Jan. 12, 2011
It has been nearly two and half years since the Great Recession took hold of this great country. At that time, bankers were erroneously vilified as the cause of the economic turmoil.
While a few banks may have been a part of the problem, even President Obama noted in his original bank regulatory reform proposal that 94 percent of the subprime mortgage loans that were at the root of the chaos were made by nonbank mortgage companies. Yet he openly took unfair shots at bankers. Shameful!
Nearly all of the over 300 banks that have failed as a result of the recession were victims, as much as any homeowner who faced foreclosure.
If the banking industry is guilty of anything, it is guilty of failing to define what it is. Banks are financial institutions that take deposits from and make loans to the general public.
Banks are not mortgage brokers, independent mortgage companies, insurance companies, investment banks or finance companies. None of those companies are under the regulatory scrutiny of bank depository institutions. So let’s be fair and only call a bank a bank.
– S. Joe DeHaven