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March 14, 2010

Chabad Hasid's Bank First To Fail In NYC In 11 Years

Boymelgreen Real estate developer Shaya Boymelgreen's Web site proclaims his finance business is “built on a solid foundation.” He might wish to revisit that statement after federal regulators seized LibertyPointe Bank.

Boymelgreen bank first to fail in NYC in 11 years
Real estate developer's many woes are topped off by federal regulators seizing his LibertyPointe Bank and selling it at steep discount to Valley National Bank.

By Aaron Elstein • Crain's

Boymelgreen Real estate developer Shaya Boymelgreen's Web site proclaims his finance business is “built on a solid foundation.” He might wish to revisit that statement after federal regulators seized LibertyPointe Bank, an institution that he helped start and served as chairman. 

LibertyPointe late Thursday became the first New York City bank to fail in 11 years. For Mr. Boymelgreen, it was just the latest turn of the screw.

In January, he was evicted from his corporate headquarters in Brooklyn after the landlord said Mr. Boymelgreen stopped paying rent. Several of his real estate projects are stalled, and he faces a flood of lawsuits alleging everything from failure to repay loans to fraud and negligence, as well as breach of contract related to the construction and sale of two condominium projects.

It's a painful turn in fortune for the Israeli immigrant who made a big splash during the housing mania by converting lower Manhattan office towers into condominiums. His conversions include 20 Pine St., 23 Wall St. and 15 Broad St. He and a partner also bought properties in Miami and Las Vegas.

Mr. Boymelgreen branched into banking in 2005, starting LibertyPointe with a partner named Meyer Eichler, the founder a Coney Island Avenue bookstore that bills itself as the world's largest Judaica store. The idea was the bank would serve Brooklyn's Orthodox Jewish population.

“Money is begging us to come out,” Mr. Eichler told The Brooklyn Paper at the time. A person who answered the phone at his bookstore Friday said Mr. Eichler wasn't available to comment. Mr. Boymelgreen didn't return a call seeking comment.

LibertyPointe grew to two branches in Brooklyn and one in lower Manhattan and had $210 million in assets and a like amount of deposits. While Mr. Boyelgreen attended board meetings, he wasn't involved in its day-to-day operations and former management said the bank's funds weren't used to fund his real estate projects.

The unprofitable bank was a dismal lender. Fully 22% of its loan portfolio wasn't collecting interest at the end of last year, according to federal regulatory data. Last July, regulators issued a cease-and-desist order, saying the bank had excessive levels of delinquent loans, too much exposure to commercial real estate and inadequate loan-loss reserves. Regulators ordered the bank to raise additional capital last October, but management was unable to do so and on Thursday evening the clock ran out. 

LibertyPointe's accounts were transferred to New Jersey-based Valley National Bank, which agreed to take only about $20 million of the failed institution's loans. The Federal Deposit Insurance Corp. will share losses with Valley on the rest. The FDIC estimated that LibertyPoint's failure would cost its deposit insurance fund $24.8 million.

A call to LibertyPointe's chief executive, Merton Corn, wasn't immediately returned.

[Hat Tip: Nachos.]

Comments

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Didn't Bear Stearns and Lehman Brothers also fail...in NYC...within the past couple of years?

By pure coincidence, Park Avenue Bank, another Hareidi-owned bank failed and was seized by regulators on Friday.

http://abcnews.go.com/m/screen?id=10089516

LSK,

Lehman Brothers LLC failed. It's subsidiary Lehman Brothers Bank did not.

As usual there is this compelling need to specify that he was Chabad. The subliminal message that Chabd = Bad - Sigh!

The Rabbinical Center of Europe categorically denies that they are opening a Beth Din for conversions in Budapest as previously reported by this site. They deny that they preform any conversions!

http://chabad.info/index.php?url=article_he&id=53616

Where is the Obama bail out or did Obama the Jew hater run out of cash.

I bank with a small bank, not a small Jewish one.

ZM, thanks for the site. It looks like that RCE is worse Tropper's EJF. They don't do conversions themselves, they don't plan to do any conversions in the future, but they advocate for strict approach to conversions and invalidation of "non-strict" ones. These Tanya inspired racists should be exposed for what they are.

Re: Chabad above

Can someone tell me what the difference is between chabad.info and chabad.org? Obviously .info is adamantly MMS = moshiach, but who are they run by?

Chayim:
You are just pissed that a black man could be elected president before one of your black-hatted bumpkins.

CHAREIDI POWER NEVER! BE ONE AND BE A CULT VICTIM!

This is more schadenfreude than "expose". If this site is going to be rejoicing every time someone Jewish goes broke, in this economy there will be much to gloat about.

I don't see where this individual committed any crimes (other than the crime of being Jewish/Chabad), and it appears, if anything, they were too lenient on loans.

who knows:
The RCF did conduct circumcisions - if one considers the loss of a hand or the tip of a finger a type of circumcision.

I don't see where this individual committed any crimes (other than the crime of being Jewish/Chabad),

According to this site just being frum is a crime, that is why this site is so distasteful

Yet you comment on just about EVERY single article, Harold.

You must LOVE distasteful.

You must LOVE distasteful

I am a glutton for punishment, what can I say.

But harold has a point here. Why is this story up on this site?

To Alter knocker
There are Chareidi blacks with black hats as well. I met the famous son of the king of swasiland when he wasw here in Brooklyn. His father is a real king and he left it all to become a Chareidi Jew. He speaks 12 languages and even has smicha. I hate liberals be they black,white or purple because of their anti religious destructive behavior. These destroyers are bringing down America through gay rights,abortions on demand,feminism,teaching of evolution in schools and the entire drug culture fiasco.
CHAREIDI POWER IS THE ANSWER.
8 more years and life will be wonderful in Israel as it will be SECULAR FREE.

Over 100 banks were closed by FDIC in the US over the last two years, why is this news?

Over 100 banks were closed by FDIC in the US over the last two years, why is this news?

One word

CHABAD


Chayim:
Have you ever heard the word laissez-faire. It means that you should leave it alone. Here in North America we liberals as you call it have brought about some things that you may have had difficulty living without. Your fascist remarks only lead me to believe that an Israel in Chareidi hands will die almost immediately.

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