So That’s What Andy Beal’s Been Up To…

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Jessica Biel (above from 2007 GQ spread) is of absolutely no relation to billionaire banker/poker player Andy Beal.

Haven’t heard much lately from Andy Beal, the billionaire book subject (The Professor, The Banker, and The Suicide King) who took on The Corporation (Doyle Brunson, Todd Brunson, Ted Forrest, Jennifer Harman, Howard Lederer, Phil Ivey, Barry Greenstein, etc.). This is likely because: a) he was just part of that whole "Moneymaker Effect," a hot-shot Internet donk who got lucky and faded fast, or b) he’s been duking it out with the fed.

It’s b, btw.

According to the Wall Street Journal:

Federal officials heap much of the blame for the subprime mortgage mess on lenders, claiming they recklessly made too many high-cost home loans to borrowers who couldn’t afford them…

The unusual situation, which is still bedeviling bank regulators, stems from the 2001 seizure by federal officials of Superior Bank FSB, then a national subprime lender based in Hinsdale, Ill. Rather than immediately shuttering or selling Superior, as it normally does with failed banks, the Federal Deposit Insurance Corp. continued to run the bank’s subprime-mortgage business for months as it looked for a buyer. With FDIC people supervising day-to-day operations, Superior funded more than 6,700 new subprime loans worth more than $550 million, according to federal mortgage data.

The FDIC then sold a big chunk of the loans to another bank. The Superior situation could be costly for the FDIC. Texas-based Beal Bank SSB, which bought a portfolio of Superior loans, about half of them originated under the FDIC, is suing the agency in U.S. District Court in Washington. The suit claims many of the loans were made improperly and are plagued with problems.

In a recent court filing, the FDIC estimated that about 1,500 of the 5,315 loans it sold to Beal either have defaulted or are nonperforming.

Read the full article here or here.

* Thanks to reader Koji for the link.

 

2 Responses

  1. Kottan

    July 28, 2008 12:17 pm, Reply

    What a great side. 100000 Blogs and everywhere the same information. I think i will be become a daily visitor here. Go on and ty for this great blog.
    Regards Kottan

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