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<\/a><\/p>\nTo Our Clients, Colleagues and Friends,<\/p>\n
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- Securities firm Keefe, Bruyette has identified 393 banks with Texas ratios greater than 100%.\u00a0 If we assume that 75% of them will fail (our number, not Keefe\u2019s), that would represent $141 billion in assets, and assuming a 25% loss ratio (our number, not theirs), this would cost the FDIC $35 billion.<\/li>\n<\/ul>\n
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- In the greater scheme of things, do you really care who appears on late night TV? Still, wouldn\u2019t you like to get fired like Conan O\u2019Brien and get a $40 million severance package?
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- On this day in history, January 27, 1870, the first college sorority was formed as Kappa Alpha Theta at DePauw University .\u00a0 And remember how Legally Blond<\/em> made fun of sororities and caused a generation of girls to swear they’d never join one?\u00a0 The TV show Greek<\/em> now makes sororities look cool, and a lot of those girls are changing their mind.<\/li>\n
- If you\u2019re worried that you\u2019ll be required to own 5% of every loan you sell, find something else to worry about. Congress is not going to allow something that would kill the housing recovery\u2026.. and housing itself.\u00a0 Even if it did get passed, we guarantee you that some Wall Street firm would figure out how to securitize the 5% pieces.\u00a0 Private funds would buy them, and even if they got bought at a discount, that would just be factored into what the borrower pays.\u00a0 Of all the things people could be worrying about, this should be very low on the list.<\/li>\n<\/ul>\n
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- One of the clich\u00e9s of business is that if you want to be highly successful, you should only hire people from highly successful companies. When we do searches, the first thing we do is ask the client which companies they admire most.\u00a0 And assuming they\u2019re not a client, that\u2018s where we do our initial nosing around.\u00a0 Again, you build a successful company by filling it with people who\u2019ve worked at and learned from successful companies.\u00a0 We see too many companies who hire people they\u2019re really impressed with, but where that person never worked at a successful company.\u00a0\u00a0\u00a0\u00a0<\/li>\n
- It\u2019s easy for lenders to complain that mortgage insurers aren\u2019t paying claims, but while the MI companies look at each claim carefully, they\u2019re still paying out tons of dollars on claims.\u00a0 For the recent two quarters, MGIC wrote checks for over $930 million dollars. We call that honoring your commitments.<\/li>\n<\/ul>\n
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- Last week\u2019s failed banks had 70.2% of their deposits in CDs as compared to the industry average of 50.2%. An over-dependence on time deposits and too few transactional ones (i.e. checking accounts) is often correlated with banks in deep trouble.<\/li>\n<\/ul>\n
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- Business Week<\/em> did an analysis of how the stock market did in the first year of a President\u2019s administration.\u00a0 Here are the top six and the bottom six.<\/li>\n<\/ul>\n
- Last week\u2019s failed banks had 70.2% of their deposits in CDs as compared to the industry average of 50.2%. An over-dependence on time deposits and too few transactional ones (i.e. checking accounts) is often correlated with banks in deep trouble.<\/li>\n<\/ul>\n
- If you\u2019re worried that you\u2019ll be required to own 5% of every loan you sell, find something else to worry about. Congress is not going to allow something that would kill the housing recovery\u2026.. and housing itself.\u00a0 Even if it did get passed, we guarantee you that some Wall Street firm would figure out how to securitize the 5% pieces.\u00a0 Private funds would buy them, and even if they got bought at a discount, that would just be factored into what the borrower pays.\u00a0 Of all the things people could be worrying about, this should be very low on the list.<\/li>\n<\/ul>\n
- On this day in history, January 27, 1870, the first college sorority was formed as Kappa Alpha Theta at DePauw University .\u00a0 And remember how Legally Blond<\/em> made fun of sororities and caused a generation of girls to swear they’d never join one?\u00a0 The TV show Greek<\/em> now makes sororities look cool, and a lot of those girls are changing their mind.<\/li>\n
- In the greater scheme of things, do you really care who appears on late night TV? Still, wouldn\u2019t you like to get fired like Conan O\u2019Brien and get a $40 million severance package?