On Success & (Epic) Failure

My latest copy of Bank Director arrived in the mail Tuesday, and it has me reflecting on both success – and failure – in the banking world.

The 2012 Bank Performance Scorecard definitely highlights success, featuring a lot of “comeback banks” – and their CEOs are profoundly goal driven. Huntington Bancshares Stephen Steinour stated that his bank “wants to win”, and did so through focus on increased capital and growth in lending – Huntington landed at #2 of banks with $50 billion in assets and above. National Penn Bancshares, ranked #12 of banks $5 billion to $50 billion, raised new capital and strengthened its balance sheet in order to run a bank that is “clean, strong, and efficient”. Both banks were solidly profitable after posting huge losses in 2009. Will they perform even better in 2013?

Why is Georgia the #1 state for bank  failures?  The failure has been epic, with 79 bank  failures since the crisis began, $8.5 billion cost to the DIF, and dozens of directors facing FDIC lawsuits. While the collapse of the subprime mortgage market gets a lot of the blame, Georgia’s loose regulation set the stage. Will the remaining banks be stronger in the aftermath – or are there more failures on the horizon?

In the news:

Dodd-Frank likely isn’t going anywhere, Mr. Romney.
Happy Birthday, Dodd-Frank. Welcome to the Terrible Twos.
BofA, Citi and Wells Fargo offer the best online experience.


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