For another, some observers remain convinced that thorough reform is the only way forward. It s better to start with a comprehensive, solid framework. Chessen also feels that, despite the recent spate of relatively poor results, the opportunity to fix the roof has not yet passed. I would say that sun is still shining, and shining pretty brightly, he contends. By any historical measure, last year was hugely successful.
Loss reserves are very conservative, the industry has record levels of capital.
I personally think the likelihood of bank failures this year is extremely small. Ironically, though, a change in the economic climate could be exactly what the reformers need to persuade the House Committee on Financial Services to act and quickly. Many people are loath to change a system that allows them to pay nothing. There may be no real impetus to change things unless the number of bank failures goes up, suggests an FDIC source. The only certainty is that Powell, preparing for his move to Washington, will face tough choices right from the start of his term.