Community Bankers React to Chase's Trading Loss
May 15, 2012 11:14 AM
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JPMorgan Chase must "realize that they don't have a clue as to how much risk they have on the books. It's not that anybody there are bad people. It's just impossible to keep track of [the risk.] It's just too big. You can't figure it out."
Rusty Cloutier, president/CEO, MidSouth Bancorp in Lafayette, La.
"This is riling people up that banks are bad and that banks are greedy and poor managers of risk. We've had pretty lousy reputational risk the last three years and this doesn't help."
John Corbett, president/CEO, CenterState Bank of Florida in Winter Haven.
"The thing everybody has to keep in mind is that JPMorgan Chase makes $16 billion to $18 billion a year in profits. So what if they lost [a small fraction] of their profits?"
Gerald Lipkin, chairman/president/CEO, Valley National Bancorp in Wayne, N.J.
"It's not going to sink Chase, but now they'll be totally distracted with regulatory oversight and congressional hearings, and they're going to take their eye off the ball. Community banks can capitalize on this."
William Moss, president/CEO, Community Partners Bancorp in Middletown, N.J.
"It doesn't make a difference to me if you're a giant bank or a community bank, we're in a risk business and you've got to have the policies and procedures in place so [risk does] not bring down the ship."
Rich Dailey, president/CEO, Apollo Bank in Miami
"The market reacted, JPMorgan Chase lost $15 billion in market capitalization and shareholders took it on the chin. That's what should happen."
Frank Sorrentino, chairman/CEO, North Jersey Community Bank in Englewood Cliffs, N.J.
