PayThink

The mortgage crisis was enabled, if not exacerbated, by the fact that there were never concrete definitions for terms like “subprime” or “alt-A,” and thus little clarity among investors about what they were actually purchasing.

President Obama wants to levy a “financial crisis responsibility fee” on the 50 largest banks, to recoup expenses for the Troubled Asset Relief Program. The fee — more popularly known as the Tarp tax— could raise up to $90 billion over the next 10 years. But if the intent is for banks to repay society, wouldn’t it be better to have them perform a much-needed community service? Rather than fine banks, make them create jobs.

In at least one instance credit unions are finding themselves being lumped in with banks, and it's good. That's because in this case it's not the universe of "Banks," with a capital "B" that is typically preceded by "Big" and "Bad," but just the smaller, community banks that have a lot more in common with their not-for-profit brethren than they do the too-big-to-fail but not too-big-to-bail operations that belong to the same trade association.

If credit unions are a better deal financially, they offer better service, and you can make transactions nationwide, why are big bank branches springing up on street corners faster than Starbucks? Simple. While credit unions excel at service, big banks excel at sales.

The GSEs' restructuring will depend on who gets control of their key money-making operation — the credit-guaranty business. Big banks — more than investors or the government — look to be the most viable option.

Rep. Jackie Speier, D-Calif., was a thorn in the banking industry's side long before her current fight to force leverage limits on big institutions.

There was another turning of the page in the Official Book of Credit Union History recently with news that the Michigan Association of Credit Unions (MACU) will be absorbed via merger by the Michigan Credit Union League.

Let's talk a minute or two about IT backup being the beginning of your disaster planning. I absolutely agree with the author that it isn't enough, but for a different reason.

Everyone faces problems. Every organization faces problems. They are just part of life. What's important is how we deal with those problems, whether we learn and grow from them, and if we remain stable and secure in spite of them.

Seems like there's something for everyone in Jamie Dimon's letter to JP Morgan Chase shareholders. (And at 37 pages, there should be.)