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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (25030)	10/16/2006 11:51:23 PM
From: E_K_S	Read Replies (1) \| Respond to of 78740

Kara Homes a home builder in NJ. declared bankruptcy on October 10, 2006. They are a small home builder 127th in the industry. Twelve small regional banks had exposure to Kara's bad loans. One key with these regional banks is to avoid the potential land mine due to a large bad loan during the last real estate cycle. Hopefully, these banks have minimized their portfolio exposure to any one builder's loss by selling some of their loans. Again, the management is key but hard to quantify. EKS Amboy Bank About to get Stiffed Again According to the Asbury Park Press, Amboy Bank is one of Kara's largest creditors. Amboy recently got stiffed by Solomon Dwek. (http://shorebubble.blogspot.com/2006/10/amboy-bank-about-to-get-stiffed-again.html) "Amboy National Bank has suffered its second blow this year after a home building company filed for bankruptcy Thursday. Amboy holds $58.2 million in loans with Kara Homes Inc., one of the largest home builders in Monmouth and Ocean counties. According to the bankruptcy filing, it is the largest creditor to Kara Homes. A bank analyst said the bankruptcy puts Amboy in a difficult financial position, and could be a harbinger of things to come for local and regional banks if the real estate market continues to decline." app.com Kara bankruptcy deals another blow to bank owed millions by Dwek From the article:"...Amboy was not the only bank included in the Kara bankruptcy filing. National City Bank of Philadelphia holds $48.2 million on loans to Kara. North Fork Bank of Edison holds $21.3 million; TD Bank North of Portland, Ore., holds $15.9 million; Yardville National Bank holds $7.8 million; Magyar Bank of North Brunswick holds $7.5 million; and Park Avenue Bank of New York holds $3 million in loans to Kara. Yardville, Magyar and Park Avenue are also owed money by Dwek. Claims from those three banks total $37.3 million...."