Comments on: The ugliness of New Frontier Bank http://blog.amyolivershow.com/2009/05/the-ugliness-of-new-frontier-bank/ Just another WordPress weblog Thu, 29 Jul 2010 11:41:07 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Jody Brandner http://blog.amyolivershow.com/2009/05/the-ugliness-of-new-frontier-bank/comment-page-1/#comment-271 Jody Brandner Sat, 15 Aug 2009 03:30:28 +0000 http://blog.amyolivershow.com/?p=296#comment-271 This question is for Steve or anyone that wants to answer it. If these dairy man are going to be better off after they get bought up, how can that be? Their loans being bought for pennies on the dollar are just for their new frontier loans, this does'nt mean that they will get a new line of credit. My wife and I work in the dairy industry and last we checked they are still losing money. Alot of these dairies are just getting by on their milk checks. That does'nt include making their loan payments or buying feed or any extra costs that could arise. I also heard that once a business or individual gets their loan bought through an auction, or bailed out that they become higher risk to whichever bank is going to loan to them. With all this how can it be true that they are better off after they go to auction? I do not see it, but maybe somebody has an answer. I think they will all fail, We know of dairies that have everything paid off and are struggling to stay afloat. thank you for your time. This question is for Steve or anyone that wants to answer it. If these dairy man are going to be better off after they get bought up, how can that be? Their loans being bought for pennies on the dollar are just for their new frontier loans, this does’nt mean that they will get a new line of credit. My wife and I work in the dairy industry and last we checked they are still losing money. Alot of these dairies are just getting by on their milk checks. That does’nt include making their loan payments or buying feed or any extra costs that could arise. I also heard that once a business or individual gets their loan bought through an auction, or bailed out that they become higher risk to whichever bank is going to loan to them. With all this how can it be true that they are better off after they go to auction? I do not see it, but maybe somebody has an answer. I think they will all fail, We know of dairies that have everything paid off and are struggling to stay afloat. thank you for your time.

]]> By: New Frontier Bank: getting uglier? | The Amy Oliver Show http://blog.amyolivershow.com/2009/05/the-ugliness-of-new-frontier-bank/comment-page-1/#comment-262 New Frontier Bank: getting uglier? | The Amy Oliver Show Mon, 10 Aug 2009 14:07:08 +0000 http://blog.amyolivershow.com/?p=296#comment-262 [...] you are in Northern Colorado and have even as much as a dozen degrees of separation between you and New Frontier Bank.   According to the Greeley Tribune: Iron Mountain is now the second domino to fall after the [...] [...] you are in Northern Colorado and have even as much as a dozen degrees of separation between you and New Frontier Bank.   According to the Greeley Tribune: Iron Mountain is now the second domino to fall after the [...]

]]> By: amyoliver http://blog.amyolivershow.com/2009/05/the-ugliness-of-new-frontier-bank/comment-page-1/#comment-256 amyoliver Fri, 07 Aug 2009 20:39:20 +0000 http://blog.amyolivershow.com/?p=296#comment-256 Hello Steve -- Thank you for your comments. I appreciate you taking time to read and comment. This is a huge issue for us in Northern Colorado. Couple of points: According to the FDIC, the loans are being bundled. Every piece of property tied to a NFB loan (that will be sold) has not seen a 60-70 percent decline in valuation. The bundle of loans collectively might have dropped but not each individual property. So someone will get loans on property worth much more than what they are paying. Otherwise why would anyone bother to buy the bundled loans. Second point, my source on future communication occuring over the phone or via email but not in person is the FDIC. Thanks again for your comments. Hello Steve –

Thank you for your comments. I appreciate you taking time to read and comment. This is a huge issue for us in Northern Colorado.

Couple of points:

According to the FDIC, the loans are being bundled. Every piece of property tied to a NFB loan (that will be sold) has not seen a 60-70 percent decline in valuation. The bundle of loans collectively might have dropped but not each individual property. So someone will get loans on property worth much more than what they are paying. Otherwise why would anyone bother to buy the bundled loans.

Second point, my source on future communication occuring over the phone or via email but not in person is the FDIC.

Thanks again for your comments.

