From LaVern F. Isely
Monroe
To the editor:
The Oct. 21-27, 2013 issue of Bloomberg Businessweek wrote an exceptional article about rural banks written by Brendan Greeley titled "Rural Banks Know Something Big Banks Don't." I quote: "The FDIC uses $1 billion in assets as a cutoff for its definition of a community bank, the vast majority of which operate in three counties or fewer. And while these smaller institutions have lost customers to larger banks, the decline has been far less dramatic in rural counties, where community banks still hold 70 percent of deposits. What hasn't changed over 30 years is that the middle of nowhere still needs a bank."
The facts they were emphasizing was that the smaller banks do a much better job because they know their customers and they aren't going to take advantage of them and they can't be greedy and sell them a bad loan because you might be sitting next to them in your local church.
Since 1980, the number of banks has decreased by more than half to 6,000 ,stating that they didn't get any better as they got bigger. Now, compare this to Jamie Dimon, CEO of JPMorgan, who was being considered for the Treasury job and until U.S. Justice Department started investigating the bank, the roof fell in. While JPMorgan was fined $13 billion, which was two-thirds of its 2012 profit, Mr. Dimon didn't even get fired, even though his bank did misplace $6 billion. These disasters also happened to other big investment banks on the East Coast.
What would ever happen if these big investment banks ever gained 70 percent of the deposits? Do you think the FDIC could ever bail them out with that amount of money that they were supposed to be watching? Big investment banks don't want any regulations after Glass-Steagall was eliminated. Banks even resented the fact that President Obama passed the Dodd-Frank Bill to put on some regulations and are trying just as hard to kill that.
While my Republican friends listen to Fox News and Rush Limbaugh for their news sources, I listen to PBS programs - Bill Moyers, "Frontline," "Newshour" and weekly read Bloomberg Businessweek. Investment banks, hedge funds and private equity as well as the growing, unregulated, toxic derivatives market, which is now over $1 quadrillion, running wild, will ruin our economy.
Both political parties must separate honest banking from Wall Street scams.
Monroe
To the editor:
The Oct. 21-27, 2013 issue of Bloomberg Businessweek wrote an exceptional article about rural banks written by Brendan Greeley titled "Rural Banks Know Something Big Banks Don't." I quote: "The FDIC uses $1 billion in assets as a cutoff for its definition of a community bank, the vast majority of which operate in three counties or fewer. And while these smaller institutions have lost customers to larger banks, the decline has been far less dramatic in rural counties, where community banks still hold 70 percent of deposits. What hasn't changed over 30 years is that the middle of nowhere still needs a bank."
The facts they were emphasizing was that the smaller banks do a much better job because they know their customers and they aren't going to take advantage of them and they can't be greedy and sell them a bad loan because you might be sitting next to them in your local church.
Since 1980, the number of banks has decreased by more than half to 6,000 ,stating that they didn't get any better as they got bigger. Now, compare this to Jamie Dimon, CEO of JPMorgan, who was being considered for the Treasury job and until U.S. Justice Department started investigating the bank, the roof fell in. While JPMorgan was fined $13 billion, which was two-thirds of its 2012 profit, Mr. Dimon didn't even get fired, even though his bank did misplace $6 billion. These disasters also happened to other big investment banks on the East Coast.
What would ever happen if these big investment banks ever gained 70 percent of the deposits? Do you think the FDIC could ever bail them out with that amount of money that they were supposed to be watching? Big investment banks don't want any regulations after Glass-Steagall was eliminated. Banks even resented the fact that President Obama passed the Dodd-Frank Bill to put on some regulations and are trying just as hard to kill that.
While my Republican friends listen to Fox News and Rush Limbaugh for their news sources, I listen to PBS programs - Bill Moyers, "Frontline," "Newshour" and weekly read Bloomberg Businessweek. Investment banks, hedge funds and private equity as well as the growing, unregulated, toxic derivatives market, which is now over $1 quadrillion, running wild, will ruin our economy.
Both political parties must separate honest banking from Wall Street scams.
