Writer: Tom Bengtson

Lawmakers, Fed to blame for banking crises, Hoenig says

Whenever there is a banking crisis, bankers get blamed, but a former FDIC Vice Chair and 38-year Federal Reserve veteran told bankers the real culprits are those propagating undisciplined fiscal policy and bad monetary policy. Speaking at the Iowa Bankers Association convention, Thomas Hoenig said the last three major crises were caused by huge increases in federal spending and reactionary increases in interest rates that wreaked havoc on the economy and at the nation’s banks. [Continue]

Reminders for regulators

Regulatory agencies are supposed to enforce laws written by Congress. Activist regulators who want to take matters beyond the letter of the law have a right like anyone else to work the political system to change the law. [Continue]

Regulation — then and now

Things change over time, and if you go back far enough, differences can be dramatic. I cite the regulatory environment for community banks as an example. [Continue]

Iowa banks strong despite NIM pressure

While shrinking net interest margins are squeezing earnings, banks in the state of Iowa are in very good condition, concurred three regulators speaking on a panel presented at the 52nd annual convention of the Community Bankers of Iowa in Okoboji on July 20.  [Continue]

Maybe we don’t need to change deposit insurance

The systemically-important or too-big-to-fail advantage increases the relative cost of funding for community banks. Government can only resolve this unlevel playing field by protecting all deposits at all banks. But that doesn’t mean it should do so.  [Continue]