To the editor:

The barrage of negative news and commentary about American banks prompts me, as a community banker, to comment. I trust that most people probably realize that the vast majority of community (local) banks and mid-sized (regional) banks are still sound and making loans in the communities they serve. Government officials, politicians and the news media continue doing a great disservice by reciting dramatic headlines about “banks” without making one important distinction: The financial crisis we now endure was caused or facilitated primarily by some huge investment banks and financial corporations.

These large financial institutions invested in risky loans and leveraged investments while the Securities and Exchange Commission (SEC), financial rating services and financial regulators failed in their oversight responsibilities. Local and regional banks that account for over 93 percent of all banking institutions in our country continue to provide sound loans and safe banking services.

Recovery and rescue programs are under way or being finalized. When added to the fundamental strength of our economy and people, as well as the support programs already in place that work to stabilize the economy, we can expect the economy to recover.

In the meantime, how are individuals and businesses to cope with this difficult situation? One way is to shop with local merchants and rely on hometown banks for sound credit services and safe, insured deposit accounts! In short, “buy local” and support those businesses and financial institutions that continue to follow sound business principles!

Ted Haggart, president,
Douglas County Bank,
Lawrence