A Tale of Community Banking
By Marc Tracy
MSNBC runs a fantastic little story on the small businesses of Westwood, N.J. and how they have come to rely on the local, publicly owned community bank to get them through the months and years. (The community bank in question, it should be noted, was wise enough to stay away from the junk real estate loans that have helped cause the failure of 100 banks in 2009.) It's especially fascinating to hear all this stuff from the businesses' perspectives, straight from their owners' mouths. When times are tough, the consensus advice--and we ourselves have given it--is: first, slash payroll. But small business owners don't particularly want to lay anyone off, since their employees are, in the words of the restaurant owner interviewed, "family". Fortunately, it seems these owners' relationship to their employees is similar to the community banks' relationship to these businesses.
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November 4, 2009 1:03 PM
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