No Predictions, Just Hard Work

When I took office during the ABA convention in Boston this fall, I said in my acceptance remarks that I wouldn't be making any predictions about the year ahead. That's because I have very little faith in those who make predictions, and still less in ones made by me. I also said it would be more useful to talk about what I intend to work on during the next 12 months. That is also what I'd like to talk about here. Banking's image The first thing is the industry's ad campaign, Nothing works like money in the As important as the key issues are that we face today, there is nothing more important than our campaign to improve banking's reputation. The problem is real. It is severe. And it is going to get worse before it gets better. We are being attacked directly in the media, by credit unions, and by life insurance interests, not to mention consumer groups and even some members of Congress, on ATM fees, for example. But thanks to Walter Dods, last year's ABA president, the ABA Communications Council, and lots of others who have worked long and hard in our behalf, we have the tools to change things. An ABA survey in The Insider found that of nearly 400 banks responding, 92% said they'd be willing to contribute to the ABA campaign. It's going to cost money. But it's not so much money if we each carry our share. The cost is estimated at $5 per $1 million of deposits, for most banks a relatively small part of our advertising budget. And it will be some of the best money you ever spend-for your industry and for your own bank. Financial modernization Next we must, of course, aggressively pursue financial modernization. The bill being considered (H.R. 10) is one that we don't much care for. Our position now is analogous to Woody Hayes' description of the forward pass: Three things can happen -- two of them bad. If the bill goes through in its present form -- that's bad. But if the bill dies-that's also bad. We cannot live with the status quo because it leaves banks with a charter that is inferior to thrifts (which, incidentally, would be one of the great ironies of all time-after picking up a $12 billion piece of the cost of the S&L debacle, we end up with a charter that puts us at a disadvantage). Further, without legislation, the unitary thrift holding company option remains. That would allow industrial and commercial companies to own banks and provide for the continued mixing of commerce and banking without restraint. …