BankThink

Finally, a working example of the public and private sectors cooperating to address this whole asset backed securities thing: JPMorgan Chase revealed today that it had been selected to run a program through which Federal Reserve will buy mortgage-backed securities issued by Fannie Mae, Freddie Mac and Ginnie Mae.

The nation´s banks have overextended themselves with questionable loans in a time of easy credit, and their balance sheets are a mess. The federal government has been slow to react to the problem, and its first solution of a voluntary pool to loan money to troubled banks has not worked. Manufacturers´ woes in Detroit threaten to spread and undermine confidence in the banking system. Some policymakers are advocating for a temporary nationalization of the banking system while others argue that no matter how bad it may seem at present, market solutions will provide better and more stable long-term solutions. It's probably not what you think--this is a historical snapshot from 1933.

More often than not, remakes of classic American films flop, and Citigroup´s dramatic do-over of The Incredible Shrinking Man may be no exception.

This week is a week of talking and talking and talking about the financial crisis and how to fix it. Two versions of a stimulus bill now exist and must be reconciled as they circulate Congress. Meanwhile, the first soft notes of regulatory restructuring will sound, and lawmakers will face off over what the rapidly dwindling Tarp program should really accomplish.

Stephen Covey's advice, "Begin with the end in mind," provides a good starting point for effective research, and especially the best research methodology to use. In these challenging times, it's important to focus your research investment wisely. And with research, one size truly does not fit all.

I recently checked out the home pages of a number of credit unions and local banks and was amazed to find no obvious mention of the current financial crisis.

We recently interviewed Mr. Arthur Amundson, one of our past board members who served on the board and as chairman from 1952 to 1983. Mr. Amundson recently celebrated his 100th birthday, meaning he was born the same year credit unions were created in the U.S., and shared some of his memories of A+ Federal Credit Union over the years.

The one personal anecdote from my credit union career that reflects the essence of credit unions was when I was Senior VP at Kirtland FCU in Albuquerque, N.M. Among other credit union responsibilities, at that time I had oversight of the member services area. Department staff and member interaction usually involved fairly routine transactions with an occasional special request, but the one request I would never have expected and still remember today as truly reflective of the special nature of credit unions, was one that was made by an older member named Aleda. Although she transacted business at the credit union on a regular basis, she rarely struck up a conversation or asked for assistance from staff. She was very quiet and reserved. Over the years, she placed her life savings in accounts at the credit union.

Watch the evening news (if you can bear it) and it would seem your credit union's lobbies and branches should be anarchy right now. Members borrowing your scissors to cut up plastic cards. Members handing over their keys - to their homes. Members lined up out the door to use your coin-counting machine as they're down to their last dimes. Drive-thrus inoperable because you've parked the repo's there, too.

Higher up this year on the list of things Americans care less about is the latest World Economic Forum meeting in Davos, Switzerland. Are the Davos attendees hatching a plan to use their own money to rescue the global financial system? No. Are individuals among them finally stepping forward to declare their guilt as participants in the credit bubble that led to the global chaos we´re currently experiencing? No. Did some of them arrive in private jets? You betcha.