Lowden Should Look in the Mirror Before Pointing Fingers
LOWDEN’S BAILOUT HYPOCRISY
Sue Lowden likes to brag that neither she nor her companies have taken any bailout funds. In truth, Lowden until very recently served a member of Colonial Bank’s Nevada Board of Directors, and Colonial did in fact apply for and was given approval to receive funds under the Troubled Asset Relief Program, a program which she defended, saying it would be hard to vote against. After applying for federal bailout funds, Colonial Bank came under investigation by the FBI for suspect accounting and possible mortgage-related criminal violations tied to their application for TARP funding. The bank has since been seized and sold off during the course of the investigation, marking the largest bank failure of 2009.
Sue Lowden Was On The Nevada Board Of Directors For Colonial
Sue Lowden’s Biography Mentions That She Sat On Nevada Board of Directors of Colonial Bank. According to a brief biography of Suzanne Lowden filed in Archon Corporation’s Annual Report to the SEC dated January 9, 2009, “She is also a founding board member of Commercial Bank of Nevada which was acquired by Colonial Bank in 1998. Mrs. Lowden sits on the Board of Directors of Colonial Bank of Nevada.” [Archon Corporation, SEC Form 10-K, 1/9/2009]
Sue Lowden Was Specifically Named On Colonial Bancgroup Shareholder Report. Sue Lowden was listed among the names of the Nevada Board of Directors in a report to shareholders for the year ended December 31, 2007. [Colonial Bancgroup 2007 Annual Report]
Sue Lowden Filed Amended Financial Disclosure To Reveal Her Role With Colonial Bank. In an amendment filed to her personal financial disclosure, Sue Lowden listed “Colonial Bank Advisory Board” as a position held from June of 1998 to February of 2009. Lowden also disclosed a $350 fee for her roles on the Colonial Bank Advisory Board under her sources of income.[Lowden Amended Financial Disclosure, 12/16/2009]
Sue Lowden Also Had Major Line Of Credit Through Colonial
Sue Lowden’s Casino Company Maintained $29 Million Line Of Credit With Colonial. According to an SEC filing submitted in the wake of Colonial Bank’s collapse, Sue and Paul Lowden guaranteed a $29,000,000 line of credit between their casino company, Archon Corporation, and Colonial Bank. This line of credit was extended by BB&T when BB&T took over the collapsed Colonial Bank. [Archon Corporation Current Report Form 8-K, Exibit 99.1, 9/2/2009]
Sue Lowden Says She Didn’t Take Any Bailout Money…
Lowden Said “We Didn’t Take Any Bailout Or Stimulus Money.” While discussing some of Sue Lowden’s potential political vulnerabilities, the Elko Daily Free Press reported that Lowden said that the media might show pictures of her big house, but “we didn’t take any bailout or stimulus money.” [Elko Daily Free Press, 10/2/2009]
…But Her Bank Applied For Bailout Money…
Colonial Bank Applied For TARP Funds In November of 2008. In November of 2008, Colonial Bancgroup issued the following statement in a press release: “The Colonial BancGroup, Inc. is making the following announcement in order to correct what it perceives to be misinformation in the market place. Colonial has, in fact, applied for participation in the TARP Capital Purchase Program. Its application was delivered to the FDIC in a timely manner. While assurances cannot be given as to the outcome of the application, Colonial has been given no information that would lead it to doubt that its application is not being processed through the normal channels. At this time, it is not possible to project when we will receive an answer to the application.” [Colonial Bank Press Release 11/13/2008]
Colonial Bank Announced Preliminary Approval To Receive TARP Funds. In Decenber of 2008, Colonial BancGroup sent out the following statement announcing their preliminary approval to receive funds from the Troubled Asset Relief Program (TARP). “The Colonial BancGroup, Inc. today announced that it has received preliminary approval to participate in the United States Treasury Department’s capital purchase program. Colonial BancGroup will receive $550 million from the Emergency Economic Stabilization Act of 2008 aimed at enhancing the economy by restoring liquidity and increasing financing to businesses and consumers.” [Colonial Bank Press Release 12/2/2008]
…And Even Applauded The TARP Legislation
Colonial Bank CEO Supported And Applauded Treasury Department’s Efforts. In December of 2008, Colonial Bancgroup CEO Robert Lowder issued the following statement in a press release: “We fully support and applaud the actions by the U.S. Treasury Department to support stability, safety and soundness of the nation’s financial institutions,” said Colonial BancGroup Chairman, CEO and President Robert E. Lowder. “The $550 million in new capital will enhance our capital cushion and will allow Colonial Bank to meet our customers’ financing needs with additional lending activity throughout our five state footprint.” [Colonial Bank Press Release 12/2/2008]
