The Banking Crisis Of The Rich

bizjournals  |  UMB Financial Corp. CEO Mariner Kemper said the reason the Mid-Size Bank Coalition of America asked the FDIC to insure all bank deposits for the next two years was to immediately restore confidence in the entire banking system, not just “too big to fail” banks. 

“That’s the request from midsized banks, so that there is no reason for people to see a perceived risk and move their money to somewhere where there is less perceived risk right now,” he said. “I think that ultimately has been the goal of the government, if you go back to the 2008 crisis, to not have a too-big-to-fail outcome.”

Kemper said a temporary unconditional guarantee from the FDIC would create calm and buy time for everyone to talk about what longer-term changes might be necessary.

“Facts and cooler heads need to prevail here,” he said. “We don’t have a fundamental crisis in the banking industry right now. There is no monster under the bed. You can be afraid of your shadow, but it’s still a shadow.”

UMB has a 65% loan-to-deposit ratio, which means the bank has plenty of money for customers if a crisis emerges, Kemper said. UMB knows its clients, and those clients know the bank. Kemper said he has made innumerable calls to clients to answer any questions they may have.

“Half of them are saying thanks for calling, but you didn’t need to,” Kemper said. “The other half are saying thanks for calling, I feel better. Some are telling me they bought stock or put more money into the bank as a show of support. That’s what our community is doing. So I guess what I’d say is it’s not a crisis, so don’t make it one. As the British say, stay calm, and carry on. If everyone just takes a beat and focuses on running their business and paying their bills, getting in their car and going where they need to go just for a few days and takes a deep breath, this thing will all be in the rearview mirror.”