I suspect ALOT of this is going on and that more of these schemes will be uncovered and Joe Q. Public will find out that it is all over when it is too late. What I mean by that is a repeat of 1929!
Bank Runs insolvency.
you name it is it coming..............
http://biz.yahoo.com/rf/010917/n17151200_1.html
Banner to take $5.4 mln loss related to check kiting
WALLA WALLA, Wash., Sept 17 (Reuters) - Bank holding company Banner Corp. (NasdaqNM:BANR - news) on Monday said it discovered ``irregularities associated with a former senior lending officer'', including a check kiting scheme that would result in an after-tax loss of about $5.4 million.
The Walla Walla, Washington-based bank said the irregularities include a check kiting scheme of a single commercial loan customer of Banner Bank, as well as activities designed to conceal credit weaknesses of several loan customers. Check kiting occurs when nonexistent or in-transit cash from one bank account is deposited into a different account, often at another bank.
As a result of additional reviews of specific loan customers, the company said, it expects to add an additional loan loss provision of about $1.3 million, after tax, for the quarter ended June 30. It is likely that these losses will result in restatement to prior financial statements.
Using preliminary revised figures, nonperforming assets as a percentage of total assets as of June 30, will increase from 0.47 percent to about 0.56 percent.
Banner said it continues to aggressively pursue collection of the check kiting loss from the customer, and there is also the possible recovery from insurance policies. It believes it does not have a risk of additional material check kiting losses at this time.
Bank Runs insolvency.
you name it is it coming..............
http://biz.yahoo.com/rf/010917/n17151200_1.html
Banner to take $5.4 mln loss related to check kiting
WALLA WALLA, Wash., Sept 17 (Reuters) - Bank holding company Banner Corp. (NasdaqNM:BANR - news) on Monday said it discovered ``irregularities associated with a former senior lending officer'', including a check kiting scheme that would result in an after-tax loss of about $5.4 million.
The Walla Walla, Washington-based bank said the irregularities include a check kiting scheme of a single commercial loan customer of Banner Bank, as well as activities designed to conceal credit weaknesses of several loan customers. Check kiting occurs when nonexistent or in-transit cash from one bank account is deposited into a different account, often at another bank.
As a result of additional reviews of specific loan customers, the company said, it expects to add an additional loan loss provision of about $1.3 million, after tax, for the quarter ended June 30. It is likely that these losses will result in restatement to prior financial statements.
Using preliminary revised figures, nonperforming assets as a percentage of total assets as of June 30, will increase from 0.47 percent to about 0.56 percent.
Banner said it continues to aggressively pursue collection of the check kiting loss from the customer, and there is also the possible recovery from insurance policies. It believes it does not have a risk of additional material check kiting losses at this time.
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