Airport’s bank tiff is settled

The board finally picks Citizens Bank, but some harsh words still fly.

“You’re an ass, just apologize.”

Robert Cordaro Airport board member to a colleague

PITTSTON TWP. – The nasty four-month fight about the selection of a new bank for the airport ended Thursday with the outgoing board chairman calling for changes in how the body conducts its business.

The board approved the selection of Citizens Bank as the depository for millions of airport funds that twice appeared to be going to Landmark Bank of Pittston.

Of the seven banks that applied, Citizens offered the highest interest rate, 4.06 percent, as well as online banking, free checks, no fees or charges for all accounts and courier service.

But the process that led the airport board to select Citizens has to be improved, said chairman and Luzerne County Commissioner Todd Vonderheid.

“There are inherent conflicts and I believe that issues like this are going to keep coming up and creating embarrassment when there’s no reason for embarrassment at all,” he said. “There’s been no wrongdoing whatsoever and no sense of impropriety.”

Two times the board, made up of commissioners of Lackawanna and Luzerne counties, backed away from approving Landmark as the airport bank.

The first time occurred in the summer, after it wanted to dispel any sense of favoritism because board vice chairman and Lackawanna County Commissioner Robert Cordaro sits as a bank director.

The second time happened last month after airport staff opened the proposals from 10 banks as they arrived rather than waiting until the submission deadline.

Vonderheid called for the board to develop uniform policies of airport governance. As it stands now, he said, the counties have different governing rules that “are not clear and laid out for us here sitting on this combined board.”

He failed to persuade Cordaro.

“Look, we got to a better place because Landmark approached us,” Cordaro said. “That’s a good thing. But the problem, Todd, was not the governance structure. The problem was those who govern trying to play politics.”

Cordaro proceeded to identify Lackawanna County Commissioner Mike Washo as the source of the board’s problems.

“He’s the person who questioned the integrity, not anybody else. That’s how this all started. One person, Commissioner Washo, questioned my integrity. He questioned the integrity of the management team. He questioned the integrity of the board.”

Cordaro and Lackawanna County Commissioner A.J. Munchak, member of the Republican majority, demanded an apology from Washo, a Democrat who refused to comply.

“Actions and words have consequences and accusations have consequences,” Cordaro stated. “You don’t want to accept them so you want to back away from them without apology. Just admit you were wrong and apologize and it’s over and we move on.”

Washo shot back at Cordaro’s tirade saying the board, rather than he alone, decided to ask other banks for proposals. “You know everything and that’s why you’re failing at everything you’re trying to do in government.”

Cordaro chuckled and said, “You’re an ass, just apologize.”

What are people saying about mortgages today:

Rates on 30-year mortgages edged down last week to a seven-month low. Mortgage-giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages fell to 6.3 percent, down slightly from 6.31 percent two weeks ago. It put rates at the lowest level since they were at 6.24 percent the first week of March.

Bank of Hawaii, Central Pacific Bank, Territorial Savings Bank and Wells Fargo Home Mortgages all cut their 30-year mortgage rates to 5.75 percent this week.

Most people think of a mortgage as a means to an end. After all, you buy a house, not a home loan. But a mortgage is much more than the path to homeownership. It is a financial instrument that must be managed, just like any other financial investment.