The Washington Post column by Secretary Timothy Geithner on April 13, 2010 was a breakdown of the failings of the financial industry, and the explanation for the necessary reforms to avert the next financial crisis. The article was clear and precise in the breakdown of the system, and the regulations to be implemented to avoid a future crisis. However, the column did not address enhancing current regulations to insure restrictive measures in different aspects of risk behavior, and the bank’s fiduciary responsibility in offering programs to meet the needs of everyone in the bank’s service area. First, the enforcement or enhancement of current regulations such as the Regulation B or Equal Credit Opportunity Act (ECOA) would prevent the banks to insure risk tolerance is not utilized to decline opportunities to the bank’s service area. First, the bank could not decline a mortgage loan applicant in their footprint of service to avert upfront risk, with the capability to invest in … [Read more...]
Secretary’s column does not address fiduciary responsibility of banks
The roadmap to the future bank is via the consumer
The roadmap to repair the foundation of the traditional banking system while introducing a Future Bank 2.0 to foster a healthy consumer, community, and banking system must be championed by the financial services consumer. The current state of the consumer is riddled with many challenges including debt, the economy, job market, and falling home prices, and uncertainty in society. An additional challenge for the consumer has been the banks acting in their foreclosure methods and the reduction in outstanding lines of credit and increase in rates and fees without any notifications to existing bank customers including customers with excellent payment history and a good credit score. In the broad stroke of banks raising credit card fees and rates, Ann Minch of California was a recipient to a rate increase in January 2010 from 12.99% to 25.49% on a Bank of America (B of A) credit card. Ann Minch worked through the proper channels of customer service at Bank of America to resolve the issue … [Read more...]
Why are relationships important in real life and the real economy?
Why are relationships essential in real life? Real life minus relationships would cease to exist. Relationships provide the platform to merge abilities to obtain an outcome that could not be possible alone, and the forging of a relationship is the acknowledgment of trust in another individual(s) shared values or beliefs to unite and achieve a common goal. Why are relationships essential for the real economy? The two facts are factual about the American economy that has been essential to our economic growth since the end of WWII. First, the growth in outstanding credit year after year has been the driver to recovery in previous economic downturns and the driver to widespread prosperity in the American economy. Second, the primary avenue to provide accessible credit throughout the United States is the branch banking network located in every community. The special relationship shared with banker consumer/small business owner would insure a return to growth as long as this relationship … [Read more...]
Credit Union CEO provides hope and calm in the middle of economic storm
The twitter feed this morning produced an unexpected article from an author on exact state of the economy and the hope of recovery is with the small business owner. The access to credit was the main challenge to fund expansions in operations and employment as a result the stagnation in the economy. The article was detailing the credit unions efforts in lending to small businesses but limitations of business loans in relation to assets are not allowing the credit unions to make an impact to the economy. The article continues that legislation to increase in the cap would release the credit unions to lend money to small businesses with more vigor and the immediate impact would be noticed in the creation of new jobs. As the article concluded, the analysis was concise in the state of the economy in Main Street America. The author of the article was from a CEO of a credit union out of Macon, Georgia. The analysis was an assessment of a successful credit union or bank cannot be … [Read more...]
