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March 2008 Newsletter

 

Mistaken Identity

By Mark Francis, President & CEOMark

Headlines can be misleading, and in a time of financial crisis, that can make matters worse.

Pick up a paper, or listen to the quick bursts of news on TV or radio, and what you get are reports of a subprime crisis, a "banking" crisis and market turmoil.

Bear Stearns was not a commercial bank. It was not an insured depository institution. It was an investment "bank.”  The word bank is also applied to mortgage firms. Their function, their purpose and their regulation differ from federally insured depository institutions.

Let's set the record straight: There is no banking crisis. The banking industry – traditional federally insured, federally regulated depository institutions –– is safe and sound.

Click Here to read more!

 

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