In the late 1980’s and very early 1990’s I did a weekly financial show on a local small AM station. The S&L crisis was fresh in mind and commercial banks were also starting their merger mania.
My big stump / rant was about what I called “consolidation of capital”. My theory was that in the future we will not have your local banks but banks that are owned by regional or national banks. In my area of the USA that part has came true. Fifteen years later consolidation of banks is continuing and I feel eventually B of A, Wells Fargo and perhaps 3 other banks will control (holding companies) all local and regional banks.
Way back then I would tell listeners that loan decisions will not be made on a local level. This will cause capital (loans) to flow to areas that the regional / national banks have deemed centers of profit. That center of profit may not be your small town! That has come true.
As a Registered Rep. I saw that banks were starting to show a large amount of their profits were not coming from the money spread but were coming from new fees. Take a look at today’s bank and you’ll see fees are a major profit center.
Banks weren’t happy ….they wanted more so they pressed for an end of the Glass – Stegall Act and pressed for bank insurance sales. That came to pass.
Now the banks want to pay the tellers for steering customers to the insurance sales center, be able to talk about insurance before giving the OK to a loan and currently banks in my State are not controlled by the Do Not Call Act. I went round and round with my House Rep guy about how banks do not need to comply with Do Not Call rules.
In the last paragraph I am confident will come to pass. Banks are very, very embedded in the political process. I remember quizzing the NASD about why bankers in the banks Trust department didn’t need to be Series 7 licensed? The NASD said the reason is that Bankers are beyond reproach. Hm…..do bankers walk on water?
I especially like the egregious idea of offering insurance before a loan is approved. So you have Joe six pack sitting there hoping to get that home or auto loan. The banker says, by the way we also recommend the purchase of disability, life etc. to protect yourself and us. Does anyone think that the banker doesn’t have any influence (conflict of interest) over the insurance offer.
In that movie, The Sundance Kid, they said “Who are those guys.” Yes, who are those guys?
In the late 1980’s and very early 1990’s I did a weekly financial show on a local small AM station. The S&L crisis was fresh in mind and commercial banks were also starting their merger mania.
My big stump / rant was about what I called “consolidation of capital”. My theory was that in the future we will not have your local banks but banks that are owned by regional or national banks. In my area of the USA that part has came true. Fifteen years later consolidation of banks is continuing and I feel eventually B of A, Wells Fargo and perhaps 3 other banks will control (holding companies) all local and regional banks.
Way back then I would tell listeners that loan decisions will not be made on a local level. This will cause capital (loans) to flow to areas that the regional / national banks have deemed centers of profit. That center of profit may not be your small town! That has come true.
As a Registered Rep. I saw that banks were starting to show a large amount of their profits were not coming from the money spread but were coming from new fees. Take a look at today’s bank and you’ll see fees are a major profit center.
Banks weren’t happy ….they wanted more so they pressed for an end of the Glass – Stegall Act and pressed for bank insurance sales. That came to pass.
Now the banks want to pay the tellers for steering customers to the insurance sales center, be able to talk about insurance before giving the OK to a loan and currently banks in my State are not controlled by the Do Not Call Act. I went round and round with my House Rep guy about how banks do not need to comply with Do Not Call rules.
In the last paragraph I am confident will come to pass. Banks are very, very embedded in the political process. I remember quizzing the NASD about why bankers in the banks Trust department didn’t need to be Series 7 licensed? The NASD said the reason is that Bankers are beyond reproach. Hm…..do bankers walk on water?
I especially like the egregious idea of offering insurance before a loan is approved. So you have Joe six pack sitting there hoping to get that home or auto loan. The banker says, by the way we also recommend the purchase of disability, life etc. to protect yourself and us. Does anyone think that the banker doesn’t have any influence (conflict of interest) over the insurance offer.
In that movie, The Sundance Kid, they said “Who are those guys.” Yes, who are those guys?