Our concern is what happens to the banks—the unintended consequences. What matters to Bauer is that our community banks can continue to supply credit where it’s needed and that the credit extended continues to be done so prudently.
It Can Take a Long Time to Make a Quick Buck
Mutual conversions were once a way to make an easy buck. In the ’80s and ’90s it was common for depositors to open accounts at any mutual that would allow them. Then they’d sit back and hope the mutual would decide it was time to convert.
Depositors on record would get first crack at any stock offering and there was good money to be made. And it was easy money. But those conversions fizzled out after the turn of the century. Last year we reported that they were beginning to heat up again (JRN 34:12 & 32). But they’re different now.
New Hope for Distressed Communities
If the Community Reinvestment Act (CRA) were a person, we may be inclined to agree with Congressman Week’s assessment that CRA is experiencing a midlife crisis… but it’s not. It’s old and outdated and needs to be rejuvenated.