Will Deutsche Bank Have to Confess its Colonial/TBW Sins to Father Barofsky?



First of all, I would like to thank Deutsche Bank for frantically Googling themselves over the Colonial/Taylor, Bean & Whitaker drama otherwise I would have never thought to make this connection. So thanks go out to the DB rats for busting themselves out.

In case you've been under a rock for the last, oh, 27 hours, here's the sitch:

Colonial BancGroup and Taylor, Bean & Whitaker are in a WHOLE load of trouble. The Feds (as in FBI, not Bernanke), working with the Treasury, have raided their offices, seized documents, and scared the hell out mortgage and finance companies everywhere. (can I just say here that my analytics are cracking me up? You bastards better be scared. Here comes the hammer, you should duck right about..... NOW!) The FHA has banned TBW for providing "false" information to the agency and this is but the beginning. Meanwhile, who the hell was auditing these two? That's what I want to know.

So, where were we? Oh yeah. Deutsche Bank... Confess your sins!

Colonial BancGroup Signs Definitive Agreement with Investors Led by Taylor, Bean & Whitaker for a $300 Million Investment (via Reuters March 31, 2009):

Chairman, CEO and President, Robert E. Lowder, announced today the signing of a definitive agreement with investors led by Taylor, Bean & Whitaker Mortgage Company (TBW) (collectively referred to as the "Investors") for a $300 million equity investment in Colonial. The closing of the investment is subject to certain conditions being met and the approval of the bank regulatory authorities.

It is anticipated that Colonial will continue to operate as a stand-alone publicly-traded company with an independent board of directors and management team. Following completion of the transaction, on an as-converted basis, the Investors will own approximately 75% of Colonial's common stock outstanding and the proforma tangible common book value per share as of December 31, 2008 would have been $1.45 per share had the preference shares been assumed to have been converted to common equity.

"We are pleased to announce this proposed equity investment and to welcome TBW and the Investors as shareholders. This transaction should strengthen our financial position and allow Colonial to continue to offer its customers high quality banking services," said Mr. Lowder.

Under the terms of the agreement, which was unanimously approved by the board of directors of Colonial, the Investors will purchase 466,600 shares of contingently convertible voting preference stock (Series A stock) and 133,400 shares of contingently convertible non-voting preference stock (Series B stock) at a price of $500 per share for an aggregate purchase price of $300 million.

Additional terms include the following; (i) Colonial and the Investors agree to use commercially reasonable best efforts and to cooperate so as to consummate the transaction; (ii) Colonial and the Investors agree to cooperate on regulatory filings; (iii) TBW agrees to seek approval from appropriate regulators regarding the applicability of Regulation W to the existing relationships between Colonial and TBW; and (iv) Colonial agrees that it will not solicit alternative transactions or investments except Colonial has the right for 30 days to receive and entertain unsolicited proposals if such proposals constitute a superior proposal as defined in the agreement.

If Colonial enters into a superior proposal, or if certain other conditions are not satisfied, Colonial would pay a termination fee of $10 million. Upon closing, the Colonial board of directors will be fixed at fifteen members of which five will be selected by the Investors as provided in the agreement. Within 60 days of closing, the board of directors will consist of five continuing members, the five members as selected by the Investors, and five other members mutually agreeable to Colonial and the Investors.

TBW is privately-owned and is a savings and loan holding company regulated by the Office of Thrift Supervision through its ownership of Platinum Community Bancshares, the holding company for Platinum Community Bank, a federal savings bank headquartered in Rolling Meadows, Illinois. Because of TBW's regulatory status, the agreement contemplates that Colonial Bank will convert to a federal savings and loan association. TBW is being advised by Deutsche Bank Securities, Inc.


So what spooked TBW?

And what in the hell was Deutsche Bank thinking?! How long until they are dragged into this mess?

I can only hope Father Barofsky is on their doorstep as we speak with the wafers and a chalice full of Ohhhhh Crap!

Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.

8 comments:

Shakaama said...

You sir are a riot and that pic is to die for.

Hmm the connection with deutsche bank, I would have never made that connection. My hats off to you. I read about 50 articles and blogs before i post my blog as well.

Shakaama,

Thank you but I'm actually a ma'am, not a sir :)

This story keeps getting better and better. DB isn't the only one fronting itself off. And I'm happy to connect ALLLLLL of the dots. That's just how I get down ;)

Jr

CHRIS SCOTT said...

Here's one better. Deutsche Bank Account Rep's falsified a clients income and assets to show that the client grossed $11,500.00 a month when she only grossed $2,000.00 a month. They should run and hide (SMILE)!

Chris,

Figure out why DB cared. That should be fairly obvious.


Who is supposed to catch their misdeeds?

Jan Blakeman said...

Okay, please try to connect these dots. Mortgage servicing rights for TBW have been reassigned to Cenlar, American Home Mortgage Servicing Inc.(AHMSI) and Bank of America(although most employees don't know this). AHMSI is acting as a collection agency yet claim to own our mortgage company while working out of India, as is Cenlar(working out of India). I tracked AHMSI back to this artical: Business Wire, Oct 5,2007--American Home Investment Corp.(OTC:AHMIQ)("American Home")today announced that the stalking horse bid of AH Mortgage Acquisition Co., an entity sponsored by WL Ross & Co.LLC was selected as the highest and best offer for American Home's mortgage servicing platform and mortgage servicing rights. The sale of the servicing business is subject to the approval of the U.S. Bankruptcy Court for the District of Delaware. Only info on WL Ross that I can find is that he is with about 50 other private investors and I cannot even substantiate that. Have you seen the complaints from all of the reassignments of our mortgages? AHMSI alone has over 30000 and several class action suits starting. Did I get your interest? We need help. H@R Block and Washington Mutual also had their servicing rights bought out. Freddie Mac employees are the uninformed and the servicing companies are not subject to banking regulations. Are they all being purchased by the same groug of investors and who are they? I am having a difficult time reaccessing websites; so, I have been printing them. Now what? I don't think there is any danger in talking about any of this because I think "they" have already achieved their goal and it's only a matter of time before checkmate.

Anonymous said...

we are facing seemingly arbitrary charges and constantly shifting monthly payments from ocwen. it's as if they don't really know what they are doing, or they keep trying to come up with a figure we owe them that they know we can't pay! does the hud/hope numbers work? should i sue? they don't even appear as a legitimate organization. you have to throw a fit to get a hold on anyone in their organization. we asked for a reduction in monthly payment, and they said no, in fact we're adding 680 extra dollars to your payment each month. WTF? who are these people? what is their real agenda?

Anonymous said...

I have evidence involving another mortgage company here in Utah of these same crimes. Credit reports of the owner of this mortgage company that show loans with TBW never getting one payment on several loans of over 400,000 each@! Would love to add another dot in this dot to dot scam. :)
Who do I contact?

Anonymous said...

What happened to TBW couldn't happen to a more deserving company, except perhaps Roundpoint Mortgage and BofA. TBW sold my loan to BofA while we were in default and on the cusp of foreclosure and BK. BofA sold it back to TBW, never having interfaced with us in any way. Now several years later, BofA continues to post incorrect negative info on our credit report. And Roundpoint hounds us monthly, despite the fact that we have been discharged in fed BK court. I hate these lenders and hope they, too, end up going under.