Banks shuffle and threaten they will lose top producers

One Seattle Short Sale specialist opinion, everybody has one.

This is the first of a series of blogs which deal with the duplicity and greed of many of America’s largest banks and brokerage houses.  I have followed the finance industry as a mortgage banker and Seattle to Tacoma and Bellevue WA real estate agent for over 30 years.  As a Seattle short sale specialist I have a unique understanding of the way that banks work, how to negotiate short sales with them and how to help families facing foreclosure, helping homeowners avoid foreclosure and limit the damage to their credit.

These blogs, in particular, are to help develop a mindset.  BTW… not a wacko here, just like to think how about you?

It just keeps going on, much like peeling open an artichoke in order to get to the heart of the matter.  At least in an artichoke you know that there is a heart.  In our banking industry it appears there is also a heart at the center, a cold stone heart.

Banks and brokerage firms bonuses loom big in the sights of the governments efforts to ameliorate the public ire at the situation that we all find ourselves in.

Recently I heard that the Europeans were considering taxing the banks to the tune of 50% of the bonuses that the banks pay themselves.  Like in the U.S., there is the threat that the banks would leave a jurisdiction which would attempt to restrict their compensation in any way.  You hear it all the time “Banks fear an exodus of talent if compensation levels are interfered with”.  I have always wondered “Where else would they go in order to earn such bonuses?”

Here is an interesting thought on the above.  Where could the banks go the top executives?  The banks could take their business to foreign countries, as many other American companies have done over the years, where they could continue to operate with minimum oversight and maximum greed.  How would that affect us who remain behind?

The actual reason that banks will continue operating in the U.S. will be for their own self interest.  They could move lock, stock and barrel to some safe haven, but who would be there to bail them out when their irrational exuberance brings on the next big bubble to threaten their existence?  Who would give them the billions needed for their survival then?  It would be shear insanity for the banks to hightail it out of Dodge.

I guess that we are stuck with them.  By the way there is a very interesting book out there titled “The Creature from Jeakyl Island” which deals with the formation of the Federal Reserve (video here).  The book is a real tome and requires a bit of perseverance, but it does makes you think.

Contact us today for a free Short Sale consultation.