Companies Reassess Their Banking Partners
Some of the banks that participated in the government bailout may now find a few of their own customers bailing. Respondents to a recent survey by research firm Greenwich Associates indicated they are looking at adding new banks to their roster of financial partners, given their concerns about the stability of the more troubled banks. That’s particularly true for banks that accepted government guarantees and capitalization. “We’re seeing more of a shift toward those banks with positive reputations,” says John Colon, managing director with Greenwich.
In addition to worries over these banks’ stability, there’s some concern that banks that accepted government dollars may be pressured to use that money within their home countries. To be sure, banks that want to remain a player in a global economy can’t simply pull back on existing agreements. But, political pressure could affect their future lending. “It’s a legitimate concern,” Colon notes. more
