How is the news of the past couple weeks effecting your institution?
Brad G. asked 2 months ago
in
Banktastic
I Like It!3
It has indeed been nasty. What have you been hearing in your grapevine? No big deal?
Are your concerns being answered?
Chris L.
Our members / customers are outraged about the banking bailout, which they view as benefitting fat-cats on Wall Street while they’re struggling to make ends meet. Community FIs in general are getting painted with this brush, as our members want to know if their CU will also be the beneficiary of this boondaggle at their expense. We’ve had to do much as of late to make them aware of the fact that we were not a participant in the Wall Street practices and assure them of the safety and soundness of the CU.
Rusty H.
I agree with Chris on the paintbrushing. I don’t think anyone knows the ultimate conclusion but I’m sure it will be a major historical event that we will all look back on and say we made it.
From our standpoint the media has labeled this crisis as a banking issue when in fact it is more of a credit issue with investment banking and mortgage backed securities. The difference is as a bank we are monitored by the OCC and the “Fat Cats” just have to file with the SEC. From an IT perspective the regulators or examiners can be intrusive and we might be defensive but on the business end they make sure the operations and decision makers are sound. I think if the bigger shadow banks had this oversight we might prevent a repeat.
From a philosophical view the economy is heavily trend based and large swings are gonna happen…Damn that coffee was strong this morning!
Jeff C.
We’ve received a few calls from members asking questions about how we are affected. We have told them that we are still strong and not affected by the mess on Wall Street (internally). we have also posted our financials on our Web site, the same document that we keep posted in the lobby.
I agree with Rusty H. (dude looks just like Bill Gates in his avatar… strange! :P) that this is more of a credit issue. I guess we will all have to wait and see what happens with the government’s “rescue plan”...
Rusty H.
It’s funny you say that about my likeness to BG. You know I lost my paternity suit when I walked into the first inquisition with my iPhone3G and Macbook Air. I threw them for a loop though when they saw I was drinking coffee from McDonalds. hehe