Industry 'Eating Its Young,' Scapegoating Consultants, Foreclosure Deal Debacle: Quotes of the Week
April 16, 2013 11:00 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.(Image: Fotolia)
On the increasing pressure regulators are putting on big banks:
"I hope at one point we declare a victory and just stop eating our young."JPM's 1Q Revenue Drop Bad Omen for Rest of Industry
- Jamie Dimon, JPMorgan Chase (JPM) chairman and chief executive
Related Article: (Image: Bloomberg News)
On why growing through deals is the best way to keep investors happy:
"Look at the stats. The bigger banks trade at a higher multiple of book value. The market says size matters."
- Jim Mitchell, president and chief executive of Puget Sound Bank (PUGB)
Related Article:
On why acquisitions aimed at increasing assets are bound to fail:
"An acquisition to enhance franchise value that doesn't enhance shareholder value is simply a lie. If you look at some of the big asset aggregators...you find a highway littered with the shares of bad deals. It is like driving through a junk yard."
- Joseph Stieven, chief executive of Stieven Capital Advisors in St. Louis, which holds stakes in more than 60 banks
Related Article:
On news that last January's foreclosure settlement will result in just $300 in compensation for the majority of borrowers:
"It's a dismal part of history when it comes to mortgage finance."
- John Taylor, the head of the National Community Reinvestment Coalition
Related Article:
(Image:
On the independent foreclosure review process that was halted in January:
"If we had it to do over again we would take a different approach."
- Daniel Stipano, deputy chief counsel at the Office of the Comptroller of the Currency
Related Article:
(Image:
On why Wintrust Financial Corp (WTFC) doesn't bid on troubled banks unless it has a loss-share agreement in place with the FDIC:
"It's hard to believe that you can do two days of on-site, watered-down due diligence and get comfortable enough with the financial condition of the bank to go without a loss share."
- Edward Wehmer, president and chief executive officer of Wintrust
Related Article:
On a minority out-of-state shareholder who is trying to take control of the board at South Street Financial in Albemarle, N.C.:
"I have received numerous calls from people outraged that a man from Pennsylvania is trying to come down here to cause trouble."
- R. Ronald Swanner, Chairman, President and Chief Executive of South Street Financial
Related Article:
(Image:
On why raising capital adequacy levels may not make banks more resilient:
"Don't you feel better with 20% capital? But are you safer? Have you allocated anything better?"
- Thomas Hoenig, vice chairman of the Federal Deposit Insurance Corp.
Related Article:
(Image: Bloomberg News)
On the OCC's efforts to regulate bank consultants:
"To me, the whole thing [criticism] about the consultants is just more scapegoating."
- Walter Moeling 4th, a partner at the law firm Bryan Cave
Related Article:
(Image:
On the risk that hackers could launch cyberattacks by remotely hijacking mobile devices, which rarely include anti-virus software:
"It's a horrible scenario. Imagine what happens if a million mobile devices all over the U.S. target one location?"
- Alphonse Pascual, senior analyst of security, risk and fraud at Javelin Strategy & Research
Related Article:
(Image:
