03/30/2010
Government-backed
Government-backed. How do you pitch your loan service and product versus a product that is backed by the government?
A piece from Seeking Alpha comments on how bank lending slowly creeps over toward what could be perceived as a complete dependence on a government guarantee.
Many brokers are already position themselves as experts in these government-sponsored programs.
Private money continues to lend, though much more limitedly, to their specific niches. If the favor for government-backed loans continues, what position can private money take up? What happens to the “private” part?
03/25/2010
Welcome, Tom!
As we head toward the end of March, we bolster our CAnet ranks by one additional Affiliate-level member.
Tom Gilleese of The Francis Group joins our CAnet with hopes to generate some success in the Commercial Real Estate arena within the Northwest.
(Kipp Cosgriffe, Tom Gilleese, and Brad Schafer at our reception for Tom)
Welcome, Tom! We all look forward to working with you!
03/23/2010
Private Money Among Small Banking Reform
As the senate pushes to remove regulation from small banks, we cannot help but wonder what types of consequences this would cause. Yes, if the Senate gets its way, banking oversight resources would greatly increase, allowing more regulation of bigger banks. This leaves smaller banks with far fewer regulations for practices and lending.
With a less regulated small bank market, how does this affect the quality of loan products accessible by borrowers in the wake of the recent recession?
Jeannine Aversa’s article “Bernanke: Keep Fed As Watchdog of Small US Banks” touches on the recent struggle between those who are for deregulation and those against it, claiming that regulation of small US banks is something we can draw information from to prevent the next credit crisis.
The article poignantly ends with, “The most difficult task we face is to achieve appropriate balance between prudence, which is important, and making good loans,” by Federal Reserve Chairman, Ben Bernanke. It is interesting to notice how this dichotomy trickles down from top to bottom across all financial institutions within the US.
Even private money, though much more flexible, can feel the constraints of the consequences of this last recession and the turmoil of parties lobbying and struggling to get credit moving smoothly once more. As the fate of small bank regulation unfolds, so might the repositioning of the private money firm.
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