The bank is now on our problem list and is subject to supervisory action. This all transpired in a little over a year. Management is seeking a buyer. If losses continue to accelerate, they will run out of time. Rapid growth is always a red flag - and deserves a close look.
Growth can exceed management's expertise and ability.
One example is one example. And those losses have come in the best economy in living memory. There are a number of reasons. First, as all of you know, there is intense competition for borrowers. Second, as you all know as well, there is heightened investor expectation for increasing earnings, and the promise of higher rates and fees in subprime lending is attractive to many institutions.