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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

percent in 2004, a decline of 1.1 By comparison, non-high-tech industries lost 689,000 jobs between 2001 and 2002 but recovered the lost jobs by 2004. And quite frankly, I did not know there were so many tranches to mortgage-backed securities. Most of the more than 500 financial institutions that failed were community banks.

FDIC 78
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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

trillion in Agency mortgage backed securities. Physical security costs ramped up over the past 15 years; just ask the airlines and Homeland Security. Dorothy has been with Penn Community Bank and its predecessor since November, 2004. Remember all of the quantitative easing, or “QE,” purchase programs?

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Guest Post: Financial Markets and Economic Commentary by Dorothy Jaworski

Jeff For Banks

Readers note: You can also view this post on Penn Community Bank's website. They also implemented large, aggressive borrowing and purchase programs for Treasuries, Agency mortgage backed securities, corporate bonds, municipal bonds, loans, commercial paper, bank lending, and small business loan programs. Click here.

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Guest Post: Financial Markets and Economic Update by Dorothy Jaworski

Jeff For Banks

They have seemed fairly nervous about their large balance sheet, so in September, 2017, they announced that they would allow bonds to mature or pay off in October- by $4 billion in Agency mortgage backed securities and $6 billion in Treasuries, for a total of $10 billion. But they won’t stop there.