Snapshots: Quick hits from around the financial industry
Bribes: one way to buy deposits
National Bank of Kansas City is offering a free $50 Lowe’s Gift Card for opening a personal checking account. TCF Bank just announced their $50 Free Cash Checking Campaign. Neighborhood Credit Union is offering a free $100 bonus. HomeStreet bank is offering up to $215 free. At least Key Bank is giving away something a little different: a free Garmin nüvi GPS for banking with Key.
Umpqua adds ‘green’ to its org chart
Umpqua Bank has created a new eco-banking division and given employee Dan Weldon the title of Eco-Banking Manager. As the bank’s new eco-chief, Weldon will lead the development, delivery and tracking of green programs, including the GreenStreet lending program which offers financing options designed to help small businesses. Weldon is a LEED Accredited Professional (which means he knows how to design green buildings), so he will oversee lending for Umpqua’s business customers seeking funds for green construction projects.
Take it back. No, you keep it.
Lately, banks have been lining up to give back TARP money. TCF Bank was one of the first, but the Treasury said no. TCF says it was asked to participate in TARP even though it didn’t need the money. TCF is understandably frustrated.
On the other hand, Shore Bank must be thrilled. The Treasury said yes to their request to return TARP money. Shore felt persecuted by Congress, and didn’t like the public perception that they needed a bailout.
Shore cut the Treasury a $25 million check the same day they were approved for repayment. Lucky for them. So far, they’re the only ones allowed to back the Treasury back.
Can you believe that banks have to ask to pay the Treasury back? What kind of lender doesn’t want his money back? Is there some sort of pre-payment penalty? (See also, Catch 22.)
Noteworthy articles and other items of interest
- Twitter Stats: Pew research shows who is, isn’t using Twitter
- Show Me You’re Nuts! Financial marketer dares credit unions to go crazy
- Green Sprout: Startup e3bank to specialize in green loans
- 6 Key Words for Banks: Stability, Customer, Savings, Value, Brand, Metrics
- Failure Friday: Three banks seized by FDIC on Friday May 1 (2009 total: 32)
- California Crush: CA credit unions threatened by collapse of corporates
- Doom or Gloom? Nobel Prize-winning economist: bank rescue doomed to fail
- Similar Name, Different Bank: One of two ‘Frontier’ banks in CO seized
The WaMu Story
A computer expert with no obvious connection to WaMu has created a website, wamustory.com, where he shares his complex views on the seizure of WaMu. It’s detailed, lengthy, and has an occasional hint of conspiracy.
Trouble for some, opportunity for others
Market Insights offers some thought-provoking advice about how financial institutions shouldn’t just hunker down, they should embrace the opportunity to:
- Reconnect with your customers.
- Deepen customer relationships.
- Reestablish your competitive position.
- Take advantage of customer churn.
- Expand your branch network.
Read the whole article here at their blog.
This article © 2012 by The Financial Brand and may not be reproduced.
More stories about: Briefs, FDIC, Market Insights, TARP, TCF Bank, Umpqua, WaMu 
You might want to rename the “Mistaken Identity: One of two ‘Frontier’ banks in CO seized, consumers confused” link as the article said “Fortunately, customers of Frontier Bank in Pueblo and its two branches aren’t showing any signs of confusing the two.”
[Editor's Note: The headline on the last link at the bottom of this article was changed from "Mistaken Identity" to "Similar Name, Different Bank" per Mark's suggestion. See comment (below).]
Good catch Mark.
I wanted to write more about the problems a financial institution faces when using a name similar to someone else. Even when you’re on opposite sides of the country, who wants to explain that “It wasn’t us who got seized.” But I decided against it because, ultimately, what is a financial institution supposed to do? Change names just because there’s a chance that a similarly-named FI might be seized? Just not enough relevance there. But it’s an interesting story just the same.
Thanks for your suggestion.