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Cathay Capital Raising Highlights Transformation

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Talk about a strange brew. Cathay General in Los Angeles was hit by an enforcement action in December, tapped the equity markets this week and is now contemplating expansion.

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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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