The Directors of the Santa Ana Business Bank will now have more time on their hands for other activities
The Santa Ana Business Bank celebrated their grand opening on Nov. 29, 2007. Yesterday, the O.C. Register reported that “Santa Ana Business Bank will be acquired by Grandpoint Capital Inc., a bank holding company in Los Angeles, for an estimated $6 million.”
The idea behind this bank was positive, but from the start the bank was mired in controversy. And local blogs questioned whether the bank’s directors had chosen a good time to open their enterprise.
By 2008, the U.S. economy was crashing, and money to lend became hard to come by. And local businesses weren’t looking for cash. Many were looking for the exit. And the Santa Ana Business Bank shares dropped from $10 to $4.40, according to online reports. Currently they are valued at $3.50, according to NASDAQ.
It didn’t help that there were reports that the bank’s president had a chauffered Escalade. And that the main investor in the bank, George Pla, had apparent conflicts of interest given that a Santa Ana Councilman, Carlos Bustamante, was on the bank’s board, as were several Santa Ana City Commissioners.
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Are any of us surprised about this MIS-adventure. Which one of the “board members” had any banking experience. Can you imagine if Amezcua is elected as Mayor; will he run the City into the ground as well?
I think there is more to this story, especially with Metzler allegedly leaving the Santa Ana Business Alliance…
I agree with #1. There has to be more to this story. Santa Ana City Commissioners with no banking experience on the SABB Board. A Bank Board Member receiving a lucrative contract award from City Halleven though he was the least qualified. Metzler leaving the Santa Ana Business Alliance when he has boasted for years how under his leadership it became very successful. I think the SABA owns real estate too. Maybe Metzler’s investments for the SABA tanked. Maybe Metzler supported the wrong candidate for mayor and was to told to leave SABA willingly or get booted publicly.
This doesn’t pass the smell test. One more thing. Pulido has done a fine job all by himself ruining the City.
it’s rumored there is a conspiracy here. the CEO of the bank since day one planned to sell the bank instead of growing it. so for over 2 years he did not do anything. he only hired incompetent sales people and whenever the bank board inquired about the bank’s lack of performance he simply fired the sales team leader. it happened several times already. my insider source told me he does not go out to find business either. he instead spent all day long clipping news article, reading email and having his secretary typing his hand-written email responses. as a result of his incompetence and lack of performance, the bank’s stock price quickly went down to 30 cents on a dollar. now acting as the savior, he offers investors and board members an opportunity to limit the losses by selling the bank to a holding company company for 50 cents on a dollar. as they have no experience in banking and no other choices, the board agreed to sell the bank. the acquiring company’s CEO is his long-time friend.
so, in short his buddy buys the bank for half the price and he pockets generous incentives. the board thanks him for lessening the losses. but the real losers are the investors who entrusted the board members and are losing half of their investments and the employees who have not received a raise in 3 years and are facing umemployment.
if the investors are smart they should sue the CEO and the whole board for lack of performance and lack of supervision to recoup some of their investments. if the board are smart they should fire him and find a more competent CEO who can turn the bank around. other banks opened during the same period already grew several times larger than this bank.
Listen Fruiti Pebbles…you should find something better to do, other than talking smack aobut others. I know that talking bad about others probably strengthens your ego, but get a real life.
for all of you who took the time to write all this trash…remember that your life will be measured the same way you measure the life of others…