]]> By: Steven Petrie http://blog.amyolivershow.com/2009/05/the-ugliness-of-new-frontier-bank/comment-page-1/#comment-253 Steven Petrie Wed, 05 Aug 2009 17:14:40 +0000 http://blog.amyolivershow.com/?p=296#comment-253 Amy - I wook with a Denver based firm that is considering buying some of these loans. I saw your blog and albeit somewhat late, thought you would like to read my perspedctive. First off - the FDIC has created a process whereby not anyone with a few extra bucks can bid on these particular assets. According to the FDIC's sales process - bidders have to be pre-qualified as experienced ag lenders, but not necessarily be a bank. Secondly, while I agree that many of these loans, which by the way are not paying as agreed, will sell for substantial discounts - it is what they are worth. Thirdly, I don't agree with your source's statement that all future communication will occur over the phone and be as impersonal as your blog seems to indicate. The buyers of these loans know what they are getting into and, assuming there is a willingness and ability to work with the buyer, I believe the borrowers will be better off than they where with the failed institution. One reason for this is the note buyers typically are not constrained by the heavy regulations which govern banks. However, if the borrowers stick their head in the sand and/or hold their hand out for gratuities, they will likely lose their farms. In most cases, the borrowers are going to end up at a new bank or farm credit organization with less debt that they have today. Amy - I wook with a Denver based firm that is considering buying some of these loans. I saw your blog and albeit somewhat late, thought you would like to read my perspedctive. First off - the FDIC has created a process whereby not anyone with a few extra bucks can bid on these particular assets. According to the FDIC’s sales process - bidders have to be pre-qualified as experienced ag lenders, but not necessarily be a bank. Secondly, while I agree that many of these loans, which by the way are not paying as agreed, will sell for substantial discounts - it is what they are worth. Thirdly, I don’t agree with your source’s statement that all future communication will occur over the phone and be as impersonal as your blog seems to indicate. The buyers of these loans know what they are getting into and, assuming there is a willingness and ability to work with the buyer, I believe the borrowers will be better off than they where with the failed institution. One reason for this is the note buyers typically are not constrained by the heavy regulations which govern banks. However, if the borrowers stick their head in the sand and/or hold their hand out for gratuities, they will likely lose their farms. In most cases, the borrowers are going to end up at a new bank or farm credit organization with less debt that they have today.

]]> By: Nagging questions about New Frontier Bank | The Amy Oliver Show http://blog.amyolivershow.com/2009/05/the-ugliness-of-new-frontier-bank/comment-page-1/#comment-191 Nagging questions about New Frontier Bank | The Amy Oliver Show Wed, 17 Jun 2009 17:35:35 +0000 http://blog.amyolivershow.com/?p=296#comment-191 [...] I do not support bailouts.   The worst thing about them, is that the government gets to pick winners and losers.  Clearly, Northern Colorado has been tagged a loser.   It’s also clear that those in charge underestimated the pain of closing NFB versus keeping it afloat with TARP money.  We are in uncharted waters.  In my opinion, neither the FDIC, Governor Ritter, nor our congressional delegation (Congresswoman Markey and Senators Benett and Udall) ever grasped the magnitude of the situation.  The economic multiplier effect will be in the billions of dollars.  This is our economic tsunami.   [...] [...] I do not support bailouts.   The worst thing about them, is that the government gets to pick winners and losers.  Clearly, Northern Colorado has been tagged a loser.   It’s also clear that those in charge underestimated the pain of closing NFB versus keeping it afloat with TARP money.  We are in uncharted waters.  In my opinion, neither the FDIC, Governor Ritter, nor our congressional delegation (Congresswoman Markey and Senators Benett and Udall) ever grasped the magnitude of the situation.  The economic multiplier effect will be in the billions of dollars.  This is our economic tsunami.   [...]

]]> By: District six needs an education | The Amy Oliver Show http://blog.amyolivershow.com/2009/05/the-ugliness-of-new-frontier-bank/comment-page-1/#comment-174 District six needs an education | The Amy Oliver Show Tue, 02 Jun 2009 00:53:02 +0000 http://blog.amyolivershow.com/?p=296#comment-174 [...] is nearly 9 percent; the economy continues to contract; GM is bankrupt; New Frontier Bank’s collapse continues to plague all of Northern Colorado; and the Greeley teachers’ union (GEA) wants [...] [...] is nearly 9 percent; the economy continues to contract; GM is bankrupt; New Frontier Bank’s collapse continues to plague all of Northern Colorado; and the Greeley teachers’ union (GEA) wants [...]

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