The Real Golden Parachute on Wall St? The Truth
May 10, 2010
Leaving the comfort of the banking world in 1998, I self-assuredly started my own company with a new idea, unbounding drive, great inspiration, and fearlessness centered within intuition. The contacts, clients, and systems were in place to begin this exciting venture–and but for the occasional anxiety pang–business as a lender became my passion. I loved helping honest people realize their dreams….this feeling had always satisfied me!
We treated my friends and family–our first clients, and then the thousands over a 12 year period with the greatest respect, loyalty and honesty, and expected and received the same from them…the marriage was made in heaven!
When giant storm clouds formed over the lending horizon in late ’07, I had the foresight to recognize that only the strong AND honest SHOULD survive and battened down the hatches like every other professional in my business to ride out the storm. Who knew such a maelstrom would ensue–surrounding subprime lending….an arena whose model was clearly flawed, suspect and one that really seemed ready to crash and burn. Our clients interests’ were straight 30 Year and 40 Year Fixed only and we stayed away (far away) from the “Alt-A” whose credit criterion would comically be referred to as ‘No Doc’. That is, the “so-easy-to-qualify, that-all-’they’-have-to-do-is-be-able-to-breathe-and-’fog-a-mirror’ loans” which they would come to be known as within the shadows of our industry. A 2 Year balloon mortgage?! Come on…
As We Awaken…
What’s most troubling as the storm begins to pass…is the new world order that’s been left behind in lending. The very charlatans who enthusiastically embraced and recommended the subprime lending patterns, products and mentality are still making enormous profits and are charged with cleaning up what’s left within our beloved community. Really?…(see the 90 second video entitled, “Michael Lewis Describes Arrogance & Delusion on Wall Street” and my commentary located in the upper right hand margin under, “And Your Feeling…?”)
I started my loan officer’s career at Home Savings of America in 1991 the largest thrift, which at the time was a well respected, 100 year old west coast bank with $51B in assets. HSA bought Great Western and then morphed into what would later become Washington Mutual. What’s become of this once proud, rock solid nationwide bank? Gone…Done…Finished…in ’08…and the former CEO testified just last week about the failure to fully ‘see’ the risk of their subprime arm unit. Funny….the senior risk officer sitting at those same hearings last week complained that his whistle was never heard. What is now the largest bank failure in U.S. history, Washington Mutual has now become what some experts believe as the new Enron.
Where Are We Going?
The solution? The solution is centered in principles of truth. Simple. A return to: Honesty, Integrity, & Intuition among the profession. With these three and the drive to move forward, pragmatic solutions…like conceptually returning to solid lending while freeing up the log jam in credit restrictions (but NOT again at the expense of sound lending fundamentals…like: ability to repay the debt, willingness to repay, and collateral) will enable clear thinking to again take root and lead us forward–leading us to a new promised land…one where we can all rest our heads easily on the pillow each night and enjoy both our individual and collective contributions to the American Dream once again.
Bruce Attridge
(Bruce Attridge has been in lending for over 20 years and currently owns and operates www.40yearmortgages.com offering clients stable loan program options for the absolute-lowest home loan payents each and every month.) He can be reached at: Bruce@40YearMortgages.com
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great job Bruce. It’s the foxes guarding the henhouses all over again.
I look forward to The Captain’s wisdom on a regular basis!
Jeff, You’re spot on! Appreciate your comments.
I wonder if Wall Street has just become Enron institutionalized. I mean, what do they really add anymore? They used to provide a means for buyers and seller of capital to get together, often sharing in some of the business risks. Now they just take a cut of every transaction, regardless of who or what it is about, and accept bet on it all on the side. Can’t the necessary part be done by computer at a fraction of the cost?
Looks awesome Bruce. Please add me to your list to receive your newsletters. Looking forward to it. Thanks!
Nice job.
Unfortunately, the legacy of all of this greed will be paid for by the children and grandchildren of this country.
Yet, another case, of pass the buck (pun, very much, intended).
You’re right, JW. Wait until Goldman testifies tomorrow…
Honesty, Integrity and Intuition speakes volumes. Keep it simple and true. Good job Bruce.
Great addition to your site, Bruce. Good to hear the perspective of someone in the industry. Looking forward to more of it.