Banks always had an unusual way of doing things.  Especially growth under the control of Glass-Stegall.  The GlassSteagall Act was a 1933 law that separated investment banking from retail banking. Investment banks organized the initial sales of stocks, called an initial public offering. They facilitated mergers and acquisitions. Many of them operated their own hedge funds.

So, in the past certain banks in the retail arena required employees of a certain level to become a greater part of their neighborhood and had them join Not-for-Profit boards; to grow the employees and potentially the banks business as well.

This was a nice subversive way to grow the business and tie into the neighborhood community as well.  It helped all parties grow.

But with the repeal of Glass-Stegall, the world of banking has changed from building and maintaining relationships to pure sales.  I have talked to bankers who I had worked with for years who left banking because of the quotas that they needed to hit monthly, i.e. credit card processing, credit cards, small loans, etc.

Businesses need to have a relationship with their bankers for good times and more so in bad times.  But banks no longer seemingly want those relationships they are in the commodity business now.

I have had to threaten my bankers to get them to do what I need them to do, this is not a healthy relationship.  Which is why I am looking at other banks.

I miss the days under Glass-Stegall, you knew where you stood with your bank.

 

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