Go After the People, Not the Banks

I made a post a while ago about the revolving doors here at the banks in Minnesota. How one person (true story) ran a bank into the ground with such bad commercial lending, ended up becoming the CHIEF CREDIT OFFCIER of a bank just down the road.

Another “president” was heralded for her “great” tenure at a local bank here in Minnesota as she left for greener pastures at a bank out east, only to find out the bank she left was left in shambles after reckless and galactically stupid lending practices.

The stories go on and on.

However, this brings up a very important point if we are ever to improve our financial system and stop another such debacle from happening again. The regulators have to go after the people who did this, not the banks.

I don’t know of one bank in Minnesota that hasn’t purged itself of its senior and executive management in the past 3 years. The problem is they just replaced their incredibly shitty (I only use the crass term as it is the only term that conveys the true shittiness of their managerial ability) management team, with other shitty management teams from other shitty banks.

The consequences can reliably be predicted to be, of course, shitty.

Since we’re not targeting the problem (the people who caused this), but rather the entities or shells they used to cause this economic crisis (the banks), the problem will continue and there will be no genuine justice.

I asked an insider in the regulatory world who shall remain nameless if they authorities were going after the people or the banks and s/he said, unfortunately they’re going after the banks, not the people.

Grand. The OTS, the NCUA, the OCC and the FDIC are not targeting the cancerous scumbags who are corrupting the system, but the vehicles or legal entities they infect. It seems banks will be forever in perpetuity, shitty.