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MAY 7, 2009 1:00am ET

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Loss Means Branch Sale Won't Lift Capital After All

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First State Bancorp. in Albuquerque was well on its way to satisfying regulators' capital requirements when it ran into another setback.

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The $25 billion mortgage robo-signing settlement is:
Political extortion from the banks in an election year
A slap on the wrist — the banks put reserves away for this long ago, they won't even feel it
A source of relief for both banks and homeowners that could help the housing market and economy recover
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