, PFF Bank, and United Commercial.
Nearly half the losses borne by Charter Oak Bank were served up through toxic loan participations from Sonoma Valley Bank ($5 million of a total $13 million in losses charged off in 2010).
Napa Community Bank (kna Rabobank) was also said to have swallowed a share.
Charter Oak Bank of Napa failed tonight after choking on more than $5 million in losses from former Sonoma Valley Bank toxic assets. How many more banks have to fail in the wake?
If only the FDIC had seized these toxic assets August 20th, 2010, Charter Oak would still be standing. The FDIC should have taken these assets, paid Westamerica and Charter Oak par value for the assets, and worked to collect the loans using Government resources. The FDIC knew there was straw man activity in Bijian Madjlessi relationships because they chased the loans up the 101 from Pasadena at IndyMac, PFF Bank, and United Commercial.
Nearly half the losses borne by Charter Oak Bank were served up through toxic loan participations from Sonoma Valley Bank ($5 million of a total $13 million in losses charged off in 2010).
Napa Community Bank (kna Rabobank) was also said to have swallowed a share.
That might be the biggest story. The FDIC missed this guy at all the banks but knew by the time they got to SVB what and who these locusts really were. Things were very different at CO.
After all, the CO compensation program was a fraction of what it was at SVB, right? Nor did CO bankers accept gifts, gratuities or trips in return for lax loan standards like SVB, right? I’d bet SVB lied to CO to sell that toxic
paper to CO.
Charter Oak Bank compensation was average about $170k-$225k for the president and $150k for the CCO compared to SVB peak at approx $900k for the President and $450k for the CCO….oh, that’s about 3x-4x the peer average according to Proxy SEC filings.
Bijian had a 90ft. Yacht repossessed finally, according to sources, by Vineyard National Bank before they failed. IndyMac, PFF Bankers, all enjoying “the ride.” Use of a private jet as well too. San Diego, Vegas, Reno…Yacht cruises on The Bay, Newport, Puget/San Juan, off San Diego…The Lifestyle
SAR’s anyone? Or perhaps just “thin gruel?” Time will tell.
Who knew what, and when?
That might be the biggest story. The FDIC missed this guy at all the banks but knew by the time they got to SVB what and who these locusts really were. Things were very different at CO.
After all, the CO compensation program was a fraction of what it was at SVB, right? Nor did CO bankers accept gifts, gratuities or trips in return for lax loan standards like SVB, right? I’d bet SVB lied to CO to sell that toxic
paper to CO.
Charter Oak Bank compensation was average about $170k-$225k for the president and $150k for the CCO compared to SVB peak at approx $900k for the President and $450k for the CCO….oh, that’s about 3x-4x the peer average according to Proxy SEC filings.
Bijian had a 90ft. Yacht repossessed finally, according to sources, by Vineyard National Bank before they failed. IndyMac, PFF Bankers, all enjoying “the ride.” Use of a private jet as well too. San Diego, Vegas, Reno…Yacht cruises on The Bay, Newport, Puget/San Juan, off San Diego…The Lifestyle
SAR’s anyone? Or perhaps just “thin gruel?” Time will tell.
Who knew what, and when?
http://www.pressdemocrat.com/article/20110218/BUSINESS/110219403/1350?Title=Regulators-close-Charter-Oak-Bank-in-Napa
http://www.pressdemocrat.com/article/20110218/BUSINESS/110219403/1350?Title=Regulators-close-Charter-Oak-Bank-in-Napa
The FDIC may have missed it buried in the matrix of LLC’s but The Loan Officer terminated in February, and the former CCO/turned President had to have known full well all these LLC’s were related to Bijian and Glenn…SSE, Petaluma Greenbriar, Courtside Village, 101 Houseco, 132 Park Village, Park Lane Villas, MMB, Aston, Menlo Oak, Masma…and including FUERZA?
The Loan Committee, and certainly the last 6 months the full Board knew as well.
The FDIC may have missed it buried in the matrix of LLC’s but The Loan Officer terminated in February, and the former CCO/turned President had to have known full well all these LLC’s were related to Bijian and Glenn…SSE, Petaluma Greenbriar, Courtside Village, 101 Houseco, 132 Park Village, Park Lane Villas, MMB, Aston, Menlo Oak, Masma…and including FUERZA?
