Risk to your business and strategic planning if your local or regional bank fails?
What are your thoughts on this article -
http://www.fiercefinance.com/story/more-bank-failures-coming/2009-09-17?utm_medium=nl&utm_source=internal
which is based on a Business Week article comparing the 828 bank failures in the early 90s downside, versus 117 bank failures so far in 2008 and 2009.
Are there 711 more bank failures coming? If so, how does that impact your strategic planning? There is a reason for the phrases fortress balance sheet and flight to quality.
http://www.fiercefinance.com/story/more-bank-failures-coming/2009-09-17?utm_medium=nl&utm_source=internal
which is based on a Business Week article comparing the 828 bank failures in the early 90s downside, versus 117 bank failures so far in 2008 and 2009.
Are there 711 more bank failures coming? If so, how does that impact your strategic planning? There is a reason for the phrases fortress balance sheet and flight to quality.
Posted by FiscalDoctor com at 9/21/2009 9:57 AM 
Categories: contingency planning,business growth,profitability,risk,Enterprise Risk Management,due diligence,ERM,corporate governance
Tags: contingency planning business growth profitability risk Enterprise Risk Management due diligence ERM corporate governance
Categories: contingency planning,business growth,profitability,risk,Enterprise Risk Management,due diligence,ERM,corporate governance
Tags: contingency planning business growth profitability risk Enterprise Risk Management due diligence ERM corporate governance
I've been following the bank failures for months. 40, 70, 90... yes, it may reach 300 or more. I hadn't realized the number went that high in 1990. I think this time around will be worse than 1990. I remember 1990 and this is no 1990. (so to speak) In 1990 the world of (mini)computers was still dynamic and the United States pretty much owned it. We were still living the Massachusetts Miracle. At this point we have exported most of our lower level jobs, and the powers that be are fighting the creation of new manufacturing jobs in this country by exporting new industries like solar to China. China is pleased to oblige. I wonder if people can hear that "giant sucking sound" NOW?
The US needs one or more industries that will produce real wealth. Having been in both technology and financial services, the difference is that one contributes to the real wealth of the world while the other skims off the top.
As a country we need more students committed to a scientific education, more basic R&D, a single payer healthcare system so we're on an even playing field with the rest of the developed world, and some good old time religion ... I meant to say "financial system regulation," of course. We need a rich working environment where skilled and unskilled workers, young and old, can find gainful employment in order to keep the country in a leadership position. We need a NEW new thing. We are on the road to becoming a sad, third world country where our biggest export will be foodstuffs grown and harvested by giant agricultural corporations.
Putting all that aside for the moment, I used to have the impression that one or two very large banks were a good thing for every country in that they could reinforce the prestige of that country's government. Bank of China, as an example. The US is no longer in that position. The Mellons and the Carnegies of the past are long gone. The people at the top of the major US financial institutions are part of the problem, not part of the solution. Unfortunately, thoroughly enforced regulations seem to be the only hope. I'd like to see more small banks thriving, but don't have a sense of whether that's possible.
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Thanks for your thoughts.
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