Colonial Was Seized And Shut Down By Regulators Amid Allegations Of Fraud In Their Bailout Application
Department of Justice Investigated Colonial For Possible Criminal Violations and “Suspect Accounting.” According to an August, 2009 article in the Orlando Sentinel, “Colonial Bancgroup confirmed Friday that it is being investigated by the Justice Department for possible mortgage-related criminal violations and by the Securities and Exchange Commission for suspect accounting practices tied to its request for federal bailout money.” [Orlando Sentinel, 8/7/2009]
Colonial Bank Was Shut Down By Federal Regulators, Nevada Operations To Be Sold Off. “Colonial Bank’s parent, Colonial Bancorp, received a cease-and-desist order from the Federal Reserve and Alabama’s bank regulator to address its capital, liquidity and allowance for loan losses. Colonial Bank’s Nevada operation is in the process of being sold to Global Consumer Acquisition Corp., including its 12 branches in Las Vegas.” [Las Vegas Sun, 8/14/2009]
Colonial Bank Had $850 Million In Deposits In Nevada At Time Of Seizure. According to an August 18, 2009 article in the Las Vegas Review Journal, “Regulators seized Alabama-based Colonial BancGroup, which had 21 branches and $850 million in deposits in Nevada. Southeastern giant BB&T took over the former Colonial branches.” [Las Vegas Review-Journal, 8/18/2009]
Colonial Bank Collapse “Marks The Largest Bank Failure Of 2009.” “BB&T Corporation of North Carolina took over the branches and deposits of Colonial BancGroup on Friday, averting a major financial collapse with a government-assisted deal that could cost the federal deposit insurance fund billions of dollars. The takeover agreement, announced by the Federal Deposit Insurance Corporation, marks the largest bank failure of 2009 and could be the most costly since the sudden failure of IndyMac Bancorp last year.” [New York Times, 8/14/2009]
Maybe That’s Why Lowden Defended The Bank Bailouts Of 2008
Lowden Defended The Bank Bailout Vote. In a profile article in the Nevada Appeal, Lowden revealed that she couldn’t say she would have voted against the bailout. “Lowden had different reactions to the bank bail-out legislation and the stimulus package. On bail-out spending: ‘It's easy to say, no, I wouldn't have voted for it. But people were panicked, we were facing collapse — that's what they were saying. It's easy to say from a distance I would have voted no, but I can't do that.’” [Nevada Appeal, 1/17/2010]
Lowden Should Look in the Mirror Before Pointing Fingers
LOWDEN’S BAILOUT HYPOCRISY
Sue Lowden likes to brag that neither she nor her companies have taken any bailout funds. In truth, Lowden until very recently served a member of Colonial Bank’s Nevada Board of Directors, and Colonial did in fact apply for and was given approval to receive funds under the Troubled Asset Relief Program, a program which she defended, saying it would be hard to vote against. After applying for federal bailout funds, Colonial Bank came under investigation by the FBI for suspect accounting and possible mortgage-related criminal violations tied to their application for TARP funding. The bank has since been seized and sold off during the course of the investigation, marking the largest bank failure of 2009.
Sue Lowden Was On The Nevada Board Of Directors For Colonial
Sue Lowden’s Biography Mentions That She Sat On Nevada Board of Directors of Colonial Bank. According to a brief biography of Suzanne Lowden filed in Archon Corporation’s Annual Report to the SEC dated January 9, 2009, “She is also a founding board member of Commercial Bank of Nevada which was acquired by Colonial Bank in 1998. Mrs. Lowden sits on the Board of Directors of Colonial Bank of Nevada.” [Archon Corporation, SEC Form 10-K, 1/9/2009]
Sue Lowden Was Specifically Named On Colonial Bancgroup Shareholder Report. Sue Lowden was listed among the names of the Nevada Board of Directors in a report to shareholders for the year ended December 31, 2007. [Colonial Bancgroup 2007 Annual Report]
Sue Lowden Filed Amended Financial Disclosure To Reveal Her Role With Colonial Bank. In an amendment filed to her personal financial disclosure, Sue Lowden listed “Colonial Bank Advisory Board” as a position held from June of 1998 to February of 2009. Lowden also disclosed a $350 fee for her roles on the Colonial Bank Advisory Board under her sources of income.[Lowden Amended Financial Disclosure, 12/16/2009]
Sue Lowden Also Had Major Line Of Credit Through Colonial
Sue Lowden’s Casino Company Maintained $29 Million Line Of Credit With Colonial. According to an SEC filing submitted in the wake of Colonial Bank’s collapse, Sue and Paul Lowden guaranteed a $29,000,000 line of credit between their casino company, Archon Corporation, and Colonial Bank. This line of credit was extended by BB&T when BB&T took over the collapsed Colonial Bank. [Archon Corporation Current Report Form 8-K, Exibit 99.1, 9/2/2009]
Sue Lowden Says She Didn’t Take Any Bailout Money…
