"Ladies And Gentlemen: This Is A Bank" - The Fed Provides A Critical Resource To Clueless Bank Directors... Or Has A Very Twisted Sense Of Humor
Tracy Alloway at FT Alphaville has caught what has got to be a glitch in the Bernanke matrix. The Federal Reserve, in what one can assume is likely a very critical resource for bank directors, says that while newly appointed Bank Directors may have such mission critical skills as "basic management experience and skills, an inquisitive attitude, and a willingness to commit time and energy to bank matters" they likely miss "a basic knowledge of banking and what to consider in overseeing a bank." Well thank goodness the Fed is there with this critical 5-minute guide in providing bank directors with all the information they need on how to to run a bank. And they wonder why some are skeptical about the soundness of the bank system.
As Tracy highlights, the key point for those charged with the critical task of ensuring the stability of the financial system:
“Many people who are asked to serve on bank boards have little training or experience to prepare them for their new roles,”
said Patrick M. Parkinson, director of the Federal Reserve Board’s
Division of Banking Supervision and Regulation. “This website has been
developed with new directors in mind, but there is plenty of useful
information for those who have already spent time on bank boards.”
While a director’s job is important and carries responsibility, it may not be as daunting as it first appears.
In fact, you can effectively use your knowledge and experience gained
from your own profession in your role as a director. It is likely you
already possess many of the attributes of an effective director
- basic management experience and skills,
- an inquisitive attitude, and
- a willingness to commit time and energy to bank matters.
The only thing that may be missing is a basic knowledge of banking and what to consider in overseeing a bank.
The discussion that follows focuses on the basics of being a director.
The legendary Green Bay Packers football coach, Vince Lombardi,
recognized the importance of teaching basics to his players. Even after
winning championships and being surrounded by future Hall-of-Fame
players, Lombardi had a tradition of beginning every preseason training
camp the same way. He stood before his players, football in hand, and
said, “Gentlemen, this is a football.” He assumed his players were a
blank slate at the beginning of each season. With that in mind, we begin with the basic discussion, “Ladies and gentlemen, this is a bank.”
What the hell is going on?