Reports have surfaced that suggest Great Florida Bank (GFB) is yet another financial institution that has continued to operate as if they weren't on the brink of collapse. According to sources close to the situation, the Bank's CEO has been presented with a proven restructuring solution by a leading Consulting Group which specializes in Financial Loss Mitigation and Disaster Aversion. It appears that GFB has instead decided to ignore this solution and forge ahead, despite an abysmal cash position coupled with a staggering amount of non-performing assets. At their current ratios, they are in violation of FDIC regulations, having too little capital to cover said Non-Performing Assets. 34 similarly under-capitalized Banks have been seized by the US Gov't in 2011 alone due to similar circumstances.
Shareholders have thus far have not been notified of this restructuring plan, and would undoubtedly support it, according to industry insiders. The plan involves the simultaneous transfer of bad assets from the Bank, a cash infusion, and a little-known strategy known only as "The Vega Method", which, according to sources, is a revolutionary securitized lending program that not only has FDIC clearance, it is documented by the FDIC as a proven method to strengthen an Institution's financial position.
The motivation behind CEO Mehdi Ghomesh's dereliction of duty to his shareholders is a mystery. We do know, though, that although the Bank has been hemorrhaging capital for years while the CEO collects a $500,000 salary. Will the real shareholders please stand up?
