Tag Archives: Florida

Banker Buys Luxury Condo With Banks Bailout Money

I thought we’ve got rid of those guys – you know like John “golden.waste-bin” Thain and other like-minded –  but I was obviously naive.  According to the  US Special Inspector General for the Troubled Asset Relief Program (SIGTARP) former chairman and chief financial officer (CFO) of Mainstreet Bank, Darryl Layne Woods,, seems to have used his banks bailout money to by himself a luxury vacation condominium.  Now, that’s plain naughty!

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…and who paid for the motorcycle?…

“When SIGTARP required Mainstreet Bank to disclose how it spent TARP funds, bank chairman and CFO Woods failed to tell the truth that within days of receiving the TARP funds, the bank spent more than a third of the funds purchasing a waterfront condo in Florida for his and other executives’ use. SIGTARP and our law enforcement partners will hold accountable and bring to justice those guilty of crimes related to TARP.”

Well, if this was a drug crime it would probably be equal to possession of a couple of ounces of marijuana – maybe with the intent to sell. In other words: Not the biggest crime in the business, not by a long shot!

Darryl Layne Woods

Darryl Layne Woods

But the thing that puzzles me a bit is that people like this – who obviously have not contact with the real world, and completely lacks social skills – still hold top positions in major financial institutions (in other institutions, for that matter) although they are totally incompetent!?

Yeah, well I’ll keep on wondering…

Here’s the info from SIGTARP:

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Filed under Laws and Regulations, National Economic Politics

Finally, Bankers Are Getting Some Competition

As good credit is getting harder and harder to get – at least for ordinary people and small businesses – new solutions is starting to emerge. Like the lending clubs.  The concept is not new – in fact – this is what the good old banks once used to do.

“Folks just need a way out.”

Don Burke


Planet Depos owner Joe DiMonte was struggling with his bank to get funding for his newly started business, so he reached out to Lending Club, an online peer-to-peer lending service, and got his money in less than 2 weeks.”Someone from California gives $25. Someone from Alaska or Florida gives another $75 and before you know it, you’re up to $15,000,” the happy business owner reports.

The staff of the 9 month old startup is working to get depositions taken all over the world.

But this time last year, Planet Depos, barely had a camera or a court reporter.

And, they struggled to get any help from a bank.

“You go there, and you just kinda get laughed at,” says Planet Depos owner Joe DiMonte.

So DiMonte reached out to Lending Club, an online peer-to-peer lending service, and got his money in less than 2 weeks.

“Someone from California gives $25. Someone from Alaska or Florida gives another $75 and before you know it, you’re up to $15,000,” he says.

Ages ago, when simplicity reigned, neighbors were the real community bank.

Now there’s a rebirth of this kind of transaction, through what’s called peer-to-peer lending.

“It’s not being paid to a nameless, faceless bank. They know there’s a real person on the other end. It’s the same for investors,” says John Donovan COO of Lending Club.

Donovan says the approach is simple; credit worthy borrowers get low interest rates and investors see big returns.

However, the selection process is very detailed. You must have a score of at least 660 to qualify.

Peer lending differs from bank lending in the way they diversify their loans. Today’s large banks aren’t putting all their eggs in one basket, and the people who invest get to spread out their risk.

The lending clubs are putting a few eggs in a few baskets. Borrowers get money from different sources and by given only smaller amounts, they also reduce their overall risk.

“I have 899 that are currently in some stage of being paid back – and current,” investor Don Burke says.

Burke joined a lending club 18 months ago to diversify his investments.

But the stories behind the loan applications, made him clinch the deal.

Loans From The Heart

One of his first loans truly tugged at the heart:

“A fella ended up in a wheelchair and needed to make his home more wheelchair accessible,” he says.

Something Mr Burke probably will have to do in a few years, as he has muscular dystrophy.

“Folks just need a way out,” Burke says.

A Game Changer

Both givers and receivers call this approach to banking – a game changer.

Business owner Joe DiMonte says he hopes to complete the circle.

“Maybe one day I’ll be an investor on Lending Club.”

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Filed under International Econnomic Politics, National Economic Politics

Thoughts On Reshaping The Economy

Business development expert Richard Florida discussed the patterns in U.S. history that drive our economy and society, and how the country is heading into a reset or reshaping of the way we live and work.

“It may start slow, it may take awhile to develop, but I think more and more Americans realize that the best thing you can do is create something of your own.”

Richard Florida

One of the current problems is that there are over 60 million people working at low-wage jobs such as in the service industry. We need to apply the principles of quality management and high performance to these jobs and make them more productive and efficient, and thus better paying, he suggest.

In the next five years, Florida sees the opportunity for society to do things differently, such as find new forms of infrastructure that “speed the movement of people, goods, and ideas,” and reinvent the education system to encourage children to be inventive and entrepreneurial.

He also argued that housing be rethought, with less emphasis on home ownership, and more on affordable rentals.

Regarding work, Richard Florida believes people should determine what they really love or are passionate about and then figure out a way to do it as an enterprise.

“It may start slow, it may take awhile to develop, but I think more and more Americans realize that the best thing you can do is create something of your own,” he says.

Interestingly, he noted that while new ideas and technology are important, execution and management tend to trump them in terms of getting a new business enterprise off the ground.

Source:  Gerald Celente Trends Blog


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Filed under International Econnomic Politics, National Economic Politics