A bad day for Auburn’s Bobby Lowder

Did Colonial violate SEC rules?
Bobby Lowder’s Colonial Bancgroup (CNB) may have violated securities rules when it filed its December 2 statements a financial website reported. According to TheStreet.com, “And while the company’s failure to disclose that the TARP approval was contingent on the private capital-raising in the Dec. 2 filing might have been an oversight, some lawyers believe Colonial could be a violation of an SEC rule that bars companies from making untrue statements or omitting material facts that would keep financial statements from being misleading.”

Where is that Auburn Creed when you need it?

The bank could face severe capital issues too. From TheStreet.com, “Even though the company emphasized it had increased reserves and was well capitalized with leverage and risk-based capital ratios of 6.13% and 13.16%, the ratio of nonperforming assets to total assets was rising to 4.83% as of Dec. 31, up from 4.43% in September. Meanwhile, net loan charge-offs for the fourth quarter were $415 million. The annualized pace of net charge-offs to average loans was 11.15%. Colonial’s ratio of loan loss reserves to total loans was 2.24% as of Dec. 31.

If this level of loan losses continues over the next few quarters, Colonial will easily blow through its capital, even including the $853 million it expects to raise.”

What does this mean for Auburn and its board of trustees? Paul Davis is urging Lowder to “take his money and go home.” Davis wrote in his column, “The same week that the Montgomery banker was announced as one of Alabama’s most influential men, the federal government and Colonial Bank shareholders have selected him as one the nation’s worst bankers…I don’t know if Colonial Bank is going away. But I surely do hope that Lowder does.”

21 Comments

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  1. 4
    Bama Fan in NYC

    ^Notice how the Alabama PolyTECHnic Institute topics didn’t get flowing until you guys showed up during the last offseason.

    You reap what you sew!

  2. 8
    SportsInsiderguy.com

    I called Bobby Lowder for an interview over the phone and I got his secretary…She said:
    “Mr. Lowder is currently busy in an important meeting….”
    Meanwhile in the background I heard some raving lunatic screaming: “What do you mean I’m BROKE AS FUCK!?!

  3. 9
    Auburn Man

    This whole article is a vast right-wing conspiracy to undermine great men like Bob Lowder and myself.
    There is no one in the world I would trust more with my money that Bobby Euripides Lowder. No one.
    I am seriously considering taking my money out Wachovia as a show of good faith for the financial genius of Bobby Lowder.
    Wait a second…. He lost $193.5 million of his own money in one day…?

    Nevermind.

  4. 10
    Phillip Marshall

    Bobby is broke?
    But he still owes me for all the fluff pieces I did for Auburn in January!
    Lowder…. Pay up or I will kick your sorry wine swilling ass! I mean it.
    I have been kissing sorry asses around Auburn for years because of you. Pay up or I will post the pictures of you wearing the red see-through nightie and pumps I took during the New Year’s Eve party!

  5. 18
    Pat Dye

    Auburn Family….This morning I woke up with Auburn on my mind, Becasue last night I went to bed with…. you guessed it …..Auburn on my mind…We should stick together during these tough times and fight our real enemy Nick Saban.

  6. 21
    Saul Bryant

    Auburn’s Bobby Lowder?

    You’re projecting. Twisting. Spinning.

    No one at Auburn wants him. Blame Alabama politics (you know, The Machine kind) for infecting the state’s best university with him.

    Reading this sad little blog and the lovely Bammer comments below, it’s clear Auburn has nothing to worry about. Other than continued association with such a backwards and angry bunch of single-minded goobers.

    If this is indicative of Alabama, it’s a great thing indeed if most of the nation thinks Auburn is in Georgia!

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