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Greeley bank auction may bury farmers
Today's sale of failed Greeley bank's notes "could be devastating"
By Miles Moffeit
The Denver Post
The federal government today will auction off 418 farm loans stranded on the books of failed Greeley-based New Frontier Bank.
The auction is believed to be the largest sale of farm notes since the aftermath of the 1980s savings-and-loan crisis, and it has many Colorado farmers fearful they will lose their property as a result.
Farmers suspect investors or banks will snap up their notes at fire-sale prices, then liquidate their collateral to score a quick profit.
"It could be devastating," said Bob Winter, a board member of the Colorado Farm Bureau. "That is what's going to happen with many of the loans. The buyers will take what equity they will get and move on."
The loans, originally valued at $455 million on the bank's books, will be auctioned over the Internet by the Federal Deposit Insurance Corp.
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http://www.denverpost.com/ci_13148011
FDIC auction in Colorado affects many livestock operations
(8/21/2009)
By Sally Schuff
Livestock operators and farmers in northeastern Colorado are awaiting news from the Federal Deposit Insurance Corp. (FDIC) to learn the outcome of an auction of some 418 agricultural loans it auctioned after the $2 billion failure of New Frontier Bank in Colorado.
The auction was held Aug. 18, but Washington FDIC spokesperson David Barr said it was apt to be two weeks after the sale before any information about the loan sales was available. He likened the waiting period to the time between the agreement to sell a home and the actual closing of the sale.
Meanwhile, many agricultural borrowers who were unable to refinance loans following FDIC's closure of New Frontier Bank feared that new lenders would buy their loans at liquidation prices and then be foreclosed. Colorado dairy operation and feedlot owners and pork producers are among those at risk. A banner headline on the Aug. 18 Denver Post read, "Auction may bury farmers."
http://www.feedstuffs.com/ME2/dirmod...C5C998E14EBC02
(8/21/2009)
By Sally Schuff
Livestock operators and farmers in northeastern Colorado are awaiting news from the Federal Deposit Insurance Corp. (FDIC) to learn the outcome of an auction of some 418 agricultural loans it auctioned after the $2 billion failure of New Frontier Bank in Colorado.
The auction was held Aug. 18, but Washington FDIC spokesperson David Barr said it was apt to be two weeks after the sale before any information about the loan sales was available. He likened the waiting period to the time between the agreement to sell a home and the actual closing of the sale.
Meanwhile, many agricultural borrowers who were unable to refinance loans following FDIC's closure of New Frontier Bank feared that new lenders would buy their loans at liquidation prices and then be foreclosed. Colorado dairy operation and feedlot owners and pork producers are among those at risk. A banner headline on the Aug. 18 Denver Post read, "Auction may bury farmers."
http://www.feedstuffs.com/ME2/dirmod...C5C998E14EBC02
Would they do such a thing? Farming is supposed to be the next great thing according to Rogers & Faber .
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