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Posts tagged as “economic”

And still more troubled banks

We're not done with the troubled-bank story yet. A Seattle Times analysis today by Drew DeSilver says that "At least a dozen of the 52 Washington-based banks examined are carrying heavy loads of past-due loans, defaults and foreclosed properties relative to their financial resources. Many of these banks have set aside relatively little cash to cover problem loans, the analysis shows."

The banks cited include Anchor Mutual Savings Bank at Aberdeen, Horizon Bank at Bellingham, Evergreen Bank at Seattle, and Venture Bank at Lacey. But there are others too. (Interesting that the overlap with the list of federal stabilizing funds recipients doesn't seem to overlap much.)

There's also an interactive chart showing where the banks sit according to a number of measures of stability. With the caveat that no single set of numbers are solid indicators, the eye naturally goes nonetheless to the comprehensive risk ratio, which (roughly) indicates how bad assets stack up against good ones. You see there why some of the aforementioned banks get some of the attention they do. Westsound of Bremerton has the highest CRR at 282.5%; Venture at Lacey is at 172%; City Bank at Lynnwood at 171%; Frontier Bank at Everett at 126%; Shoreline Bank at Shoreline at 120%; Seattle Savings Bank at 117%; Horizon Bank at Bellingham at 110%; North County Bank at Arliington at 103%.

None of this is totally current; most of the information seems to be as-of the end of last year. But it gives you an idea of what headlines might be emerging in the months ahead.

Slice and cut

Butch Otter

C.L. "Butch" Otter

C.L. "Butch" Otter, Idaho's governor, has long been a cut-taxes-less-government kinda guy, but some of his recent statements suggested that he might try to find ways in the next year's state budget to avoid really massive, overwhelming cuts. And he may well have tried. But great big cuts are the hallmark of what he has proposed to the Idaho Legislature today.

Consider this slice from early in the speech:

The budget recommendation you received today includes a General Fund allocation for public schools that is about 5-and-one-third percent less than this year’s appropriation. However, the $1 billion, 425 million I’m proposing for K-through-12 education next year still represents almost half our total General Fund budget.

And the fact is that my proposed public schools budget is reduced FAR less than I’m recommending for other state agencies. For example, my General Fund budget proposal for Health and Welfare is down 71⁄2 percent. Higher education is down almost 10 percent; the departments of Correction and Water Resources each are down almost 12 percent. The Department of Agriculture recommendation is down more than 31 percent, Commerce more than 51 percent, and Parks and Recreation almost 56 percent.

He also declined to have any truck with the state's rainy day funds; there may be, he suggested, a lot of rainy days.

As conservative as the Idaho Legislature is, there may be some dispute about some of this.

From there, he spoke of Project 60, a broad-based effort to increase Idaho's economic output, "nurturing a new generation of entrepreneurial giants. We want to encourage and create a climate that enables visionaries like the Simplots, Albertsons and Morrisons of yesterday – and like the Parkinsons, Hagadones, Vandersloots and Sayers of our own generation – to create more jobs and brighter futures for Idaho families and communities." (more…)