‘On the Edge’ Banks Facing Writedowns After FDIC Loan Auctions

That's funny, Robert Reynolds of Reynolds Reynolds & Duncan LLC; most of the rest of the country (and there are many more of us than of bankers) just cannot believe the banks made such idiotic loans at inflated values, with virtually no fundamental due diligence, even as many of us warned about the bubble.

In fact, forget about the "tin foil hatters" (like us here at Implode); how about ground-shaking financial crashes as some sort of "signal":

The loan for construction of the W Hotel in downtown Atlanta was made in April 2008, a month after the collapse of Bear Stearns Cos., according to Reynolds. The developer of the property is Atlanta-based Barry Real Estate Cos., which owns commercial projects in Atlanta, Dallas, Orlando, Florida and Birmingham, Alabama.

Who-coulda-known?

We would add also that it is not the FDIC's mandate to go into the commercial property business. It has already held onto these properties too long.

It is, however, unfair that the mega-banks have all gotten an unscripted and unjustified mega-bailout from the Fed and federal monetary authorities, while everyone else gets tough love.

We say: tough love for all