Peeking Under the Kimono: A Big Banker Speaks Out – NYTimes.com
This is a personal opinion post by a 35 year veteran of the banking industry. (Just so you know I didn’t write it, I would have been 8 when I started in the business). I think he’s got some good insights into banking and the way things are. Read some excerpts and then click on the link below to to read the whole thing…..
The government has already done plenty for the big banks. It needs to stop worrying about them now……
So far, despite doling out more than $125 billion in new capital to banks, the government has been unwilling to do anything more than politely ask the banks to make more loans. That approach is never going to work……
Since 1999, the government has issued several guidelines to the banks, warning them of the potentially disastrous consequences of diving into the risky subprime mortgage market. It has urged them to curtail this behavior. The banks refused to listen and went head-long into that market, driven solely by greed…..
For the government to now believe that the big banks are somehow going to have an epiphany and change their behavior is delusional.
……banks need to re-establish the old standards and verification processes that served the banking system so well for so long. And they need to once again look the borrower in the eye instead of relying on a credit scoring system that is doing far more harm than good.
Peeking Under the Kimono: A Big Banker Speaks Out – Executive Suite Blog – NYTimes.com.
