They just bought First National Bank of Arizona after the FDIC took it over on Friday.
It’s hard for me to see how the banks who are losing tens of thousands of dollars on every foreclosed home can make it up on free checking accounts.
The bank, founded last year, is too new to have much exposure to the subprime-mortgage debacle and resulting fallout.
The mortgage banking industry could look very different in a few years as new players who are not tied to boat anchor mortgages out-compete the too-clever-by-half former market leaders.