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truehollywood
Nitroglycerin


Joined: 24 Jan 2008
Posts: 755
Location: CA

Franklin Bank Corp.
PostPosted: Tue May 20, 2008 4:05 pm Reply with quoteBack to top

Anthony Nocella has relinquished his job as chief executive officer of Franklin Bank Corp. in the wake of a 10-week internal investigation that the bank holding company said uncovered numerous accounting errors related to residential mortgage loans.

Houston-based Franklin (NASDAQ: FBTX) also said in a release issued after markets closed on May 19 that the U.S. Securities and Exchange Commission is conducting an investigation into accounting errors and other matters.

While many Texas banks have weathered the credit crunch storm in the wake of the subprime mortgage market meltdown of 2007, Franklin's stock has been pounded in the past six months because of its high loan exposure through its banking subsidiary, Franklin Bank ssb, in depressed markets such as Florida and Nevada.

Lewis Ranieri, the bank's chairman is now interim CEO. Nocella, a founder of the bank, will remain as a director and chairman of the bank subsidiary and will retire by the end of the year.

Alan Master is Franklin's interim president and will retain the title until a new CEO is chosen.

The SEC inquiry comes on the heels of a 10-week internal investigation that the bank said uncovered a variety of accounting errors, largely related to residential mortgage loans.

The company has been unable to file its first-quarter 10-Q report because of the internal audit investigation and is also in the process of restating third- and fourth-quarter 2007 results.

Shares of Franklin dipped below $1 when the stock market opened Tuesday after closing at $1.01 on May 19. The shares have lost almost all of their value since trading near $20 as recently as February 2007.
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mtgsherpa
Flash in the pan


Joined: 02 May 2008
Posts: 39

Franklin Bank
PostPosted: Tue May 20, 2008 8:48 pm Reply with quoteBack to top

I'm surprised it got to this point, Lewis is too smart...according to people in Texas, Lewis was good friends with Anthony, who has worked for him before at another institution. Then again it doesn't surprise me from what others have said about the way the bank has mismanaged the mortgage side of things. Dan Cooper is head of the mortgage side and came from a secondary market background, and is running production, worked for Lewis before. Russell McCann is the accountant, and also worked for him before. The plan was to build it up by buying community banks and sell it. Well, I guess it's a fire sale now, but who would touch it at this point trading under a buck.
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truehollywood
Nitroglycerin


Joined: 24 Jan 2008
Posts: 755
Location: CA

Re: Franklin Bank Corp.
PostPosted: Tue May 20, 2008 8:59 pm Reply with quoteBack to top

They were all buddies who decided to run a bank. I don't think they understood how difficult running a bank actually is when competition is fierce. Offering warehouse lines wasn't a smart idea either. It got them into some trouble. I hope they use this an example in banking classes in college- of what not to do.
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mtgsherpa
Flash in the pan


Joined: 02 May 2008
Posts: 39

Franklin Bank
PostPosted: Tue May 20, 2008 9:07 pm Reply with quoteBack to top

The formula didn't work this time around, and there is plenty of blame to go around. I wouldn't be surprised to see other go down with their finger prints on this. Sitting around playing Liars poker didn't help either.
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bcoen
Dud?


Joined: 01 Jan 1970
Posts: 8

Franklin Bank has the worst senior management team ever
PostPosted: Wed May 21, 2008 12:30 am Reply with quoteBack to top

None of them know what they are doing. I worked for this bank for some time and I have never seen this level of incompetence at any other institution I've worked for. This is a small time bank that is hanging on by a thread. Sharon Koehl, who is the Senior VP of compliance as she is so quick to tell people, has made some poor choices with regards to lending. In my personal opinion, she is completely clueless and a miserable human being who hates her life.
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soulja_boy
Dud?


Joined: 21 May 2008
Posts: 3

Re: Franklin Bank has the worst senior management team ever
PostPosted: Wed May 21, 2008 2:53 am Reply with quoteBack to top

bcoen wrote:
None of them know what they are doing. I worked for this bank for some time and I have never seen this level of incompetence at any other institution I've worked for. This is a small time bank that is hanging on by a thread. Sharon Koehl, who is the Senior VP of compliance as she is so quick to tell people, has made some poor choices with regards to lending. In my personal opinion, she is completely clueless and a miserable human being who hates her life.


