Academic journal article ABA Banking Journal

TBTF Debate Ignores the Facts

Academic journal article ABA Banking Journal

TBTF Debate Ignores the Facts

Article excerpt

Every once in a while, an issue really hits at my core. I'm saddened by much of the rhetoric surrounding the too-big-to-fail (TBTF) debate. Much of it is fueled by emotion rather than deliberate examination of the facts. I'm sickened by what I believe to be the motivation behind some of the discussions.

Let me explain. I was privileged to be raised in a family committed to faith, family, and friends. This solid foundation taught me the purpose of establishing core values for your life's work.

My core values are to recognize the importance of people in your success; conduct yourself with a sense of responsibility; and strive to reach your potential.

The question for me, and I hope for you, is: How do your core values square with the current debate about TBTF?

As a banker, owning and operating a $120 million-assets ag bank, I'm thankful for what the large banks have contributed to our industry and our economy. The large banks are responsible for bringing new systems, new technology, and improved innovation to our industry. Large banks handle the financial needs of the giant U.S. companies doing business internationally and helping our economy grow. Clearly, community banks have benefited from the work of larger banks. Where would our industry, our country, and our highly diverse, $16 trillion economy be without large banks?

I don't understand anyone taking a political position that is intentionally designed to penalize one group based on the perception it will benefit others. Some bankers feel the large banks caused all the problems and community banks are paying the price. There's plenty of blame to go around. Legislators, regulators, consumers, and aggressive business models adopted by some banks and nonbanks contributed. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed


An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.