Lowden Said “We Didn’t Take Any Bailout Or Stimulus Money.” While discussing some of Sue Lowden’s potential political vulnerabilities, the Elko Daily Free Press reported that Lowden said that the media might show pictures of her big house, but “we didn’t take any bailout or stimulus money.” [Elko Daily Free Press, 10/2/2009]
…But Her Bank Applied For Bailout Money…
Colonial Bank Applied For TARP Funds In November of 2008. In November of 2008, Colonial Bancgroup issued the following statement in a press release: “The Colonial BancGroup, Inc. is making the following announcement in order to correct what it perceives to be misinformation in the market place. Colonial has, in fact, applied for participation in the TARP Capital Purchase Program. Its application was delivered to the FDIC in a timely manner. While assurances cannot be given as to the outcome of the application, Colonial has been given no information that would lead it to doubt that its application is not being processed through the normal channels. At this time, it is not possible to project when we will receive an answer to the application.” [Colonial Bank Press Release 11/13/2008]
Colonial Bank Announced Preliminary Approval To Receive TARP Funds. In Decenber of 2008, Colonial BancGroup sent out the following statement announcing their preliminary approval to receive funds from the Troubled Asset Relief Program (TARP). “The Colonial BancGroup, Inc. today announced that it has received preliminary approval to participate in the United States Treasury Department’s capital purchase program. Colonial BancGroup will receive $550 million from the Emergency Economic Stabilization Act of 2008 aimed at enhancing the economy by restoring liquidity and increasing financing to businesses and consumers.” [Colonial Bank Press Release 12/2/2008]
…And Even Applauded The TARP Legislation
Colonial Bank CEO Supported And Applauded Treasury Department’s Efforts. In December of 2008, Colonial Bancgroup CEO Robert Lowder issued the following statement in a press release: “We fully support and applaud the actions by the U.S. Treasury Department to support stability, safety and soundness of the nation’s financial institutions,” said Colonial BancGroup Chairman, CEO and President Robert E. Lowder. “The $550 million in new capital will enhance our capital cushion and will allow Colonial Bank to meet our customers’ financing needs with additional lending activity throughout our five state footprint.” [Colonial Bank Press Release 12/2/2008]
Colonial Was Seized And Shut Down By Regulators Amid Allegations Of Fraud In Their Bailout Application
Department of Justice Investigated Colonial For Possible Criminal Violations and “Suspect Accounting.” According to an August, 2009 article in the Orlando Sentinel, “Colonial Bancgroup confirmed Friday that it is being investigated by the Justice Department for possible mortgage-related criminal violations and by the Securities and Exchange Commission for suspect accounting practices tied to its request for federal bailout money.” [Orlando Sentinel, 8/7/2009]
Colonial Bank Was Shut Down By Federal Regulators, Nevada Operations To Be Sold Off. “Colonial Bank’s parent, Colonial Bancorp, received a cease-and-desist order from the Federal Reserve and Alabama’s bank regulator to address its capital, liquidity and allowance for loan losses. Colonial Bank’s Nevada operation is in the process of being sold to Global Consumer Acquisition Corp., including its 12 branches in Las Vegas.” [Las Vegas Sun, 8/14/2009]
Colonial Bank Had $850 Million In Deposits In Nevada At Time Of Seizure. According to an August 18, 2009 article in the Las Vegas Review Journal, “Regulators seized Alabama-based Colonial BancGroup, which had 21 branches and $850 million in deposits in Nevada. Southeastern giant BB&T took over the former Colonial branches.” [Las Vegas Review-Journal, 8/18/2009]
Colonial Bank Collapse “Marks The Largest Bank Failure Of 2009.” “BB&T Corporation of North Carolina took over the branches and deposits of Colonial BancGroup on Friday, averting a major financial collapse with a government-assisted deal that could cost the federal deposit insurance fund billions of dollars. The takeover agreement, announced by the Federal Deposit Insurance Corporation, marks the largest bank failure of 2009 and could be the most costly since the sudden failure of IndyMac Bancorp last year.” [New York Times, 8/14/2009]
Maybe That’s Why Lowden Defended The Bank Bailouts Of 2008
Lowden Defended The Bank Bailout Vote. In a profile article in the Nevada Appeal, Lowden revealed that she couldn’t say she would have voted against the bailout. “Lowden had different reactions to the bank bail-out legislation and the stimulus package. On bail-out spending: ‘It's easy to say, no, I wouldn't have voted for it. But people were panicked, we were facing collapse — that's what they were saying. It's easy to say from a distance I would have voted no, but I can't do that.’” [Nevada Appeal, 1/17/2010]
