The trick to downsizing banks is to increase availability to personal and small business interests without losing asset and liquidity in the market.
Increasing the number of autonomous small banks with credit lines to large banks will increase the capital to small businesses and increase employment.
Putting a large fine in the USA Treasury will serve a noble purpose, but, it will also remove asset value and liquidity out of the market. A market hard pressed to create jobs.
Healthier housing market sparks bank layoffs by the thousands: report (click here)
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August 26, 2013 at 6:00 AM, updated August 26, 2013 at 6:06 AM
Who’s hurt by a strengthening housing market?
Bank employees, that’s who.
Large lenders around the country are starting to shed workers by the thousands now that fewer homeowners are tardy on their mortgages and interest rates are starting to rise, the L.A. Times has reported.
Wells Fargo, the largest U.S. mortgage lender, last week said it would eliminate the jobs of 2,300 workers who processed refinance applications, or 3 percent of its 70,000-person consumer lending group, the newspaper said.
Likewise, JPMorgan Chase said this month it would eliminate 3,000 mortgage jobs, all a part of previously announced plan to cut the lending unit by a total of 15,000 jobs by the end of next year.
And in July, Bank of America said it had reduced headcount at its Legacy Asset Servicing division by of 20,000 over the past year. This division was set up to handle troubled mortgages the bank inherited from Countrywide Financial during the 2008 takeover, the Times noted....
Let's say JP Morgan instead of paying a fine was to take $11 billion in assets and liquidity to establish a free standing bank to service 'the little people' while having a guaranteed line of credit for it's growth. Now, $11 billion is not a huge bank, but, it is not exactly a small one if it is located in the USA where such an institutions is needed the most AND where it will also grow to establish other lending sites. There is no reason to put a bank on the back forty only to have it fail. It should go perhaps to Wichita where small family farmers can grow the bank into more locations.
If such a bank was established with government fines it would maintain the assets and liquidity in the market while serving a vital service to assist the nation to grow. Such a bank would not be directly competitive with JP Morgan, but, in time there is a real possibility it would grow and other larger banks would be finding they can downsize without doing any economy damage.
Basically, these employees now unemployed or underemployed would have a new job market with re-establishing smaller banks. We lost a lot of small banks in the USA when 2008 occurred. In downsizing the larger banks by establishing free standing banks with lines of credit will maintain the integrity of the market while shifting focus to local economies.
Increasing the number of autonomous small banks with credit lines to large banks will increase the capital to small businesses and increase employment.
Putting a large fine in the USA Treasury will serve a noble purpose, but, it will also remove asset value and liquidity out of the market. A market hard pressed to create jobs.
Healthier housing market sparks bank layoffs by the thousands: report (click here)
By
August 26, 2013 at 6:00 AM, updated August 26, 2013 at 6:06 AM
Who’s hurt by a strengthening housing market?
Bank employees, that’s who.
Large lenders around the country are starting to shed workers by the thousands now that fewer homeowners are tardy on their mortgages and interest rates are starting to rise, the L.A. Times has reported.
Wells Fargo, the largest U.S. mortgage lender, last week said it would eliminate the jobs of 2,300 workers who processed refinance applications, or 3 percent of its 70,000-person consumer lending group, the newspaper said.
Likewise, JPMorgan Chase said this month it would eliminate 3,000 mortgage jobs, all a part of previously announced plan to cut the lending unit by a total of 15,000 jobs by the end of next year.
And in July, Bank of America said it had reduced headcount at its Legacy Asset Servicing division by of 20,000 over the past year. This division was set up to handle troubled mortgages the bank inherited from Countrywide Financial during the 2008 takeover, the Times noted....
Let's say JP Morgan instead of paying a fine was to take $11 billion in assets and liquidity to establish a free standing bank to service 'the little people' while having a guaranteed line of credit for it's growth. Now, $11 billion is not a huge bank, but, it is not exactly a small one if it is located in the USA where such an institutions is needed the most AND where it will also grow to establish other lending sites. There is no reason to put a bank on the back forty only to have it fail. It should go perhaps to Wichita where small family farmers can grow the bank into more locations.
If such a bank was established with government fines it would maintain the assets and liquidity in the market while serving a vital service to assist the nation to grow. Such a bank would not be directly competitive with JP Morgan, but, in time there is a real possibility it would grow and other larger banks would be finding they can downsize without doing any economy damage.
Basically, these employees now unemployed or underemployed would have a new job market with re-establishing smaller banks. We lost a lot of small banks in the USA when 2008 occurred. In downsizing the larger banks by establishing free standing banks with lines of credit will maintain the integrity of the market while shifting focus to local economies.
