Jackson Jambalaya

Can you be more specific? Was it federal regulators or the tornado? I know they've been struggling under the unfair capital requirements that the Obama administration has placed on banks, but has anything official happened? BB

what happened to them? the link brings us back here to - no story. since you're not in the tornado predicting biz I assume you meant they were mismanaged and due to get closed down.....

In a nutshell it is spelled Dr. Sehti

http://www.clarionledger.com/apps/pbcs.dll/article?AID=2011104160340


Heritage Bank customers will be Trustmark National Bank customers when branches open Monday.

Carthage-based Heritage Banking Group was shuttered about 6 p.m. Friday and transferred to Trustmark, according to the state Department of Banking and Consumer Finance.

Heritage was closed because "it got to the point that they were insolvent and they couldn't come out," state banking commissioner John Allison said. "They had a severe amount of bad loans and no earnings."

He said Trustmark was one of several banks to consider the deal and had the best bid.

If FDIC closes a bank it will normally tell if someone has bought it, did not say last night on Heritage Bank. I follow this on Calculated Risk blog which is a finance and economic site.

How could Dr. Sethi crater a bank? Details, please.....

Trustmark Corporation Announces Acquisition of Heritage Banking Group, Carthage, Mississippi


Company Release - 04/15/2011 19:23


JACKSON, Miss.--(BUSINESS WIRE)-- Trustmark Corporation (NASDAQ:TRMK) announced that its wholly-owned subsidiary, Trustmark National Bank, has acquired the banking operations of Heritage Banking Group, Carthage, Mississippi, (“Heritage”) in a Federal Deposit Insurance Corporation (“FDIC”) assisted transaction. At December 31, 2010, Heritage Banking Group had approximately $224 million in total assets and $196 million in total deposits. Substantially all loans and other real estate acquired are covered by a loss share agreement in which the FDIC will reimburse Trustmark for 80% of the losses incurred. The assets covered by loss sharing agreements total approximately $156 million. Trustmark National Bank did not acquire any assets or liabilities of Heritage Banking Group’s parent holding company, First Heritage Corporation. Trustmark purchased Heritage for an asset discount of approximately $23 million and a deposit premium of 0.15%. The acquisition is expected to generate a modest one-time gain in the second quarter of 2011 and will be immediately accretive to Trustmark’s earnings per share and tangible book value per share.


ASSET DISCOUNT MEANS PAID TO TAKE IT.

By the way, did anyone notice how a year ago, Sethi and Ambrosino notified Madison County they were going to default on a TIF bond payment of nearly $90,000 or so that the county would have to pay if that happened and they paid it anyway. Voila, the FDIC later is issuing an order that just happens to focus on insider overdrafts, loans, and other dealings. Hmmmm...... I just wonder where that payment suddenly appeared from.

Next question and its an honest one: If FDIC had shut them down a year ago, would the taxpayers have saved money instead of paying out $50 million Friday?

King, this strictly a guess. The bank would have been very closely monitored in the past twelve months. I doubt things were allowed to get that much worse. In hindsight, there may be more accurate information available now than a year ago, but I doubt if the overall situation actually changed very much. This last year was mostly a grace period to allow the owners a chance to stablilize the business, but not to do further harm.

You are probably right.

Also, King, Dr. Sethi has been engaged in a lot of liquidity-generating activities over the last twelve months, like auctioning off real estate holdings through Nick Clark, etc. I know of three such properties and there were undoubtedly more. I have no idea how the auctions turned out but there were some pretty good locations on the block, and there might have been equity there, especially with some of the Bumpers locations.

Thanks. Thats why I'm asking. Its not like these guys will talk to you and give you the whole story. ;-)

You're half right. They'll talk to you. ;-)

Why do you not ask, and I am sure they will tell you. This was not TIF bonds it was PID taxes. If they did not pay their PID taxes then the county would not be able to pay their payment on the bond. Also find out how much they pay a year on those PID taxes and is Calhoun Station a PID and those landowners paying PID taxes. Can't to so this answer!!!

Does Sethi owe any of ya'll money like he does me?

He owes me some money, but for someone who has been in business for 40 years and started with nothing, I am not worried. I honestly feel like he got caught up in a very bad economy. He's not the only one... Trust me. Read his story on www.jackiesinternational.com. I have faith in the country & self made men like Dr. Sethi.

Does anybody know if the "Eiland Plaza" property in Louisville, MS was one of the auctioned properties?