Columbus Day Open Thread

http://walshal.wordpress.com/2009/09/16/good-billions-after-bad-where-did-the-tarp-money-go/

Gouging Needy Students
KeyBank of Cleveland is another institution that was given the nod by Treasury officials—and another bank whose lending practices prompt the question: What were they thinking?
Last fall KeyBank received $2.5 billion in tarp money. Its parent company is KeyCorp, a major bank holding company headquartered in Cleveland. With 989 full-service branches spread across 14 states, KeyCorp describes itself as “one of the nation’s largest bank-based financial services companies,” with assets of $98 billion. It also ranks as the nation’s seventh-largest education lender. In the summer of 2008, as banks and Wall Street firms were unraveling faster than they could count up their losses, KeyCorp delivered a decidedly upbeat report on its condition to investors. “Our costs are well controlled,” the company stated. “Our fee revenue is strong.…Our reserves are strong.…We remain well capitalized.”
What the report did not mention was a host of other problems. KeyCorp was in the midst of negotiations with the I.R.S. over questionable tax-leasing deals, and had had to deposit $2 billion in escrow with the government—forcing it to raise emergency capital and slash dividends after 43 consecutive years of annual growth. Meanwhile, consumer advocates had KeyBank in their sights because of the way it conducted its student-loan business, which they described as nakedly predatory. The Salt Lake Tribunereported that “KeyBank not only funds unscrupulous schools, it seeks them out, strikes up lucrative partnerships, and, in the process, suckers students into thinking the schools are legitimate.”
Over the years, thousands of students have secured education loans from KeyBank to attend a broad range of career-training schools—schools offering instruction in how to use or repair computers, how to become an electronics technician or even a nurse. One of the schools was Silver State Helicopters, which was based in Las Vegas and operated flight schools in a half-dozen states. During high-pressure sales pitches, people looking to change careers were encouraged to simultaneously sign up for flight school and complete a loan application that would be forwarded to KeyBank. Once approved, KeyBank, in keeping with long-standing practice, would give all the tuition money up front directly to Silver State. If a student dropped out, Silver State kept the tuition and the student remained on the hook for the full amount of the loan, at a hefty interest rate.

Rob, there’s a doctor’s office on Flatbush at Plaza St. on the Prospect Heights side of Flatbush. It used to be Dr. Kurz’ office, but he retired. (The address is on Plaza St. but the door is on Flatbush.) There are 2 docs who are good for regular stuff and they are cheap. I think an office visit is $60 and they will write prescriptions, take health insurance, etc.

Here’s the phone number:
718-638-2551

Ditto, you coming out on Thursday or still keeping anonymity?

HOBOKEN, care to share details? I liked Jersey City Heights section but when I looked, none make financial sense for me to buy as an investment. This was over 2 years ago though.

My friend still swears by opportunities of buying a commercial property in Jersey City (a warehouse of some sort). Those will fair out well in the future given the proximity to Manhattan and warehousing moving to either Bronx or Jersey.