I've been keeping an eye on various local stock prices, and I noticed that as of 11:00 am this morning, Norstates Bank (Formerly Bank of Waukegan) has seen its price drop like a rock over the last 12 months from a little over $22 a share, to just under $2 a share.
Seems Norstates decided to try to get a piece of the TARP pie, and gave the US Treasury a chunk of Preferred Stock (Which never existed until TARP was created). There are strings attached to this 'pie' (which are plentiful and do not benefit those common stock investors) and it looks like those who were long-time stockholders are getting out while the getting is good.
not good news for the community.
marshmellow Wrote:I've been keeping an eye on various local stock prices, and I noticed that as of 11:00 am this morning, Norstates Bank (Formerly Bank of Waukegan) has seen its price drop like a rock over the last 12 months from a little over $22 a share, to just under $2 a share.
Seems Norstates decided to try to get a piece of the TARP pie, and gave the US Treasury a chunk of Preferred Stock (Which never existed until TARP was created). There are strings attached to this 'pie' (which are plentiful and do not benefit those common stock investors) and it looks like those who were long-time stockholders are getting out while the getting is good.
In your opinion how does that impact Waukegan since Fred Abdula, CEO of Norstates, is a good old boy?
Abdula and Norstates are involved with numerous Waukegan projects, like the money-pit Genesee Theatre. They are also large lenders to a number of major contractors and developers in Lake County (who are of course, either GOBs, or heavily indebted to GOBs).
The exact impact of TARP hasn't been felt, but I'm looking for announcements by Hyde & Co for GOB 'public-interest' projects financed by Norstates with the aid of TARP funds. That may sound OK to some, but this will mean more wasteful spending by the GOB, who previously couldn't contain themselves with just local property taxes and fees, now have access to U.S. Taxpayer monies. The GOBs will tout how these projects aren't costing the Waukegan taxpayers anything, but for those of you residents who have to fill out a 1040 every year, more of your bucks will go to more monuments to the GOBs. The 'bonus' will be that non-Waukegan residents will be paying for it too.