Amcore Bank Plan Denied
Wednesday, November 11, 2009
Reported by: Alex Shabad
Wednesday, Nov 11, 2009 @08:24pm CST
"Amcore Bank, destroying dreams, fulfilling nightmares, one customer at time”, those are signs Paul Benson’s has posted outside his house.
He’s had a loan from the bank for the past six years.
"They’ve fired so many people there was no banker to work with me on a loan that was renewed every year" says Benson.
Benson says Amcore bank is not going to renew his business loan, forcing him to come up with all the money now.
Amcore needs to raise capital, but its current plan to do so was just denied by federal regulators
In a letter dated, November 4th the office of the comptroller said Amcore's plan is "not acceptable."
Rockford college economics professor explains why the bank's capital plan was denied.
"The plan they had was not convincing enough in terms of raising the amount of capital in order to stay above the line the regulators draw" says professor Fred Rezazadeh.
According to the security exchange commission, Amcore bank has dealt with several consecutive quarterly losses.
Last quarter the bank was down 156 million dollars.
Amcore has taken several steps to resolve the financial problems such as cutting executive salaries and reducing the work force.
It also is selling off certain branches.
Economic experts say one of the group's most affected by the financial problems are the shareholders, because the stock continues to drop.
"The shareholders are more concerned because the price of a share has gone from 4 dollars to 36 cents this morning" says Rezazadeh.
Still, some loyal customers say they will continue to ride the wave.
"I’m ready to panic and run yes but I don't think I will yet I’ll wait one more day" says Amcore bank customer Bob Whipple.
While others like Benson look for a new place to get a loan.