'Culture is Like the Titanic': Week's Best Quotes
December 3, 2013 11:39 AM
The most notable quotes from American Banker stories of the previous week. Readers are encouraged to add their own observations in the Comments fields at the bottom of each slide.
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On a recent proposal to rein in deposit-advance loans:
"It's not what the consumers want and it's not what they need."
Jeremy Rosenblum, a partner at Ballard Spahr
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On Sen. Bob Corker's support for a rule requiring banks to put up 10% of the first-loss capital for mortgages they sell to Fannie Mae and Freddie Mac:
"The more he hears it doesn't work, the more he's forced to defend it and the harder it is to change."
Edward Mills, an analyst at FBR Capital Markets
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On how Rep. Mel Watt's eventual confirmation as head the Federal Housing Finance Agency could affect the mortgage market:
"It's a game-changer for mortgage credit availability."
Edward Mills, an analyst at FBR Capital Markets
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On a recent court ruling that is unfavorable to bankrupt banks' trust-preferred investors:
"They haven't been paid for five years and they're still not going to being paid."
Randy Dennis, president of DD&F Consulting in Little Rock, Ark.
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On the risk that undercapitalized banks might fail:
"They all try to give this sob story that the FDIC is sitting out in the parking lot, but the fact is there aren't that many banks that are failing right now."
Brett Jefferson, president of the hedge fund Hildene Capital Management
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On valuing bank deals based on price-to-earnings ratios rather than tangible book values:
"Valuing a deal by book has so many components. But earnings are, well, earnings."
Daniel Bass, a managing director at Performance Trust Capital Partner
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On why online banking customers have high expectations:
"They are judging your services compared to Zappos, Amazon and Google. They are not just comparing Harris Bank to Chase."
Mike Boyle, the chief executive at Perseus Technical Strategies
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On the criticism that banking's culture places short-term profit above long-term customer relationships:
"Culture is like the Titanic. It takes a long time to turn."
John Bowman, managing director and co-lead at the CFA Institute
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On why regulators are likely to adopt the FDIC's 'single point of entry' approach to resolving large banks:
"The big banks are a powerful lobby and they don't see anything they like as an alternative."
Dick Herring, a finance professor at the University of Pennsylvania's Wharton School
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