What a week for Anchor Bancorp of Wisconsin. Its holding company declares bankruptcy, then the SEC comes out today with fraud charges against the CFO. (The case was settled.) A bad earnings report just added icing to the cake.
Anchor owed the Treasury $139 million in TARP debt. Like Anchor’s other creditors, Treasury settled for 3.3% of equity in the reorganized company. That equity is essentially worthless at this point. Not sure why the Federal Reserve and other regulators want to keep this bank alive. There’s also the question of the timing of these announcements. The company is saying they are coincidental. The SEC refused comment when I asked them. Waiting to hear from the Treasury Department, they’ll probably keep quiet too.
- Anchor BanCorp Announces Recapitalization (virtual-strategy.com)
- Anchor BanCorp: Associated Bank forced bankruptcy (nbc15.com)
- Anchor BanCorp Wisconsin Inc. Announces First Quarter Results (virtual-strategy.com)
- Anchor BanCorp defaults on U.S. Bank loan after Fed denies extension (bizjournals.com)