Aloha and Mahalo
By Stephen M. Klein
September 8, 2011
Flying High
As I return from a brief vacation from guess where, I am reflecting back on the past year, the present and the future. While things are far from rosy in our economy, at least some positive things are happening.
Play the Hand You’re Dealt
As former Seahawks Coach Chuck Knox (a/k/a Ground Chuck) used to say, “You’ve gotta play the hand you are dealt.” We are on the verge of announcing one whole bank deal (yes they are rare in the Northwest, but possible) and closing another significant capital raise. So forgive my upbeat mood and cautious optimism. Both of these transactions have taken time and reflect the parties’ willingness to play the cards they were dealt.
What’s Up Now?
Clearly there are many challenges for banks in the next few years, with making money not the least of them. Fears of a “double dip” recession have surfaced. Hopefully this doesn’t become a self-fulfilling prophecy, for confidence is at the root of our economic recovery. With these uncertainties and a depressed bank stock market, it pretty much looks like most deals will have to wait until next year. This is unfortunate, since we sense that there are plenty of willing buyers and sellers, but for reasonable terms.
Where Art Thou Regulators?
Honestly, it’s been a mixed bag. We have seen a significant shift in the level of cooperation by the regulators. However, whenever Washington, D.C. gets involved, all bets (and time frames) are off. As I have quoted one of my old D.C. buddies in the past, “Washington D.C. is an island surrounded by reality.” This has never been truer than now. It really can be frustrating for our clients and the regional offices of the regulators as well. While I respect that they have a tough job to do, we all must be held accountable. It is time!
Aloha and Mahalo
I would like to take this opportunity to thank our many loyal and terrific clients. Your patience and support in dealing with the regulators and the many challenges you face is indeed appreciated and admired. I am inspired by the will and strength of our clients. That is what truly drives me and nourishes me. MAHALO!!!
