Benj. Franklin Savings and Loan and Arbroath Sporting Club: Difference between pages
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{{Football club infobox |
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| clubname = Arbroath Sporting Club |
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[[Image:Bfsl0.gif|thumb|right|300px|Approximation of Benj. Franklin Logo]] |
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| image = |
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| fullname = Arbroath Sporting Club |
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| nickname = |
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| founded = ''unknown'' |
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| ground = Seaton Park |
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| capacity = ''unknown'' |
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| chairman = |
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| manager = |
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| league = [[Scottish Junior Football East Region North Division|SJFA East Region North Division]] |
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| season = 2007–08 |
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| position = [[Scottish Junior Football East Region North Division|SJFA East Region North Division]], 9th |
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}} |
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'''Arbroath Sporting Club''' (commonly known as '''Arbroath SC''') are a [[Scotland|Scottish]] [[Scottish Junior Football Association|junior]] [[football (soccer)|football]] club based in [[Arbroath]]. Their home ground is Seaton Park. Arbroath SC played in the amateur and juvenile levels in the 1960s and early 70's, with home games at the Low Common. They turned junior in the late 1970s and moved to their new home of Seaton Park. Seaton Park is now wellknown for car boot sales every Sunday in the summer months. |
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Benj. Franklin Savings and Loan was a thrift based in Portland, Oregon, which was seized by the United States Government in 1990. In 1996 the United States Supreme Court found that this seizure and other similar seisures were based on an unconstitutional provision of a 1989 law known as [[FIRREA]]. Shareholders of the thrift sued the federal government for damages caused by the seizure. |
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Up until the end of the 2005/6 season, they played in the [[Scottish Junior Football Tayside Premier League|Tayside Premier League]] of the [[Scottish Junior Football Association]]'s [[Scottish Junior Football Association, Eastern Region|Eastern Region]]. |
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Residents of Oregon and Washington will remember TV commercials featuring Bob Hazen, President, a short fellow with a high voice, hawking toasters and other free gifts to woo new depositors, and pitching their other products and services. Hazen's father founded The Benj. Franklin in 1925. Although the name on signs and letterhead was "Benj." in promotions and discussions, the full word "Benjamin" was always used. |
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The SJFA restructured prior to the 2006/7 season, and SC found themselves in the twelve-team [[Scottish Junior Football Eastern Region North Division|East Region, North Division]]. They finished second in their first season in the division. |
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Between 1982 and 1989 the thrift made a profit in 16 consecutive calendar quarters and became the number one mortgage lender in the Portland metropolitan area. It had strong lending positions in other major areas of the Northwest. |
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SC's arch-rivals are [[Arbroath Victoria F.C.|Arbroath Vics]]. |
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== Headquarters == |
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{{fb start}} |
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Their named headquarters building was [[1 SW Columbia]], in Portland, Oregon. A 30-story 1980s brick-vernier office building, fronting on the Willamette River near the Hawthorne and Marquam Bridges, the building still stands. Today wears a different company's name. |
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{{SJFA East Regional Divisions}} |
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{{fb end}} |
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[[Category:Scottish football clubs]] |
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Hazen was a fan of [[Iron Front Buildings]] an architectural style popular in the 1800s to early 1900s. He had collected castings from a great many, as the old buildings were torn down over the years by developers. Several of these Iron Fronts were incorporated into the executive level and board room of the building. |
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{{Scotland-footyclub-stub}} |
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== Seeds Of The Seizure == |
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In 1982 the entire industry was on the verge of bankruptcy, as was the [[FDIC]] and [[FSLIC]], the government agencies that insured banks and thrifts to protect the depositors. Interest rates on savings deposits were over 15% at a time when the industry was invested in long-term mortgages charging about 8%. |
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The Government encourages healthy banks and thrifts to acquire failing banks and thrifts. There were various incentives, including an accounting strategy that valued the negative net worth of the failing thrift as a capital asset of "Goodwill." These were called [["Supervisory Goodwill Agreements"]]. The acquiring thrift was allowed to show this "Goodwill" as an asset for regulatory compliance purposes, depreciating (writing it down) over a long period of years. "Supervisory Goodwill" was also called "[[Blue Sky]]." |
