honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Friday, September 18, 2009

Michigan AD says he didn't know how much his bank gave coaches


Associated Press

ANN ARBOR, Mich. — University of Michigan athletic director Bill Martin says he was unaware of the full extent of lending from the bank he founded and chairs to nearly a dozen Wolverines coaches.

The Detroit News reported Friday that 11 Michigan coaches have received $4 million in loans from Bank of Ann Arbor. That includes $2.8 million in mortgages and $1.2 million in credit lines. Martin said he didn't encourage the coaches to use Bank of Ann Arbor.

"I don't suggest banks to any coach," he told the newspaper. "I don't ever get involved in their financial affairs in any way, shape or form. I believe it would be a conflict of interest."

Martin said he did know that football coach Rich Rodriguez was a customer in January 2008, when Rodriguez received a $1.5 million line of credit.

Men's basketball coach John Beilein has a $417,000 mortgage at the bank. It also gave Rodriguez a $417,000 mortgage but sold the debt. Beilein's is the only coach's mortgage the bank retains.

Martin said the coaches' ties to Bank of Ann Arbor would not affect his treatment of them.

"My obligation is to protect the university first and foremost," the athletic director said. "I think this is a very important issue to clarify."

Martin said he would ask the bank to sell any loans to Michigan coaches it still holds.

"Now that I know, I don't like it necessarily," he said. "When you don't know, you don't have a conflict."

Tim Marshall, Bank of Ann Arbor's president and chief executive, said the bank probably would keep the lines of credit.

Earlier this summer, Rodriguez was sued in federal court by a South Carolina bank claiming he failed to pay back millions on a loan for a struggling Virginia condominium project. The suit says the coach owes a bank $3.9 million for defaulting on a loan to build condos in Blacksburg, Va.

An adviser to Rodriguez has said the coach was a victim of a Ponzi scheme.

___

Information from: The Detroit News, http://www.detnews.com