The Loan Committee, and certainly the last 6 months the full Board knew as well.
One would surmise the COO, Ethics/Compliance Officer also got wind as well? SAR’s would have been the responsibility in this function typically.
SVB Loan Committee membership: Downing-(Chairman), Brangham, Nicholas, Switzer, Sangiacomo…..and Cutting presenting.
“Switzer emphasized that the loans were not of the ‘sub-prime’ mortgage type that took so many large institutions to the brink, but rather were loans on land being developed by ‘known individuals’ and businesses with a good track record of success in such development. Some of the loans were brought to the bank by other banks that didn’t have the capital to lend (really?)Appraisals and other due diligence practices were followed, Switzer insisted” – (Index Tribune article published Friday August 27th, 2010 just one week after the failure.)
“Insisted”? strong words for a casual interview. “Known individuals?” So then SVB must have known all the LLC’s were related to Bijian and Glenn.
Previous court cases, bankruptcy filings, Mortgage licenses revoked and suspended, criminal record in Marin County, complications in Reno including fires on YouTube? Simple “Google” uncovers this. Straw-buyers (family, friends, and business associates) inflating appraisals puffing up underlying sales data? Straw-buyers under the LLC’s to bypass legal lending limits?
One more time…are you SURE you knew? Who knew what, and when? When did the participant banks know…or did they?
An SVB Reunion was said to have occurred at the Grand Opening. Nicholas, Page, and Brangham all know….surely.
An SVB Reunion was said to have occurred at the Grand Opening. Nicholas, Page, and Brangham all know….surely.
Is there a ban on bank news at the paper across the street?
Gonna be tough to dig outta the hole they climbed into. Became “part” of the story now. Chamber mixers and cronyism is powerful within these circles. Makes you do things, you might not otherwise do.
The LIGHT shined into the darkness, and the darkness did not overcome the Light.
Only the TRUTH will set them free.
“For what is a man profited, if he shall gain the whole world, and lose his own soul?” – Matthew 16:26
Is there a ban on bank news at the paper across the street?
Gonna be tough to dig outta the hole they climbed into. Became “part” of the story now. Chamber mixers and cronyism is powerful within these circles. Makes you do things, you might not otherwise do.
The LIGHT shined into the darkness, and the darkness did not overcome the Light.
Only the TRUTH will set them free.
Caesar:
Who is it in the press that calls on me?
I hear a tongue shriller than all the music
Cry “Caesar!” Speak, Caesar is turn’d to hear.
Soothsayer:
Beware the ides of March.
Caesar:
What man is that?
Brutus:
A soothsayer bids you beware the ides of March.
////////
Julius Caesar Act 1, scene 2, 15–19
Caesar:
Who is it in the press that calls on me?
I hear a tongue shriller than all the music
Cry “Caesar!” Speak, Caesar is turn’d to hear.
Soothsayer:
Beware the ides of March.
Caesar:
What man is that?
Brutus:
A soothsayer bids you beware the ides of March.
////////
Julius Caesar Act 1, scene 2, 15–19
Many in Sonoma agree, Rabobank is missing the mark with the quarter-page (full color) ad campaigns as depicted in today’s cross town Index Tribune today, the Slogans: “SAFE-SOUND-and ALWAYS AROUND.”
Ironic the two former Sonoma Valley Bank officers depicted in the Rabobank ad, given their involvement in the failure of Sonoma Valley Bank August 20, 2010 one as President and the other as Chief Operating Officer.
While Rabobank might be financially secure, in this Valley, they may wish to review this promotional combination.
Further, it doesn’t show good taste or good “sportsmanlike conduct” in the wake of the failure of Charter Oak Bank in Napa this past Friday to run such an ad, given the involvement Sonoma Valley Bank had in contributing to the toxic assets sold as participations to Charter, as referenced by Napa Valley Register news articles where they charged off as loss $5 million (nearly half the entire losses) in related deals.
Again, Rabobank should know the relationships, since they are also said to have shared in a partcipation of some of the Bijian/Glenn deals themselves. Suspected in some combination of SSE LLC (storage), Petaluma Greenbriar Aprtments (condo conversion that never went anywhere), or Courtside Village (a failed project on Sebastobol Rd in Santa Rosa) also referred to as 101 Houseco, 132 Park Village, Village Square, et al.