It appears to be a little bit academic at this point, but Tennessee Commerce Bancorp executives on Wednesday told investors that it has received a formal agreement from the Tennessee Department of Financial Institutions that outlines a host of capital level, asset management and governance steps it must take to right its ship. Many of the terms and remedies prescribed are the same ones called for earlier this year by the Federal Deposit Insurance Corp.
Dover Motorsports, which in early August said it is preparing to shut down the Nashville Superspeedway, last week reported third-quarter results that included the cost of that decision. Between taking a non-cash charge on a writedown of the speedway's value and picking up the expected tab for bond payments to Wilson County, the tab comes to almost $18 million.
The FDIC is closing an Illinois office — one of three — set up a few years ago to handle the wave of bank failures. As for the prospect of doing the same in Jacksonville, where regulators are working their way through the troubles of Southeastern banks? Yeah, that's not gonna happen soon.
Residential real estate researchers CoreLogic say the amount of delinquent mortgages in the Nashville area fell slightly in June to 5.25 percent. That's their lowest level since September 2009. On the flip side, the ratio of foreclosures to total loans rose a bit to 1.80 percent, in line with their 2011 average, and a number of ZIP codes in Davidson County are seeing higher rates since the beginning of spring.
SEE ALSO: Was that the worst of it? from three months ago
Workout specialist Bob Mendes at MGLaw has a follow-up on our piece from last week on the state of local banks. Noting that the banks posting better numbers are also the ones he and his fellow attorneys are generally having an easier time dealing with, Mendes writes that predictability, realism and financial health are aligning more and more.
On the flip side, lenders who are still catching up to the lower values of borrowers' collateral are acting a little more erratically and — still — looking to kick the can down the road. But that “live to fight another day” strategy relies on a lot of macroeconomic hope and not much more.
Not that anyone has asked me, but a word of advice to the less-healthy banks…like any distressed business, when you find yourself invoking the “live to fight another day” strategy, you should be thinking really hard about your exit strategy.
SEE ALSO: Profits falling, banks confront a leaner future from Sunday's New York Times
MGLaw attorney Griffin Dunham says legislation to tighten bankruptcy filing venue rules — Memphis Congressman Steve Cohen is co-sponsoring the bill — should be well received. The proposal will require companies to file where they are based or do most of their business.
The bill is aimed at preventing debtors from using a friendly forum where they have no real presence to make creditors’ lives more difficult. This makes sense - the most affected districts should hear the case. This also seems fair to creditors because presumably it would cut down on the significant transaction costs that would be incurred to fight in $600/hour legal markets like Delaware and New York.