Pub. 1 2010 Issue 1

spring 2010 5 A M ESSAGE FROM THE P RESIDENT AND CEO By Joe L. Ellison A s I watch the current Administra- tion parade down banker blame street, I can’t help but think how I would like to see a press release, such as the following one, tell the real story. As you read this, however, keep in mind that this press release is com- pletely fabricated and only possible in my wildest dreams. Charleston West Virginia Bankers called for sweeping changes to jump- start the economy by increased lending to small business at their recent forum to Repair Economic Crisis Deepened by Bad Economic Policy. The forum was a collaboration of bankers across the state dedicated to designing actual resolu- tions to the current lending crisis. “It’s time for the President and Con- gress to give these small business owners the confidence they sorely need to expand their businesses, build up their inventories and put more people to work. Until the underlying causes for the recession are dealt with, including an over-reaction by bank regulators that is forcing many banks to cut bank lend- ing, we are not going to recover,” said the very smart guy who is not an elected official in Washington. Small businesses create more that 6 out of every 10 jobs each year. Traditional banks make two-thirds of all small business loans today. “This symbiotic relationship is stressed as never before by factors beyond their control. This Ad- ministration and Congress has done little but create uncertainty for small business owners, their community bank lenders and community members,” said another smart banker who is not a Presidential Czar or in any way related to the current policy makers in Washington. The bankers provided these suggestions for the President at the forum: • Stop the over-zealous regulatory exams and resulting orders placed on banks that artificially shrink lending. • Change the application of the accounting rules that wipe out real bank capital to account for theoretical losses; bankers need this capital to support new loans. • Stop the regulatory practice of devaluing real estate by forcing sales in the low point of the economic cycle. • Allow bankers time to work with struggling borrowers to prevent foreclosures, both commercial and residential. “These are simple fixes that the Ad- ministration and Congress can actually West Virginia Bankers Hold Forum to Repair Economic Crisis Deepened by Bad Economy Policy Small Business Loans Main Point of Contention implement to make a difference, but it takes discipline to roll up your sleeves, get to work and stop the bank bashing rhetoric. In times like these there is no room for political posturing, only time for tangible solutions. It’s going to take time, regulatory patience, and federal policies that support lending, not hamper it. The uncertainty swirling around the increased cost to businesses in the form of new taxes to pay for the stimulus plan, potentially higher costs to provide employees health insurance, and the exploding deficits has to be dealt with. The President and congres- sional leaders can play the blame game or they can take action. Let’s hope they choose the latter path,” said one of the smart bankers – probably you. The West Virginia Bankers Forum to Repair Economic Crisis Deepened by Bad Economic Policy is a completely fabricated event. Its false existence is meant to display the strife of respon- sible, traditional bankers who want to lend in their communities, but are being handcuffed by over-regulation and the lack of Washington’s support. The main goal of this imaginary forum is to suggest that, perhaps, a finer look should be taken at the currently proposed banking reform and regula- tion in an effort to actually aid banks in spurring economic growth. Q