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It looks to me that David Daberko left one heck of a legacy.
The Washington Post reported yesterday: a Cleveland institution has fallen.
While it’s true that the weakened housing and credit markets made the most dramatic impact on National City in 2007, the crime for which it now faces the gallows was committed in 1999. That’s when former chief executive David Daberko changed the bank’s business mix by accumulating higher-yielding, but riskier, loans (most notably subprime mortgage loans).
As Bill Callahan has documented, commercial banks’ subprime strategies dismantled twenty years of development in Cleveland neighborhoods in a matter of months. From yesterday’s Washington Post:
Last year alone, 8,000 homes went into foreclosure in the city, whose population has shrunk below 450,000. With tax collections shriveling and a recession looming, the city is in its worst shape in years.
Misguided meddling in local and statewide politics gave us the Greater Cleveland Partnership’s laughably deceptive “Learn and Earn” casino proposal and pushed Tim McCormack, a persistent critic of the business leadership, out the door — as McCormack believed at the time — to prepare the way for a convention center. Read more.
(Looks like McCormack was pretty much right about that one.)
And Daberko walked away with a nice severance.
(Graphic from this story at the Dayton Daily News.)
Last 5 posts by Ed Morrison
- Signing off - February 3rd, 2012
- "The current global development model is unsustainable" - February 1st, 2012
- Market opportunities for developing Chicago's green economy - January 29th, 2012
- Plain Dealer flubs its explanation for firing Tony Grossi - January 27th, 2012
- Linking and leveraging university assets to strengthen regional economies - January 27th, 2012