Monday, April 27, 2009

Like the Changing Tide

I sincerely hope that you have noticed that the mood of the banking industry has been changing. With Sheriff Obama at the reins, Government bailout money no longer has the lush excitement of Lottery Winnings for the banks. Especially now that the government has more restrictions, rules, and "rake-back" capability.
The world would be a nicer place with banks that recognise the changing conditions in the marketplace, and salvage their customers before putting their "tin begging cups" in the face of congress.
One of the banks I have dealings with just go cited by the OTS (Office of Thrift Supervision) for "systemic abuse of the Truth in Lending Act". This caused the bank to immediately hire 2 law firms just to whitewash their exposed behaviors. I hope the OTS keeps digging, because there may be more bad behavior that this bank is liable for.
Being a Bank customer for many years, I have always had a good relationship with lending institutions. The overt greed and willingness to "bend" the rules has made this a strained relationship with a "war of the roses" overtone.
Banks need customers; not just the "A" list, wealthy, and connected ones, but all of them. This makes for a healthy relationship, and products that meet the needs of multiple customers. When the banks (both regulated and UN-regulated institutions) lobby and win favorable changes in the rules, the customers are at risk, not to mention the effect on the worldwide economy.
I only hope the sheriff goes far enough to catch the bad guys, and put right a broken banking system. And that goes for the credit card bandits, er, banks, too!