October 19 Speaker - Ed Lette
Our speaker on October 19 was Ed Lette of Business Bank of Texas, who gave us an update on banking.
In his opinion, government regulations have stymied progress. Many banks have gotten out of mortgage lending because of compliance with regulations. Under the regulations, a bank is guilty until proven innocent on compliance issues. He believes that Wall Street has too much financial influence in politics. Because of the regulations, it is hard for banks to be all things to all people. For example, Business Bank of Texas only does commercial and industrial loans. When it comes to interest rates, the IMF and World Bank have asked Fed not to raise rates because the World economy is not doing well. Governments have over indebted themselves and don't want to see rates go up. Treasury rates have been flat for years and Ed Lette doesn't see rates going up in the near future.
In his opinion, government regulations have stymied progress. Many banks have gotten out of mortgage lending because of compliance with regulations. Under the regulations, a bank is guilty until proven innocent on compliance issues. He believes that Wall Street has too much financial influence in politics. Because of the regulations, it is hard for banks to be all things to all people. For example, Business Bank of Texas only does commercial and industrial loans. When it comes to interest rates, the IMF and World Bank have asked Fed not to raise rates because the World economy is not doing well. Governments have over indebted themselves and don't want to see rates go up. Treasury rates have been flat for years and Ed Lette doesn't see rates going up in the near future.