Sinking Small Banks Need A Peter Bailey

Ok to shed a tear for smaller banks getting squeezed by the nationals. Is there still room for Peter Bailey’s “Wonderful” S&L dream of providing housing for the little guy? Or has Henry Potter got us by the b****?

The picture ain’t lookin’ good. As a recent WSJ story noted, “Banks too big to fail are gaining deposits” at a record clip thanks to the latest financial industry crisis. Asks one regional banker, “How can I compete for new business with that big enchilada out there?”

Well, Mr. Bailey’s solution, first of all, was “not to panic” & rush into the greedy arms of a cynical Potter who’s scooping up deals at their expense. “But, my husband’s been out of work for a year,” reminded one of Peter’s long-time customers, “and we need” what money we have left to put food on the table. Bailey’s retort was to remind the lady & others pulling their money from his S& L about the personalized & caring service it had given them over the years. He asked: “Do you think Potter would have let you stay in your home” during the earlier financial crises?

Maybe THAT is what’s got the smaller regional banks worried like the Dickens now. That is, whether or not they had been giving the “personalized & carry service” that made them worth doing business with in the first place. If not, all the pleading & handwringing in the world may not be enough, as it did Bailey when he found a way to successfully duke it out with Potter.

Davd Soul