Jay Brew
A listing of the 73 articles by this author.
- How Would We Analyze Your Bank?
Issue 055 | June 2010
Every year, the analysts at m.rae resources analyze close to a thousand community banks. This is done for speeches we make, classes we teach, and one-on-one meetings with bank leadership teams. We believe that every community bank’s balance sheet and income statement sends specific messages on the uniqueness of the risk/return tradeoff at each community bank. The story is told through the following observations.- Story of a Failed Bank Part 2
Issue 055 | June 2010
Last month, we wrote about the sad story of Georgian Bank, which failed in September of 2009. The point of the story was to highlight that not only did the board and management team fail to recognize the significant risks the bank was taking until it was too late, but so did the regulators.- Market Letter: What is the Real Employment?
Issue 055 | June 2010
June’s unemployment release was a disappointment to the markets. The European mess and the fears of a double-dip recession led to high hopes for improvement in employment. The low private sector employment with the Census jobs making up a big segment of non-farm payrolls was not expected. On the bright side, the unemployment rate dropped. The Dow reacted by sliding below 10,000, and bonds rallied.- The Story of a Failed Bank
Issue 054 | May 2010
The number of bank failures continues to grow as evident in the failure of Georgian Bank. The Office of Inspector General is required to do an investigation of each failure, as it relates to the significant loss of government funds. This spurs an evaluation by the Office of Material Loss Reviews. These reports, released to the public, create additional and useful knowledge from a banker’s perspective. The reports have proved to be both alarming and of great consequence to how we view the future.- Capital Planning: Compliant or Strategic?
Issue 054 | May 2010
The financial crisis of 2008/2009 has focused community banking on capital. As regulators continue to pound on community banks to have a capital plan, institutions are still grappling with the new expectations and requirements. This is the perfect opportunity to go beyond compliance and create strategic thought and discussion.- Market Letter: Dr. Ed Questions the April GDP Release and Lays Blame for the Financial Crisis
Issue 054 | May 2010
The April release of first quarter GDP showed a healthy increase of 3.2%. Our chief economist, Dr. Ed Seifried, questioned the number in his quarterly Economic Survival Kit webcast. Over time, Dr. Ed says there is a strong correlation between GDP and the ISM manufacturing number, which grew to a very expansionary 60.4 reading. Based on the ISM release, Dr. Ed estimates that GDP should be reading over 5%.- How to Outrun the Grim Reaper
Issue 053 | April 2010
Overseeing a bank’s loan portfolio has always been a managed strategy. For many banks, the recent experience has called attention to this issue. The balance between risk and return within the portfolio should be established in a credit philosophy and credit culture, while closely monitoring exceptions and loan mix.- Market Letter: Are You a Believer?
Issue 053 | April 2010
When the employment numbers were released last Friday, the financial world seemed to stand still. With the news of the April release of nonfarm jobs jumping suddenly to 162,000, the media jumped right on it as well – giving it front-page coverage. Could the recession now be over? - Let’s Walk Away From Our Mortgage
Issue 052 | March 2010
There is a new trend in lending that is sweeping the nation. Is the value of your house less than you owe? Walk away! While this has occurred in isolated situations in previous economic cycles, it is happening now at an alarming rate. - Market Letter: Remember When 5% Unemployment Was Full Employment?
Issue 052 | March 2010
In the mid 80s, 5% unemployment was considered full employment. There was a certain level of unemployed people who were considered unemployable. It may be that we are heading back to those days.
