'If It Grows Like a Weed, It's a Weed': Week's Best Quotes
October 16, 2013 11:09 AM
The most notable quotes from American Banker stories of the previous week. Readers are encouraged to add their own observations in the Comments fields at the bottom of each slide.
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On the recent growthand increasing underwriting problemsin highly leveraged loans:
"There is a banking adage that if it's growing like a weed, it's a good chance that it's a weed."
Mark Zandi, chief economist of Moody's Analytics
Related Article:
(Image: Bloomberg News)
On whether JPMorgan Chase's (JPM) plan to cut business lines and add compliance staff could reduce future earnings:
"Let's just focus on
the other things we're doing pretty well."
Jamie Dimon, JPMorgan chairman and chief executive
Related Article:
(Image: Bloomberg News)
On $57 billion in troubled mortgages that banks say are fully FHA-insured but may ultimately be disputed:
"It's like saying you'll be reimbursed for expenses when you've lost the receipts."
Reuben Guttman, a director at Grant & Eisenhofer
Related Article:
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Thomas O'Neill, founder of Kimberlite Advisors and Sandler O'Neill & Partners, on why he recently founded a bank advisory group in a tepid M&A market:
"There are 6,900 banks out there, and I don't believe there is any one firm that can handle all of them."
Related Article:
(Image: Bloomberg News)
On whether Republic Bancorp's (RBCAA) 2011 consent order may have made it harder to close its deal for H&R Block Bank:
"They could still have a shadow of their scarlet letter hanging over them."
Lawrence Kaplan, a partner at Paul Hastings
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On why the urgency to unwind Fannie Mae and Freddie Mac may be fading:
"Over the last few years, Fannie and Freddie have been considered toxic, but the more money they make, the less toxic they become."
Dan Hyman, an executive vice president of portfolio management at bond investor Pimco
Related Article:
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On whether smaller banks can compete in wealth management:
"It's a jump ball. I don't think that just because somebody's bigger they're necessarily going to have an advantage."
Bruce Van Saun, CEO of RBS Citizens Group
Related Article:
(Image: Bloomberg News)
On smaller lenders that have recently entered the wealth management field:
"I think there're a lot of small banks, and even regional banks, that jump into this business and probably shouldn't."
Dick Evans, CEO of Cullen/Frost Bankers (CFR)
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On the potential fallout from a U.S. government default:
"It would be a horrible, horrible event.
We've never, as a country, not honored our obligations. Nobody has any idea what's going to happen."
Timothy Sloan, Wells Fargo CFO
Related Article:
(Image: Bloomberg News)
On banks that are expanding into distant markets in an echo of a strategy that hurt many lenders during the housing bust:
"We're surprised at how quickly bankers have forgotten the last credit crisis."
Stephen Marsh, chairman and CEO of Enterprise Financial Services' (EFSC) bank
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Tom Brouster, chairman of Reliance Bancshares (RLBS) in St. Louis, on his company's renewed interest in southwestern Florida:
"Things have changed around quite a bit in Florida."
Related Article:
On how bankers' conservatism has helped a few large core-banking software vendors dominate the market:
"In a herd-like industry where bankers follow the leader, the little guys are in tough shape."
Art Gillis, a banking-technology consultant
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