Community bankers are right to be wary. This is the pattern of practice we've witnessed since at least 2008: large banks engage in risky behavior to which regulators turn a blind eye, legislators grandstand and create more onerous legislation which is pushed down across the industry. All of this ignores the core problem: regulators failed to protect depositors by failing to enforce regulations and industry norms with uniformity.
------------------------------
Travis Renfrow
CFO;Chief Financial Officer
American Bank & Trust Company, Inc.
Bowling Green, KY
------------------------------
-------------------------------------------
Original Message:
Sent: 03-13-2023 16:47
From: Rob Blackwell
Subject: Tuesday Topic: Raft of Questions Raised by Regulators' Plan to Avert Crisis
Everything, everywhere, all at once-that's how the past few days have felt for a lot of bankers.
Questions multiplied after the Fed, FDIC, and Treasury moved over the weekend to protect customer deposits-including uninsured deposits-after Silvergate, Silicon Valley Bank, and Signature bank all failed within days of each other. To alleviate liquidity pressure at other banks, the Fed announced the creation of a new emergency lending program.
Liquidity is what we do here at IntraFi, so while Peer Intelligence avoids marketing IntraFi products, I'm making an exception today. ICS and CDARS provide vital access to the safety of FDIC insurance. If you have any questions, please review our statement on deposit safety or call us directly at (866) 776-6426.
There will be fallout from the government's intervention; the only question is how much and how far-reaching. Is legislation likely, after President Biden said he supports Dodd-Frank 2.0? What about tougher regulation, especially in the form of more attention to fast growth and asset concentrations? Will Too Big to Fail become an even larger problem for community banks? Will monetary policy ease up? And finally, how do you feel about the FDIC using your insurance premiums to cover billions in uninsured deposits?
While the rescue solved an immediate problem, it's created an uncertain future for bankers.
------------------------------
Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
------------------------------