- Connect
- Login
- Print Subscription
|
Welcome,
| |
| |
- Most Commented
- Most Commented
- Most Emailed
- Most Emailed
- Popular
- Popular
« News Home
Regulators order changes at Home Savings and Loan
YOUNGSTOWN — Federal and state regulators have ordered Home Savings and Loan and its holding company, United Community Financial Corp., to make changes to certain business practices.
Areas the organizations had to change as a result of a routine audit from January included debt reduction, the payment of dividends and overall risk management.
Doug McKay, UCFC chairman and chief executive, said that Home Savings customers can remain assured that their deposits are safe.
“We’re going to comply with this order, and this [issue] will eventually go away,” McKay said. “There is no other story behind this that will be reported next week; this is the full story.”
McKay declined to comment on the bank’s specific plans to comply with the order.
For more on this story information, see Thursday’s Vindicator or www.vindy.com.
- Requires free registration.
Comments
The problem with companies that were formerly private and then went public is that the executives think they can still run it like it was private. The McKays still run it like a personal piggy bank. Giving out bonuses when they were handing out bad real estate loans and now are paying the price for those bad loans. What a poorly run bank.
McKay should resign along with the rest of the Board. This is totally unacceptable. Big salaries and bonuses to his cronnies. I am going to pull my accounts to show my displeasure and move them to Farmers National Bank, wish I could sell my stock in this Corporation.
Your money is safe. the ausit addresses commercial loans, and Home Savings has improved and tightened their underwriting guidelines.
The dividend issue is talking about saving more of earnings and paying a smaller dividend based on those earnings. Home Savings had a few quarters where earnings were low and dividends stayed high. That is all.
If you yank your money based on this, you are a poor investor. Home Savings is,has been and will continue to be the best run financial Institution in greater Youngstown.
It's comical that state and federal regulators are mandating changes when you consider the national debt and what the State of Ohio legislature has done with state turnback formulas(sharing state taxes) originally designed to help local government. They continually tweaked distribution formulas, chipping away at the turnbacks to solve state funding problems and creating shortfalls in local government. The tweaks have been called outright raids by the experts.
I'll leave my money in Home Savings. Next week the media will be titillating us with bad news about Farmers.
So what's gonna happen with the money invested in the United Community Financial Corp? Thought we were helping Home Savings become even more stable by investing there. It was a good thing for a while.