“We didn’t get into this economic crisis overnight. We won’t get out of it overnight.”
David Bochnowski pulls no punches when discussions turn to the local, state and national economic situations.
“Community banks, traditional bankers in communities across the country, did not engage in the practices that caused the meltdown of our financial system,” says the chairman and CEO of Northwest Indiana Bancorp and Peoples Bank. “That was caused by the practices of unregulated mortgage originators and mortgage brokers.”
The consequence of this upheaval is the deepest, longest-lasting recession in American history, he says.
“This is taking much longer, and we haven’t seen the rapid recovery of other recessions of the past, particularly those of the 1980s, when we emerged stronger,” Bochnowski says, adding that changes will come slowly if current circumstances are any indication.
During his recently-completed tenure as chairman of the government relations committee of the American Bankers Association, Bochnowski had a unique perspective on the recession and how the federal government is handling it.
Read the rest of this entry »