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In 1982, Benj. Franklin was asked by the [[FSLIC]] to acquire a failing thrift, [[Equitable Savings and Loan]]. The agreement with the government included a 40-year amortization of over $340 million in "Supervisory Goodwill." Benj. Franklin and the government made a similar agreement in 1985 concerning the acquisition of [[Western Heritage Savings and Loan]]. These agreements had the full approval of the Federal Home Loan Bank Board. |
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== Ex Post Facto Laws == |
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Some thrifts, especially in the southwestern United States, defrauded investors and depositors. This was the time of the [[Keating Five]]. |
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Congress reacted to these frauds (perhaps further motivated by the internal embarrassments of the Keating Five) by passing a law in 1989 called FIRREA . Among it's provisions, FIRREA retroactively revoked agreements for the long-term amortization of goodwill. Section 9, Clause 3 of the US Constitution prohibits "Ex Post Facto" laws (making something illegal after it has happened). This clause was later decided to apply to FIRREA and thrifts by the US Supreme Court. |
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With $330 Million in "Supervisory Goodwill Agreement" removed from the balance sheets, the FSLIC notified Benj. Franklin that it was insolvent, and demanded that Benj. Franklin make up for the lost $330 Million in capital within an impossibly short time. |
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== The Seizure == |
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The board of Benj Franklin answered by pointing to the contract all had signed, taking the position that the requirement to raise additional capital was an attempt at unilateral change of contract terms to which they did not agree. It was also pointed out that this re-capitalization would not be needed had Benj. Franklin not done the government the very big favor of taking a failed thrift off it's hands. |
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The FSLIC declared Benj. Franklin insolvent and seized its assets on February 21, 1990. |
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== The Lawsuit == |
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4,000 shareholders sued the government for breach of contract. They won. |
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However suing the government is expensive and lengthy. |
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In 1995, it was ruled that these shareholders had the right to bring suit (“shareholder standing”). |
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In 1996, the U.S. Supreme Court ruled in a companion case that the government had breached its contract for long term amortization of goodwill. |
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In 1997, a judge decided that the government breached its contract with Benj. granting “summary judgment on liability.” No trial needed. |
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Trial on the issue of how much damages should be awarded started on January 11, 1999, and with frequent intervals, finished on September 17, 1999. |
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Experts testified that the value of Benj. at the time of trial if it had not been seized would have been $944,000,000. |
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Government experts testified that the damages to Benj. due to the seizure was zero! |
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== Aftermath == |
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Benj Franklin was a healthy S & L until federal regulators violated the terms of an agreement under which Benj Franklin accepted the assets of other S&Ls. The assets of Benj Franklin were seized and sold at fire sale prices to what is now Bank of America. |
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The shareholders of Benj. Franklin sued the government and won. Unfortunately Bob Hazen and most members of the board were by then dead. |
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== External Links == |
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* [http://www.benfranklinoregon.org/ Shareholders Litigation Fund Website] |
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* [http://www.fdic.gov/bank/individual/failed/franklin.html FDIC Page on Benj. Franklin S & L] |
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* [http://www.bizjournals.com/portland/stories/2004/10/04/story7.html Portland Business Journal, October 1, 2004] |
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* [http://seattlepi.nwsource.com/archives/1988/8801170308.asp Seattle PI article on 430,000 share purchase (5.6% of stock) on June 17, 1998 ] |
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* [http://wweek.com/html/25-what.html Wilamette Week "where are they now?'] |
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Revision as of 01:14, 13 October 2008
| Full name | Arbroath Sporting Club |
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| Founded | unknown |
| Ground | Seaton Park |
| Capacity | unknown |
| League | SJFA East Region North Division |
| 2007–08 | SJFA East Region North Division, 9th |
Arbroath Sporting Club (commonly known as Arbroath SC) are a Scottish junior football club based in Arbroath. Their home ground is Seaton Park. Arbroath SC played in the amateur and juvenile levels in the 1960s and early 70's, with home games at the Low Common. They turned junior in the late 1970s and moved to their new home of Seaton Park. Seaton Park is now wellknown for car boot sales every Sunday in the summer months.
Up until the end of the 2005/6 season, they played in the Tayside Premier League of the Scottish Junior Football Association's Eastern Region.
The SJFA restructured prior to the 2006/7 season, and SC found themselves in the twelve-team East Region, North Division. They finished second in their first season in the division.
SC's arch-rivals are Arbroath Vics.
Template:Fb start Template:SJFA East Regional Divisions Template:Fb end
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