I admit to knowing nothing about inner workings of banks but I believe I understand the outer workings. These days a bank looks more expensive than India’s Taj Mahal and therefore cost a fortune. Nepotism in banks is as common as petunias and that’s where they find qualified personnel. At least that’s always been my impression. And it is the banker that drives the best cars and constantly wears $800 suits, except when golfing at his club or on his tennis court near his pool. Think about it, have you ever known a poor banker. Recently a well-known bank “acquired” another bank. (That means picked it up for a song.) Somebody in that plush building stroked a check for ten million. Was that a good faith check or the final cost? Much of the money floating around in the banking world came from us via our President. Here is how it is in real life...a new little village bank struggles from day one to find a clientele willing to risk their money in it. Soon the bank amounts to something. Then bigger bank buys it and you need new checks. But where did that ten million come from to buy that little bank? The big bank uses part of a leftover, the difference between the infinitesimal interest they pay on your deposit and the gross amount they get for the loan on your house. Leftovers also cover such necessities as caddies, suits, cars and bonuses. And what drew you to that fat bank…and causes you to keep your cash in their vault? That’s easy…your money they spent on advertising. And perhaps you have noted that banks beget banks, they are all over the landscape.
8 comments:
We are fast going the way of the Canadian Banks. There are less than a dozen left because of reorganization, consolidation and decades of government induced income redistribution. In every big Canadian city stand grand buildings that once housed engines that drove commerce. Not much is left but the facade. Take a look and see how many banks have failed this year. The number will pale to what is coming next year.
But the bailouts are working
The new Towne Bank Branch in Harbourview is absolutely beautiful. Last night was their open house and candidly there is no other bank anything quite as nice in Hampton Roads. If they are as sucessful as they appear to be, Towne bank will continue to be a regional powerhouse for banking and investment. There was some talk of a branch in Downtown Suffolk and Smithfield. An expanding business in these times based here in Suffolk is great news.
A waste of shareholders money. How many banks have failed so far this year? 96. Smart business? I think not.
Pock is right about banks and bankers and there they were in a full-page ad cutting the ribbon for the new palace wearing $800 suits except for Chris Jones, a practical politician, and her ladyship our mayor. Why is it that “greats” cut the ribbon, why not the guys that built the bank wearing jeans and sweat soaked shirts? I noticed that Currituck Bank “joined” Towne Bank when in fact they were gobbled up. They tossed around some impressive numbers indicating measures of success. Those high marks hardly account for the pittance paid on deposits. I do better than that betting on checker games.
Chomp, crunch crunch crunch, chomp, crunch crunch crunch. Sooner or later they'll need Grandma Obama's elixer of TARP dollars to cure their indigestion.
Does the Chairman of that bank ever smile. Talk about being a sourpuss. Must be still smarting from helping finance the Garden Hilton in downtown.
You are right, you don't know anything about banking, lol.
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