Retail Banking Strategies

I’ve read lots of analyses of the current economic crisis. While the Wall Street Journal, New York Times, Wharton Review and others have done commendable work, nevertheless I’ve always felt something was missing.

Here’s the best explanation I’ve seen: Subprime Math

A little humor, and some days a lot of Bourbon, will get us through!

The Bank Administration Institute has created a new community for retail banking professionals — it is a great resource for networking, information sharing and participating in discussion forums.

We have been pleased to be a partner with the BAI in conferences and training programs over the years, and honored that they asked us to host a Retail Banking Strategies blog on this new website.

Please join this new community. It is a particularly worthwhile resource for banking professionals.

Last night my wife and were flipping the channels before going to bed. High Noon was playing — the classic Gary Cooper/Grace Kelly movie about a sheriff trying to save his town from destruction. We watched in amazement at the scene where Cooper goes to the church to ask for help against almost certain calamity. Big problem, big personal risk, and no assurance it will all work out unless everyone pulls together.  We didn’t create this problem, why do we have to risk our lives solving it.  If we had turned off the video and just listened to the angry words back and forth, we might have thought we were listening to CNN or MSNBC. Continue reading →

I’m impressed with bankerstuff.com. This site was created in 2007 as a one-stop online source compiled specifically for bankers by bankers. It boasts the world’s most comprehensive and up-to-date Internet portal for banking and financial information available on the web. This includes exclusive content and events, job searches, research, and financial and payments related news.

I’m happy to be a contributor to the site along with Tom Brown and others. Take a look – I think you’ll find valuable content that will help keep you up to date on latest industry news as well as provide information that will help you better manage your business. I’m particularly impressed with the webinars and research information that is all easily available in one place.

We are pleased to announce that Peak Performance Consulting Group World Headquarters is now in Austin, Texas. Why move from Grand Rapids, Michigan to Austin? It brings us closer to the majority of our clients (even Comerica moved it’s headquarters from Detroit to Dallas!). It is a better transportation hub to reach clients on both coasts. It expands the talent pool – University of Texas, Sheshunoff, D&B/Hoovers are all headquartered here. And the Texas economy is dynamic – American Banker even publishes a special Texas edition, its- only state specific version.

Want more reasons why we moved from Michigan to Austin? Continue reading →

More bank failures on the horizon? National City reported “We’re no IndyMac” as the bears circled.

Richard Bove, a well respected banking analyst, says there may not be many others at risk of failure. In the wake of IndyMac he reviewed the performance ratios of all banks with assets greater than $5 billion to assess the probability of failure. His conclusion: there are a few smaller banks that may be on the edge, but the only large bank at significant risk is WAMU.

Overall, the data “indicate that the system is not anywhere near the danger that existed in the late 1980s and early 1990s despite all the whining by public officials,” he wrote. “Perhaps the second-quarter numbers will prove them right.”

Bove has a great track record. But he also published a report on March 20 titled “The Financial Crisis is Over.” We hadn’t hit bottom then, and it sure doesn’t feel like we’re there yet.

For a readable review of his research note and comments on the Schumer/OTS pissing contest, see “Few other banks appear on brink“.