Todays Newspaper Story Upon The Failure Of Quartz Mountain Aerospace Inc.:
"State and federal bank regulators have placed First State Bank of Altus under supervision for hazardous lending, inadequate capital and earnings and an excessive level of bad loans, according to an order made public on Friday."
"The bank lost $5 million in 2008. On Dec. 31,it had more than $17 million in loans listed as nonaccrual, and another $8.7 million in loans were more than 90 days past due."
"First State Bank made major loans to Quartz Mountain Aerospace, an aircraft manufacturer that has defaulted. It also loaned millions to an out-of-state residential development project that is mired in bankruptcy, bank President Larry McLaughlin said."
"Bank officers have developed a four-point plan to restore the bank's balance sheet, McLaughlin said."
My question/s is, just what is the "four-point plan" and how can a small bank recover monies from QMA when they will soon file for Bankruptcy? Also, what of The First National Bank and many others who have added funds to this venture? Then you have the City Council who voted approval for this venture, knowing this wasn't going to fly and fail?
I still see some hanky panky being played under the table, with favors being passed all around. The State Attorney General's Office should investigate this matter ASAP.
UPDATE: It was just reported, (28 Feb) QMA has in fact, filed for bankruptcy out of state. Although it wasn't reported in what state the bankruptcy was filed, I'm thinking it had to be in Coffeeville, Kansas since they moved thousands of dollars in equipment to that location. If you happen to spot a white elephant walking about, just pay no attention because it'll most likely be followed by a number of City Council Members holding onto its tail.
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