Summary
Several top Institutional Investors have equity invested (albeit a extremely low percentage of capital invested), along side longtime directors, executives and investors in CASCADE BANCORP.
Analysis
To be sure, this capital investment of bank holding company stock is one of a very speculative nature, but sometimes faith, hope and charity supersede the fantasy and offer a blind eye to risk versus reward. Our firm has maintained the stock on its Active Index and personally I have accumulated shares of the bank holding company for a long term investment, (as well as short term trading) , with eyes wide open as we all realize fully the situation of risk and losing the entire value of the investment.
My personal bent towards faith, hope and charity with this investment comes from firsthand experiences of the benefits (and pitfalls) of community banks.
The bank management is addressing its lending portfolio and has brought in topnotch assistance, and the FDIC will be busy monitoring the banks progress and with community banks which have a much worse CRE to Capital ratios than the bank.
Mark Mariotti consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
