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Cascade Bancorp gave shareholders a rather unsurprising Christmas present last week by notifying them of two discouraging developments. First, the company has given up on trying to raise capital. How this affects the January 27th deadline to do so imposed by an FDIC cease and desist order is not yet clear.

Secondly, the company said that the Nasdaq has officially given notice to the company that they are in danger of losing their listing on the exchange. The company could perform a reverse split to bring the price back above the minimum one dollar bid but this tactic, typically employed by similarly embroiled companies, usually fails.

All in all, things aren’t looking up for the company. One reason investors might be staying away it that the company’s commercial real estate portfolio looks like its following residential real estate into the mean reverting abyss, a fact I wrote about back in October. Either that or investors have simply lost faith in a management team that jumped headfirst into the biggest financial bubble in history.

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