Coming out of the financial crisis so much attention, politically and economically, seemed to be focused on chants of “break up” the big banks. Irrespective of one’s view on the rationale of such a move — would global competitiveness potentially be exchanged for political expediency? Hadn’t some of the largest traditional commercial banks, such as JPMorgan Chase, effectively stepped up to deploy tremendous resources in helping resolve the haphazard ways of Great Recession poster kids like Lehman, Bear Stearns, Washington Mutual, etc.? Did some bailouts simply perpetuate the concept of moral hazard as few seemed to be truly held accountable during the chaos?
What is clear is that the concentration of banking assets continued to migrate to our nation’s largest institutions. As the chart below depicts, pre-crisis the five largest banks in the country controlled nearly $5 trillion, or approximately 46% of the industry’s total assets.
Fast forward to today, and the $9 trillion in footings at the nation’s five largest banks now account for more than 53% of the industry’s total assets. Side note, if you incorporate Goldman Sachs and its $900 billion balance sheet into the fold, since “technically” it obtained a banking charter during the financial crisis (while the aforementioned JPMorgan Chase did quite a bit of “clean up” work in growing to $2.6 trillion), they would rank #5 on this list and effectively push the concentration level to nearly 60% of the banking industry’s assets among the Top Six:Read Full Post
Disasters come in all shapes and sizes. Over the past couple of weeks, we have experienced three massive disasters. Two from Mother Nature that could not have been avoided, and one disaster that was man-made, Equifax, that should never have occurred. I have never experienced a hurricane and I hope that I never do. I have been the victim of identity fraud so the Equifax news triggered an immediate reaction.Read Full Post
Posted September 8, 2017 by Stephen D. Heckard.
Maintaining current technology is one of the most critical challenges that management teams must face. Technology provides the foundation for financial institutions to achieve goals and objectives. It is imperative that management teams keep abreast of current trends and industry-related concerns. ProBank Austin sponsored a complimentary webinar, Top Technology Concerns for Community Banks, on Friday, September 8. Our webinar was hosted by industry experts, Darla J. Brogan and Stephen D. Heckard, Senior Technology Consultants at ProBank Austin.