I bet you didn't know . . .
By Timothy S. Avery, President & CEO - Scott Valley Bank
I can still remember vividly the fall of 2008, when the financial “meltdown” was occurring in our country and around the world. Professionals throughout the financial services industry were wondering if "Financial Armageddon" was upon us and it seemed everyone had a strong opinion about the steps taken by our government to provide support at every corner.
Being in the banking industry, I was keenly aware that the public perception was largely negative toward anything that closely resembled a bank and indeed, through the myriad of maneuvers navigated by our government, many non-bank-banks were invited to join in the available pool of rescue funds (TARP) that would almost immediately become known as the “Big Bailout”. We’re proud to have not participated in the TARP funding pool. Didn’t need it, didn’t want it.
In the months that followed, many bankers, me included, were asked to speak in many different forums about the happenings of that period. The one thing that I repeatedly stated each time I offered a review of the actions taken by our government was: “Regardless of your feelings of the correctness of the bailout, history will ultimately show that it was a necessary set of steps to prevent the collapse of our financial systems globally.”
The other perception was, and perhaps still is, that the burden of the bailout will be placed upon the taxpayer for generations to come. While the economic impact that came as a result of the bursting of the housing bubble that was our false economy, there is a different perspective you should hear regarding the “Big Bailout”.
I present to you a recent editorial by Washington Post columnist Allan Sloan that provides an insight into the "Big Bailout" that the public seems to have rejected or, more likely lost sight of, as the post-recession economy continues to struggle . . . an insight that we in the financial services industry are keenly aware of.