1. Nason & Nason October 28, 2010 Nason Temp Solutions
Hot Jobs Miami
There is not all doom and gloom out there on the job horizon. We have noticed that SBA jobs are hot and we expect the
trend will continue in Miami-Dade and Broward as banks seek to diversify from their real estate portfolios. Speaking of real
estate, the recovery is slowly opening up room in the larger real estate management companies for higher level positions in
Financial Reporting and Accounting. Banks themselves are slowly creeping back into the market selectively. Other hot jobs
this month are with Broker-Dealers as more boutique firms are opening up shop in South Florida. (See Other Job
Opportunities.)
280 Bank Failures and Counting-Small Business the Real
Loser
In the past two years we have had more banks failing than ever and most observers estimate we will shrink further from
8,000 banks to 5,000. Will the system be any stronger and will we be better off? The eventual loser will be Main Street and
not Wall Street as much of the shrinkage will continue to be in community banks, which are the backbone of credit for small
businesses. For all of their lip service, the big banks really don’t care about the small client and applying online or over the
phone to a processor in cyber land increases the difficulty for small businesses to have access to their banker. Ninety-four
percent of the bank failures are real estate related but what is the cause? Loose credit standards or flaws in the system?
When Congress changed the rules on the S&L’s in the late 80’s they allowed for the creation of the “Country Wides” and the
securitization and packaging of real estate loans. Local banks lending local money in the community hasbeen a traditional
engine for job creation and growth. Real estate is very much a part of this success.
The magnitude of the real estate collapse caught the community banks unprepared and the government rather than seek
means to assist these banks swooped down on them to thin them out. Where were these regulators when they should have
been reviewing and enforcing asset quality as the world watched the bubble grow? They have been using every available
body to enforce Patriot Act money laundering standards, diverting the banks from business at-hand and requiring them to
pour excessive resources into monitoring and compliance, sometimes with as much as 20% of the entire staffs for this effort.
So who is at fault? We know on whose shoulders the burden is resting as we wait for the weaker of the pack to be picked off
one by one while Main Street and small business take it on the chin.Comment on this article
Sweetheart Bank Deals Are Done
Everyone wants a deal and to become an instant millionaire. And it seems people wanting to buy a bank are crawling out of
the woodwork. Of course along with that picking up real estate at 20 cents on the dollar would be nice. Consequently,
capitalists are sitting on the sideline wanting for the apple to fall in their lap. The FDIC has gotten wise and more selective.

2. Even if one can get a deal, it is not as rich and the chances of being selected from the bidding process if a bank falls by the
wayside is slim, unless you have “friends” in high places. Buying a bank with problems is equally difficult as investors not
only have to buy the equity from existing shareholders but need to put a slug of fresh capital in to stabilize and grow the
bank. Then there is the problem of profitability. Not easy in today’s banking market. Even more difficult is knowing what you
are buying or selling as most banks have a handle on their real estate problems but it is a moving target. These issues
challenge existing shareholders who are being pressed to put in more capital. Is it good money after bad and where is the
bottom? All of this is in a terribly depressed commercial real estate market and banks are on the clock in a race with
regulators. It’s a shame that it is so difficult to match those that have and want to sell with those that want to buy. In any
case the big get bigger and the sweetheart deals are done.Comment on this article
FDIC Loss Sharing for the Fortunate
What is the crux of the sweetheart deals that the FDIC has to offer? The key is in the loss sharing agreements. It has grown
to a multi-billion dollar program. Originally introduced in 1991, loss-sharing agreements have now become a standard tool of
the FDIC for moving failed bank assets into the private sector. It is a common feature of purchase agreements. Here is how
it works. Read more
Spanish Banks Strong force in Miami banking but will it
last?
The explosion of Spanish banks and the dreams of converting Miami into the new Madrid have hit a road block. Spanish
banks are by far the dominant influence on the Miami banking market, famed for being a Latin American banking center.
Hidden in the local landscape, Spanish banks have gobbled up City National, Total Bank, and Mellon United among others.
They are suffering indigestion as real estate credit issues and other unsuspected problems have forced them to put in more
capital and slow down their growth. Coupled with similar problems back home, the Spanish banks hope for a revival of the
empire gives us cause for reflection.
Growth of the Cajas (the Spanish equivalent to savings and loan banks) has been slowed and the Spanish government has
sought to reduce their number, which account for about half of the banking system as one or another appear on almost
every corner in Spain. From more than 40 Cajas, less than 15 will remain. Caja Madrid (one of the largest) is merging with
Bancaja; Caja Galicia with Caixa Nova and CAM is also merging.
The forced consolidation will slow their plans in Miami as well. Spanish banks nevertheless will be a major contributory force
in the Miami banking scene as they control 3 large local banks - Mellon United, Total and City National. It is only a question
of time until Compass Bank owned by BBVA, present in north Florida, and Sovereign Bank owned by Santander are here as
well. Like everything else in today’s economy, survival is success and growth will have to wait but it will come and with it
Spain will lead the way in banking as well as soccer. Comment on this article (See the list of Spanish banks in Miami.)
On The Move-Where Your Friends Are Hanging Out
Leif Gunderson has just been appointed as the new President of Sunstate Bank. Total Bank has added an In House
Wealth Management Division to be led by Joel Palatnik, previously with Legacy Wealth Management. In their effort to
expand nationally Barclays Wealth has added 3 senior bankers for their Miami office. Tony Esses arrives after 24 years at
HSBC as a Director, joined by James Hafele and Robert Sperber of Morgan Stanley Smith Barney. The Bank of Miami has
hired Tim Christian, previously with The Bank of Coral Gables as their new Credit Manager. Chuck Klenk, formerly with
Wachovia/Wells Fargo has been brought on board by Bank United as the SVP for Corporate Commercial Banking. Rene
Negron, formerly of AXA Advisors is now with International Planning Group.Comment here
A lot going on. Feel free to make comments on our blog. Give us some suggestions on topics you would like to see covered
and let us know who else is on the move for our next issue of .
Contact us at main@nasonsearch.com
www.NasonTemp.com | 95 Merrick Way | Coral Gables, FL | 33134 | (305) 476-1000 | | www.NasonSearch.com