Anyone looking? This weekend, I got a pitch from the gurufocus Ben Graham: Net-Net Newsletter pitching a bank that is in the process of liquidating, and currently selling for 56% of book value. This is a bank with a checkered past that was heavily involved in subprime lending. The bank was required to wind down all subprime products and is in the process of liquidating. The bank has sold their loan portfolio and deposits to a Pennsylvania bank, which is pending approval. The bank is selling for 56% of adjusted book value. Upon sale completion book value will be mostly liquid cash.This month's pick:1. Has submitted a liquidation plan to the FDIC to be executed by Dec 31st 2012.2. Entered into a transaction to sell loans and deposits to Bryn Mawr Trust. All other liabilities can be settled by cash on hand.3. An adjusted book value of $3.48 with a last trade of $1.95A little Googling and a review of news releases from Bryn Mawr led me to First Bank of Delaware, FBOD.-Rob
There appears to be a federal prosecutor is working on a charge against the company that seeks monetary damages. They have a press release on this dated in April or May and it is still on going according to the last q in August which provides more detail. Thanks for the idea but this legal issue pushes the idea outside my comfort zone.
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