I am the marketing director for Mercer Capital, one of the leading business valuation and investment banking firms in the nation. We have an active financial institutions practice and given the pace of change in that industry right now, we'll be commenting on certain issues important to our clients.
Jay Wilson recently authored a short piece entitled "S Corporation Banks Beware." Money quote:
We found additional evidence that S corporation banks may be
experiencing the detrimental impact of additional capital volatility in
a review of bank failures. Of 8 total S corporation bank failures
since 1998, five have occurred since January 1, 2008, with three
occurring since December 1, 2008.
While it is too early to tell whether this evidence of increased
transaction activity and failures among distressed S corporations is
purely a coincidence or early indications of an emerging trend of
capital volatility for S corporation banks, this analysis prompted a
number of questions: ...
Click here to read the entire article.
Comments