The Daily Bulletin had a letter from a long-time PFF Bank & Trust employee who said she knew where to place the blame for what she called the bank's "rapid descent into obvious bankruptcy."
The bank, whose parent company, Rancho Cucamonga-based PFF Bancorp, Inc. (PFB: NYSE), has lost more than 95-percent of it stock's value from its all-time high in August, 2006, has been in the news several times the past few months as it had to sell off what had originally been $100 million worth of bad loans to developers and home builders, then had to announce a loss of $159 million in the first quarter of 2008.
The Bulletin's letter writer, Virginia Soper, lays the blame squarely on the bank's CEO and on the current board of directors:
I can't help but recall some of our former directors and CEOs - founder Carl Lorbeer, Fred Palmer, Paul Walker, William Montgomery, Fred Mack, Bob Nichols, Don Des Combs and many others who would not have allowed this financial nightmare.
This reminds me of a book I read about the collapse of Enron. It was not a financial institution, but the basics are the same. It is called "The Smartest Guys in the Room." I suggest the officers and directors take the time to read it.
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