Heard a rumor today that Homestreet Bank, which I knew as Continental Savings back in the “old” days, was getting its cease and desist from the FDIC. This would be a huge bummer, but I did predict it in my 2009 forecase, paragraph three: here.
Homestreet has a terrific residential mortgage operation, one of the best and most productive in the region. But somehow they got deep into contruction and other development lending, and now have an ugly balance sheet where their assets roughly equal their non-performing loans.
Update: Homestreet’s release on the issue, this afternoon (5/15): http://bit.ly/HjsuD