Globalcrossroadscapital.com reports on trend of LBO's of distressed banks

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) November 29, 2009 -- The Las Vegas-based Implode-O-Meter covers banks, mortgage lenders, & hedge funds. It reports that 371 financial institutions have failed from 2006-8. A CNBC.com video on vodpod.com reports that 1,000 banks are projected to fail in next 2 years.

An 8/09 report indicated that Florida, Georgia and Illinois each had 15 undercapitalized banks. By 11/09, Florida banks had reported a combined loss increase of $251M in Q2 to $674M in Q3. In 10/09, yahoo.com reported that bank failures top 100. In 10/09, the Las Vegas Sun Newspaper reported the closure of 3 branches of Bank of Nevada.

The CNBC video of Wall Street analyst Meridith Whitney reports that "Banks are uninvestable". This video is also on youtube.com. The reality is that banks are an ideal investment for those who claim to have $100M to invest in bulk REO's. Since the FDIC doesn't sell bulk REO's; google our prior PR titled "Globalcrossroadscapital.com asks "Why buy REO's when you can buy the bank that owns the REO's?".

In 8/09, Bloomberg.com reports that the FDIC adopts weaker rules to attract LBO firms to failed banks. They have lowered the capital ratio (down payment) from 15% to 10%. Essentially if one has $10M+ in cash they are eligible to buy a bank. The FDIC has brokered 2 deals with P/E firms so far in '09.

Texas billionaire Andrew Beal of Beal Bank was featured in Forbes Magazine in 4/09. In 10/09, it was reported that he filed to start a new bank called ProAlliance Bank in Plano, TX. In 11/09, Beal was reportedly pending an acquisition of a failing Florida bank.
Buying distressed loan portfolios has been profitable for Beal, as his financial institutions consolidated revenue for 2008 has been nearly $455M.

Globalcrossroadscapital.com is a US-Vet-owned IR communications firm and federal contractor authorized to represent clients wanting to deal with the FDIC, SBIC's, GSA, etc.
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