Tuesday, August 12, 2008
Vineyard and Downey stocks take a tumble and management announces that customer withdrawals are sinking the ship. Looks like customers are finding out the truth even without much assistance from the media.
Vineyard Bancorp falls, cautions it may not survive (August 12 – MarketWatch)
Shares of two California-based savings and loans saw their shares fall sharply Tuesday amid tighter regulatory oversight and fewer funding options. Shares of Los Angeles-based Vineyard Bancshares fell 45% Tuesday after the company warned it may not be able to stay in business.
It said in a regulatory filing that customers have recently withdrawn “significant” deposits and that, “conditions and events cast significant doubt on our ability to continue as a going concern.”
Looks like depositors all over the country are getting a clue. While imminent bank problems have been seriously underreported by the media (who don’t want to be seen as adding fuel to the fire), bank customers and investors are getting wind of problems just fine all on their own.
Check out the stock action of Vineyard Bancorp over the past few weeks. Ouch. But then check out todays action. OUCH! This says major trouble is afoot at VNBC.
And there’s another bank that’s in trouble out there in CA: Downey Financial Corp.
I know that little red dropping bar there doesn’t look all that significant in the face of the declines over the past months, but it is a serious -25% decline (on large volume).
