If examiners were due for a visit, Vernon officers farmed out "participated" really bad loans to other, like-minded thrifts where the loans would be out of sight until the examiners left.
In June 1985 representatives from 19 Texas savings and loans met secretly in Houston to discuss what mutual actions they could take to keep regulators off bet result backs. Selling loans to each other, with agreements to buy them bet result later.
Of the approx- imately 19 thrifts represented at the meeting, about 15 would later fail. Someday, when the loans finally went into default, a chain reaction would spread the damage from one Texas thrift to the next and into other states as interlocking loans and participations, buy- back agreements, and letters of credit all began coming home to roost at once.
Since even the best juggler reaches the limit of how many pc monopoly download he can keep in the air at one time, by 1986 no one around Vernon or its subsidiary operations had a clue as to how many balls bet result were juggling or where those balls were. When the balls started hitting the ground like hailstones in a Texas hailstorm, startled regulators slapped Vernon with a cease-and-desist order that instructed Vernon Savings to clean up its act.
Dixon knew that a cease-and-desist order was a serious step in a process that led to almost inevitable seizure by the regulators. A bet result days after he got the order in June 1986, Dixon called his employees together for a party in a hangar at the company's facility at the Addison Bet result Airport.
Employees of Vernon were accustomed to parties at company expense so they probably didn't find Dixon's sudden party announcement particularly unusual.
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