BankWise - April 4, 2019
“Give him credit for some good points, but Moynihan goes stone tone-deaf with presumptuous, patronizing declaration of “no division” [in our industry].”
ICBA Chairman Preston Kennedy on comments made by Bank of America Chairman and CEO Brian Moynihan on Tuesday.
Fed Governor Mikki Bowman tackled ag banking and rural issues in two recent speeches to the National Agricultural Credit Conference and the Independent Community Bankers of New Mexico.
Bowman stressed the challenges faced by residents in rural areas, including access to broadband and educational opportunities. She stressed that discussions around these issues tend to be “overly broad and simplistic” while ignoring positive aspects.
“I am optimistic about the future of rural America,” Bowman said. “The narrative of rural decline is too sweeping and brushes aside the diversity of the rural experience. Just as many cities thrive while others struggle, there are deteriorating rural communities and rural communities that are thriving and growing.”
Ag-dependent areas are facing struggles, Bowman acknowledged however, including historic recent flooding in the Midwest. Community bankers up to their elbows in loan workouts for struggling ag customers really need to understand what the carryover debt looks like and be cautious to not extend that debt year over year, she advised bankers in New Mexico.
Bankers looking to restructure loans need “need to understand how it originated, how long it’s been financed and whether or not there’s an ability to repay,” she said.
Tim Sloan left his position as head of scandal-plagued Wells Fargo last week after a little more than two years as president and CEO. He is replaced temporarily by General Counsel C. Allen Parker while the bank searches for an outside replacement.
Wells Fargo has been exhibit A in illustrating the difference between large banks and community banks for the last several years. How do we stop big-bank abuses? Consumers need to vote with their feet!
As Jim Amundson put it in a Pioneer Press oped last year, “The American public has paid again and again for Wall Street bank scandals, deceits, manipulations and poor decisions….Support the local economy in another way — bank locally.”
ICBM’s CONNECT Expo on April 24 will feature Edge One, Inc., as a Platinum Sponsor.
Recent studies have shown that 73 percent of bank executives indicated that managing their operations is their greatest challenge, and 31 percent said that it’s important or extremely important to outsource ATM operations.
Corn market prices took a sharp nosedive based on higher than projected USDA estimates for intended 2019 U.S. corn acreage and current corn stocks. Results for soybeans were mixed, also based on recent reports.