“Too Big To Bank There”
Al Lewis, a columnist for Dow Jones Newswires recently wrote an editorial published in the Wall Street Journal on March 24, 2012 analyzing the Federal Reserve Bank of Dallas’ 2011 Annual Report, which contained a 34 page essay, “Why We Must End Too Big to Fail—Now”.
Here are some interesting takeaways from that report:
- More than half of banking industry assets are on the books of just five institutions.
- Regarding these five institutions, regional Fed President Richard Fisher stated, “They were a primary culprit in magnifying the financial crisis and their presence continues to play an important role in prolonging our economic malaise.”
- “The term “Too Big to Fail” disguised the fact that commercial banks holding roughly one-third of the assets in the banking system did essentially fail, surviving only with extraordinary government assistance,” the essay reads.
- “A financial system composed of more banks-numerous enough to ensure competition but none of them big enough to put the overall economy in jeopardy—will give the United States a better chance.”
Mr. Lewis’ solution to these issues: “There is only one thing you can do. Find a well-managed community bank or credit union that hasn’t been bailed out or settled allegations of fraud and put your money there.”
Regents Bank is exactly that kind of organization. Although Regents falls under the Grandpoint Capital umbrella, which is estimated having $2 billion in assets by the end of 2012, Regents is community based, financially solid and is managed by local business leaders that have received numerous community awards for their knowledge and expertise working with San Diego and Vancouver businesses for over 10 years. Perhaps it’s time for you to say goodbye to the “big banks” and establish a relationship with a local, community bank.
Learn more about what Regents offers local businesses at www.regentsbank.com.
Federal Reserve Report and Essay information provided courtesy of Al Lewis, Dow Jones Newswire Denver. His blog can be found at http://newswires-americas.com/tellittoal/
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