Posted by John Ester on Aug 29, 2017
Longtime banker Don Jeffery said that Michigan's banks are in great shape today despite the many challenges they face.
There are 94 banks in Michigan today, as compared to 782 in 1921.  Don reviewed the major financial events since then, including the stock market crash of 1929 and the bank closings in 1933 that led to the formation of the FDIC in 1934.  Under that scheme depositors are told that their funds are "insured by the federal government," but in fact the banks fund the insurance.
Among the challenges faced by banks are the low interest rates set by the Federal Reserve System and the cumbersome requirements of the Dodd-Frank Act, although the latter have been relaxed by the Trump administration.  Don told several "horror stories" of banks unreasonably required by the FDIC to write off loans.
He concluded by saying that life is made up of the Past, Present and Future.  The Past is history and the Future is a mystery, but the Present is a gift--a "present" in more ways than one.