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The Velocity of Risk – What Bankers Need To Know

South State Correspondent

Banks that are looking to enhance their risk management practices should consider incorporating the concept of the velocity of risk into their enterprise-wide risk management practices. Some risks occur slowly; others strike quickly and hard. Optimizing Risk. Consider the risk above.

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Predicting the Next Banking Crisis Is a Fool’s Game. Not Learning From the Last One: Equally Foolish

Jeff For Banks

When the Taxpayer Relief Act of 1997 passed, the top capital gains tax rate was lowered, providing yet another incentive for equity speculators to pour money into the fledgling internet industry. Although community banks did not lend to sub-prime borrowers in any meaningful way, did we participate?

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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

Economic growth picked up strongly in the second quarter, with a reading of +4.2%, as momentum from the tax cuts and deregulation pushed spending and investment higher. Fiscal stimulus in the form of tax cuts, especially for corporations, led to spikes in investment and spending. Student debt has more than doubled from 2008 to $1.5

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Guest Post: Financial Markets and Economic Update - First Quarter 2024

Jeff For Banks

Trillions of dollars of subsidies on “green” BS projects, electric vehicles no one wants, tax credits, debt forgiveness, and free money all fuel demand and contribute to inflation. It sounds like 2007 all over again, when people got tired of looking at LEI and then in 2008, all hell broke loose. Real GDP was +3.2% in 4Q23, of which.73%

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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

trillion in 2008. million at the end of December, 2007, before the crisis hit in 2008. million in December, 2008 and the peak occurred in October, 2009 at 21.4 Dorothy has been with Penn Community Bank and its predecessor since November, 2004. Rising debt levels will not stop them. For what reason?

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Guest Post: Financial Markets & Economics Update by banker Dorothy Jaworski

Jeff For Banks

The markets believe the chance of tax hikes, repeals of tax cuts, and gigantic initiatives are greatly diminished. Remember, it took the Fed seven years to raise rates from the zero bound after the Great Recession of 2008. Dorothy has been with Penn Community Bank and its predecessor since November, 2004.

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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

Back in 2008, the LHC started up with a bang and led to all kinds of new physics particle knowledge. A tightening campaign that started in December, 2015 and has totaled 2.25% has basically offset the boost from tax cuts and the tightening also succeeded in flattening the yield curve.