Executive Summary - 6 May 2008

By Christian Mullins

Executive Summary:

With the mortgage crises causing banks to tighten lending guidelines, more entrepreneurs are turning to credit unions and online lenders to secure financing.  Credit Unions made almost $12 billion in new business loans in 2007, and at least four new social lenders hit the market.  Prosper.com lent $81 million last year, but the percentage attributed to business loans wasn’t available.

The acquisition of Countrywide Financial by Bank of America may be in doubt.  Announced in January, Countrywide reported an $893 million loss in the first quarter of 2008, and Standard & Poors has since downgraded their debt to junk bond status.  With B of A facing $20-$30 billion in loan losses connected with the acquisition, they may attempt to renegotiate the acquisition or walk away altogether.

Robbed:

Peoples Community CU, Vancouver, Washington, Tuesday.  This is the branch’s second robbery in eight days, and is believed to have been perpetrated by the same individual.  A full video of the robbery is currently available here.

Arrested, Arraigned, Charged, or Sentenced:

• Richard Doyle has pleaded guilty to robbing six financial institutions a total of eight times in a nine month span, including American Heritage FCU in Hatfield, Pennsylvania.  The man, who netted $102,000 in the robberies, is undergoing a psychiatric evaluation and will be sentenced in about 60 days.
• A man who robbed an Affinity Plus CU in Moorhead, Minnesota last August was sentenced to 41 months in prison Tuesday.  While opening an account, David J. Dornbach pulled out a knife and demanded cash, walking away with almost $8,000.  He was apprehended in a hotel room later that day.
• Joe Clardy, arrested minutes after allegedly robbing City County CU in Pembroke Pines, Florida, on Friday has admitted to robbing three additional banks in the Hollywood, Florida area in recent weeks.  Information on a woman arrested with Clardy was not available at posting.