I'm also a former Franklin Bank employee. Before corporate officially closed our branch, I first found out I was no longer employed when I logged into our HR adminstration site and saw "Former Employee" at the top of the page. No phone call, no e-mail, no mail. I thought it was a spineless was of doing things. Here's some irony: our branch was constantly told it was out of compliance. Is that the kettle calling the pot black? Seriously, who was corporate to tell us about compliance?

I felt like some of the decision makers there made choices out of spite rather than doing things the right way. Small matter now...I'm pretty sure I'll be around long after Franklin Bank has deceased.

How can these guys NOT be on the "Ailing List"?
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Robin
Sentinel


Joined: 30 Aug 2007
Posts: 3416
Location: Loveland, OH

Re: Franklin Bank has the worst senior management team ever
PostPosted: Wed May 21, 2008 3:25 am Reply with quoteBack to top

souljaboy wrote:
How can these guys NOT be on the "Ailing List"?


It takes more than a forum thread and heresay. Email our tip line, pm or email me, Randall... Anything we get has to be verified and angry ex-employees are often both the best and worst sources of information. We will contact the company, but your tips are strictly confidential. Fair enough?

_________________
"A signature is a little text that can be added at the bottom of your posts." Folks who know ME know... I can't be limited to "a little" text. Twisted Evil or Snarky
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soulja_boy
Dud?


Joined: 21 May 2008
Posts: 3

Re: Franklin Bank has the worst senior management team ever
PostPosted: Wed May 21, 2008 4:00 am Reply with quoteBack to top

Robin wrote:
souljaboy wrote:
How can these guys NOT be on the "Ailing List"?


It takes more than a forum thread and heresay. Email our tip line, pm or email me, Randall... Anything we get has to be verified and angry ex-employees are often both the best and worst sources of information. We will contact the company, but your tips are strictly confidential. Fair enough?


You don't think an article from a fact-finding institution like Reuters saying "Franklin Bank faces SEC probe" is more than "heresay"? If you think I'm premature in wondering why Franklin is not on the Ailing list, then explain how you have Countrywide on the Imploded list. CW should be on the Ailing list at worst. They're still operating. As far as I know, the CW brass is still in tact unlike Franklin Bank (in the near future).
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bcoen
Dud?


Joined: 01 Jan 1970
Posts: 8

Souljaboy has a point
PostPosted: Wed May 21, 2008 5:14 am Reply with quoteBack to top

To add to Souljaboy's point; we can examine the facts.

-FBTX is trading at $1, an astonishing 95% loss from where it was a year ago.
-The SEC has issued a probe into their mortgage lending accounting practices (ever heard of Enron?)
-Franklin has failed to file their quarterly report

These are facts and not simply hearsay. In addition, there is a lot of other evidence that happens to be circumstantial in nature. People are convicted of murder with ONLY circumstantial evidence.

If it seems like I am anxious to see Franklin on the ailing list, I am. I feel that the Implode-O-Meter is allowing itself to be pushed around by certain institutions. Robin states that they "will contact the company." What incentive does the company have to tell you the truth? Of course they are going to say everything is fine. I believe many banks have done this right up until an employee shows up to find a set of locked doors.

It dissapoints me to see that the once so innovative people at the Implode-O-Meter are hesitant in labeling a so clearly endangered company as "ailing."
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truehollywood
Nitroglycerin


Joined: 24 Jan 2008
Posts: 755
Location: CA

Re: Franklin Bank Corp.
PostPosted: Wed May 21, 2008 12:15 pm Reply with quoteBack to top

Bcoen and soul_ja, this somewhat smallish bank would get there as soon as someone from the inside of the bank emails Robin. You have to still have friends there. Have them email Robin. This bank has been having trouble for months and months. If you have been following the forum, why didn't you put something out there before I did?
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