[Vision2020] Credit Suisse in court to defend loans to resort

[Art Deco]

Making a legitimate business loan is not a simple process.  Documents
including projected sales, costs, cah flow, etc are generally required.

Many projections are so-called educated guesses.  Both the loaner and the
loan recipient have a fiduciary responsibilities.  The latter to be as
accurate as possible in their projections; the former to examine those
projections carefully and independently test their probability.

For honest folks, that generally happens, although since knowledge of the
future is far from certain, some loans, careful and prudently made,
sometimes go bad.

Criminal and tort law becomes an issue when one or the other of the parties
are less than honest, accurate, or intentionally unrealistic about the
projections on the loan application.

Thus there are predatory lenders and predatory loan recipients.  Some loan
recipients never intend to repay fully, but to bargain down the amount
owed, for example.

I agree wit Kit about Blixeth, who is the driving force behind the proposed
Lochsa Land exchange.

w.



On Thu, Jan 12, 2012 at 3:04 PM, Donovan Arnold <
donovanjarnold2005 at yahoo.com> wrote:

> Paul,
>
> I think you lack imagination if cannot see how crafty lawyers and bankers
> lacking morals can devise ways to manipulate the economically desperate out
> of their assets.
>
> It is possible to write a legal contract in such a manner that is
> confusing, intentionally misleading, and hard to understand for someone
> that is not very educated and experienced in matters of law and financing.
> These are not loans you and I get. They are presented only to particular
> people in desperate financial situations who are not in any real position
> to say no and have little chance of meeting the obligations of the
> contract. They are contracts most people would consider highly unethical
> and exploiting vulnerable people.
>
> Donovan Arnold
>
>
>
>    *From:* Paul Rumelhart <godshatter at yahoo.com>
> *To:* Tom Hansen <thansen at moscow.com>
> *Cc:* Moscow Vision 2020 <vision2020 at moscow.com>
> *Sent:* Wednesday, January 11, 2012 8:02 PM
> *Subject:* Re: [Vision2020] Credit Suisse in court to defend loans to
> resort
>
>
> Did Credit Suisse hold a gun to their heads or something?
>
> If a loan is more than you can repay, don't take out the loan.  If you do
> take out the loan and you can't repay it, then you can't exactly blame the
> bank.  Business owners should be doing due diligence on these loans.  If
> they were somehow sweet-talked into raising the amount past what they could
> expect to repay, then they should take full responsibility for the effects
> of defaulting on the loans.
>
> Imagine what would happen if every business that took out a loan from the
> bank could sue the bank in court (with some expectation of winning the
> suit) if they couldn't make their payments.
>
> Paul
>
> P.S.  Removed the long list of CCs on your email.  They can subscribe to
> the list if they are interested in responses, don't you think?
>
>
> On 01/11/2012 04:38 PM, Tom Hansen wrote:
>
> Why doesn't Tim Blixseth simply knock on Butch Otter's door?  I'm sure
> the Guv would be more than happy to oblige him.
>
>  Courtesy of KHQ at:
>
>
> http://www.khq.com/story/16499438/credit-suisse-in-court-to-defend-loans-to-resorts
>
> ------------------------------
>
>   Credit Suisse in court to defend loans to resort *By MATTHEW BROWN*
>   Associated Press
> BILLINGS, Montana (AP) - Attorneys for Credit Suisse are due in court
> Thursday to defend accusations that the banking giant arranged hundreds of
> millions of dollars in predatory loans with the goal of taking over luxury
> resorts in Montana, Idaho, Nevada and the Bahamas.
> Plaintiffs backed by Yellowstone Club founder Tim Blixseth want $8
> billion in damages. They claim Credit Suisse conspired to loan the
> resorts more than they could repay and then foreclose on them.
> The other properties were Idaho's Tamarack Resort, Nevada's Lake LasVegas and
> Ginn Sur Mer in the Bahamas.
> Credit Suisse says the lawsuit is without merit and motivated by
> Blixseth's desire to divert attention from the Yellowstone Club's
> problems. Thursday's hearing is in U.S. District Court in Boise, Idaho.
> Real estate firm Cushman & Wakefield also is a defendant.
>  ------------------------------
>
>  Seeya later, Moscow.
>
>  Tom Hansen
> Spokane, Washington
>
>  "If not us, who?
> If not now, when?"
>
>  - Unknown
>
>
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> List services made available by First Step Internet,
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>               http://www.fsr.net
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>
>
> =======================================================
>  List services made available by First Step Internet,
>  serving the communities of the Palouse since 1994.
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-- 
Art Deco (Wayne A. Fox)
art.deco.studios at gmail.com
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