In brief: TARP bashing, torture, torches and pitchforks

Here are recent stories of interest from around the web.
Click on the hotlinked headlines to read more.

Show me those loan docs

Homeowners facing foreclosure have a new trick up their sleeves. They are asking financial institutions to show them proof that the bank owns the house. “Prove you own it. Prove I owe for it.” Stall tactics? Yes, but it works. Unbelievably in this digital day and age, some banks are struggling to produce any documentation. Some people have found banks give up the search along with their foreclosure efforts. You should probably send this to your loan department ASAP.

Is it fair to bash competitors for taking TARP money?

While the author of the article never really seems to take a firm position on the issue, it’s really the question that’s most interesting. There probably isn’t a right or wrong answer. It’s just a matter of your organization’s values and your comfort level with aggressive marketing. You may not find it savory nor a “good thing for the industry,” but it isn’t unethical. And given the public’s general mood, it might be one of the most effective strategies you can deploy right now.

96.52% of all credit unions are well capitalized

After months of arguing about whether or not credit unions should pursue TARP money, someone finnnnalllly crunched the number to help answer the question, “Do they NEED it?” (Thank you Christian Mullins.) Take a look and see what you think.

Banker gives $60 million of his OWN money to employees

After selling a majority stake in Miami-based City National Bancshares last November, Leonard Abess Jr. gave $60 million of the proceeds — out of his own pocket — and gave it back to his tellers, bookkeepers, clerks…everyone on the payroll. All 399 employees received bonuses, and he even tracked down 72 former employees so they could share in the windfall. The bonuses were based on years of service, so for longtime employees the bonus came to over $100,000.

Asked later what motivated him, Abess said he had long dreamed of a way to reward employees. He had been thinking of creating an employee stock option plan before he decided to sell the bank. Mr. Abess, you are a true role model for the future of our economy.

The SEC should adopt CIA methods

In order to ferret out financial fraud, a noted law professor thinks the Securities and Exchange Commission should learn the basics of espionage. He says the SEC could learn a lot from the Central Intelligence Agency’s methods of gathering information. He stopped short of suggesting that waterboarding, torture and rendition should be part of the SEC’s arsenal, although that might really please the angry mob in the next story…

Grab your torch and pitchfork!

Last week, at-risk homeowners stormed the mansions of mortgage CEOs. Don’t be terribly shocked when Wall Street bankers become the targets of increasingly violent protests. You may think the probability of public lynchings is extremely remote, but you have to admit: It is now a real possibility.