For more information, contact Kurt Bauer
608/441-1203, bauer@wisbank.com
Or Daryll Lund
608/833-4229, Daryll@communitybankers.org
Joint Statement from
Wisconsin Bankers Association President/CEO Kurt Bauer and
Community Bankers of Wisconsin President/CEO Daryll Lund
The entire Wisconsin banking community is pleased that the banking regulatory system worked as designed last Friday when the Department of Financial Institutions closed Bank of Elmwood, Racine. Importantly, depositors were protected as there was a seamless transition to Tri City National Bank of Oak Creek. Wisconsin’s banking community expresses its support to the affected employees, directors and shareholders of the Bank of Elmwood.
Until last Friday, only 16 states, including Wisconsin, hadn’t experience a bank closure since January 1, 2008, which tells us two things: The conservative lending culture of Wisconsin banks has served our state and industry well; but also that economic conditions across Wisconsin are weak and because of that fact, banks will continue to face challenging times.
Banks didn’t cause this recession as so many believe. We also were not bailed out as so many claim. We didn’t make irresponsible subprime loans to people who didn’t have the capacity to repay them. We didn’t speculate in investment instruments we didn’t understand, like credit default swaps and other derivatives. And we are doing our best to meet the demand for loans to qualified borrowers.
We understand our vital role as the foundation of economic development and job growth in every corner of Wisconsin and our nation. We want to make prudent loans to businesses in the communities we serve because if those businesses don’t succeed, neither will we.
We know that many people are angry and looking for someone to blame. But targeting that anger at banks is misplaced and counterproductive toward achieving an economic recovery.
Specifically, too many elected officials are leveraging the public’s confusion over who caused this crisis to attack banks and push legislative agendas that will make a bad situation worse for our industry and, ultimately for the businesses and consumers we serve.
There is already a lengthy list of obstacles beyond our control impeding our ability to do what we do best; make loans to qualified businesses and consumers. Lawmakers need to consider the consequences of adding more burdens and costs on the very institutions they need to help rebuild our nation’s economy.
Whether we are local, regional or national banks, we rise and fall together. WBA and CBW pledge to redouble our collective efforts against legislation and other regulatory proposals that are only counterproductive to the banking industry’s ability to help with an economic recovery.
###
The Wisconsin Bankers Association is the state’s largest financial industry trade association, representing 300 commercial banks and savings institutions, their nearly 2,300 branch offices and 30,000 employees.
Community Bankers of Wisconsin (CBW) was founded in 1981 and is dedicated exclusively to promoting the Wisconsin community banking industry. CBW represents a majority of Wisconsin community banks with offices located in small towns, rural areas, suburbs, and cities. CBW members employ approximately 9,500 individuals and have collective assets of almost $40 billion.
