BOK Takes the Bullet

[FOTD]

And still on sturdy ground. Our fortune in this community remains. It's more important than ever to stand behind our great local institutions and business people. Nobody should defend actions that would hurt them. They drive all the good things going on around Tee Town.

Again, the devil wants to know the adverse ripple effect to this community after Tee Kay (rhymes with Ken Lay) bet his dynasty away.

So, if you got stories. Let's share.

This situation is not good. It could be worse. This ain't Detroit. Lucky we are that some who love this city still do what is best for us through their generosity and sacrafice.

And it ain't ova until the lady sez DNova.

[sgrizzle]

BOK issuing a new line of credit is a huge +++

Semgroup can sojourn on ignoring the panic button crowd.

[cannon_fodder]

Wow.  That was one of the most incoherent things I've ever read on this forum.  

I assume you are talking about the $70mil loss BOk filed today?
http://www.tulsaworld.com/news/article.aspx?articleID=20080725_49_A1_hr704103

You are just so excicted to hear bad news about Tulsa businesses that your post made next to no sense.  BOk Area?  or BOkF?  At first I thought someone shot the arena, or there was news on funding pulling out.  Or... I had to go to the Tulsa World and try to figure out what the hell you were talking about.

Please, put forth a little effort.  Incoherent ramblings and a desire to see Tulsa fail just aren't helpful at all.

On the greater scale, a $70mil loss for BOk is about 1 month of income.  Not exactly a death blow.  Some heads will probably roll if the situation was not monitored enough - but on a business level it destroys nothing. They are off 3% on the news.

[cannon_fodder]

If anyone is interested in the actual filing here is the BOKF SEC K-8 filing today:
http://google.brand.edgar-online.com/DisplayFiling.aspx?TabIndex=2&FilingID=6058817&companyid=304&ppu=%252fdefault.aspx%253fsym%253dBOKF

quote:The range considers both the value of SemGroup as a going concern and its liquidation value. Our current estimate is based on the lower end of the range of values. BOK Financial's strong capital position will enable the company to absorb these pre-tax charges without impeding our operations and growth.

They are reporting the worst case scenario and still foresee no problems.  No additional capital financing has to be raised to maintain FDIC standards.

[Friendly Bear]

quote:Originally posted by cannon_fodder

If anyone is interested in the actual filing here is the BOKF SEC K-8 filing today:
http://google.brand.edgar-online.com/DisplayFiling.aspx?TabIndex=2&FilingID=6058817&companyid=304&ppu=%252fdefault.aspx%253fsym%253dBOKF

quote:The range considers both the value of SemGroup as a going concern and its liquidation value. Our current estimate is based on the lower end of the range of values. BOK Financial's strong capital position will enable the company to absorb these pre-tax charges without impeding our operations and growth.

They are reporting the worst case scenario and still foresee no problems.  No additional capital financing has to be raised to maintain FDIC standards.

Maybe if CEO Lieburger and his minions had spent less time in trying to bum-rush the city council on Driller Stadium, and MORE TIME reviewing the Sem Group hedge position and their collateral margin, maybe they wouldn't have taken a $87 million write down this week.($71 million this week + another $16 million previously taken on their June 30 SEC filing).

Makes the $7.1 million Mayor Kathy Taylor "settlement" on Great Plains Airlines with BOK seem like a mere drop in the proverbial bucket, by comparison.

Wonder if they were somehow related?

Nah.

Sharing the Pain?

[]

[MDepr2007]

Good thing there are enough around here that believe these tru****l people know whats best for Tulsa also.

[Conan71]

quote:Originally posted by cannon_fodder

If anyone is interested in the actual filing here is the BOKF SEC K-8 filing today:
http://google.brand.edgar-online.com/DisplayFiling.aspx?TabIndex=2&FilingID=6058817&companyid=304&ppu=%252fdefault.aspx%253fsym%253dBOKF

quote:The range considers both the value of SemGroup as a going concern and its liquidation value. Our current estimate is based on the lower end of the range of values. BOK Financial's strong capital position will enable the company to absorb these pre-tax charges without impeding our operations and growth.

They are reporting the worst case scenario and still foresee no problems.  No additional capital financing has to be raised to maintain FDIC standards.

Did you read about the $188mm unsecured line of credit Geo. Kaiser extended to BOK this week?  Curious what all that is about, unless he's trying to ward off any liquidity issues related to losses from SEM.  (front page of Tulsa World this morning).

What's your take on it, Cannon?

[cannon_fodder]

The article continues:

quote:It just gives us more flexibility in funding BOK’s needs or any of its subsidiary bank needs,” Nell said.

“It doesn’t do anything different. It just means we don’t have to deal with other banks.

Now we just deal with Mr. Kaiser,” Nell said.

When asked whether the bank had to borrow money from Kaiser to be well-capitalized, Nell said: “I want to dispel any rumor that Mr Kaiser had to loan the money to support our capital. That is not the case.

“The bank maintains a strong capital position and is able to cover this loss without impacting our operations and our growth progress.”

I'm willing to bet it is not to shore up a position for FDIC or collapse mode, but to reassure investors.  With that line BOk can jump on any new opportunities it sees and streamline the process.  BOK doing well is worth way more to Kaiser than $180mil in the bank - PLUS, I don't know the terms of the loan.  

Knowing the financial status of BOK he could be assuring himself an above FDIC return with confidence in the institution.  I don't know, just guessing.  But I have no reason to doubt the above statements.

[FOTD]

This ripple is going to turn into a crater. A big crater....

Tulsa World "News - Breaking News" stories from Friday, July 25, 2008
Bank of America sues Tom Kivisto for $12.8 million[)]
By ROD WALTON World Staff Writer
Kivisto guaranteed the $15 million loan himself and through the Thomas L. Kivisto Trust's limited partnership interest in SemGroup, the complaint reads.
http://www.tulsaworld.com/news/article.aspx?subjectid=297&articleid=20080725_351_hr704103

The non profits will be hurt the most. Hence, the entire community suffers.[!]

 Too bad for the banks who provided the rope.[V]

Whole Lotta Hurt Coming?

It ain't ova til the lady sez DNova