Construction Reinvented.
Banks That Shunned Subprime Loans Ask Why They Are Paying for Wall Street's 'Greed'
TCF Financial Corp., (Wayzata, MN) a bank that never made a subprime loan and hasn’t lost money since 1995, is asking why it should help clean up the mess made by Wall Street.
“I’m kind of bitter,” William Cooper, chief executive officer of the 448-branch bank, told Bloomberg reporter Linda Shen. Cooper says that over the years TCF has invested about $1 billion in the Federal Deposit Insurance Corp.’s fund that guarantees bank deposits. “We pay for the excesses of our competitor over and over again.”
TCF is among more than 8,300 banks and lenders insured by the FDIC facing increased fees and a one-time “emergency” charge designed to raise $27 billion this year for the agency’s depleted coffers. Community banks may take a 10 percent to 20 percent hit to 2009 earnings even if the FDIC halves that charge, said Camden Fine, president of the Independent Community Bankers of America. Community lenders “are feeling like they are paying for the incompetence and greed of Wall Street,” Fine said this week in an interview.
The ICBA and its 5,000 mostly locally owned member banks are rebelling against the costs, as well as curbs on pay and business practices imposed on recipients of U.S. capital after public outrage over bonuses and perks. Community banks rely more on deposit funding, so they suffer a “much heavier burden” as a result of deposit insurance proportionate to size than peers such as New York-based Citigroup Inc. and Wells Fargo & Co., with its headquarters in San Francisco, Fine said.
Read the full story here.
“I’m kind of bitter,” William Cooper, chief executive officer of the 448-branch bank, told Bloomberg reporter Linda Shen. Cooper says that over the years TCF has invested about $1 billion in the Federal Deposit Insurance Corp.’s fund that guarantees bank deposits. “We pay for the excesses of our competitor over and over again.”
TCF is among more than 8,300 banks and lenders insured by the FDIC facing increased fees and a one-time “emergency” charge designed to raise $27 billion this year for the agency’s depleted coffers. Community banks may take a 10 percent to 20 percent hit to 2009 earnings even if the FDIC halves that charge, said Camden Fine, president of the Independent Community Bankers of America. Community lenders “are feeling like they are paying for the incompetence and greed of Wall Street,” Fine said this week in an interview.
The ICBA and its 5,000 mostly locally owned member banks are rebelling against the costs, as well as curbs on pay and business practices imposed on recipients of U.S. capital after public outrage over bonuses and perks. Community banks rely more on deposit funding, so they suffer a “much heavier burden” as a result of deposit insurance proportionate to size than peers such as New York-based Citigroup Inc. and Wells Fargo & Co., with its headquarters in San Francisco, Fine said.
Read the full story here.
Views: 0
Tags: special report, subprime mess
Comment
Sponsors:
Photos
Subscribe Now!
Home construction and building construction technology blog from the editor of Building Systems. An online community for builders.
© 2012 Created by Troubleshooter.
You need to be a member of Building Systems: Construction Reinvented to add comments!
Join Building Systems: Construction Reinvented