Broke: America's Banking System, Common Sense Ideas To Fix Banking In America E-Book

Published by RMA and written by Richard J. Parsons, Broke: America's Banking System, Common Sense Ideas to Fix Banking in America recommends systemic improvements to basic banking in America and offers a common sense approach to transforming the industry.

The recent financial crisis revealed substantial design flaws in the U.S. and global banking systems. Although public policy makers like the Federal Reserve have done an admirable job of preventing the crisis from becoming the Second Great Depression, the system remains flawed. As a result, the U.S. is vulnerable to future banking shocks that could lead to greater government intervention and more financial hardship for Americans.

Parsons seeks to break the trend of repeating the same mistakes with thoughtful insights and recommendations to help the banking industry regain its stature.

Broke consists of five sequential parts:

Part 1 - Case Study: The Community Banking Crisis in America
Part 2 - Bankers and Directors: It's Time to Raise the Bar
Part 3 - Apple Pie, Chevrolet, and Bank Failures
Part 4 - Questions for Regulators and Lawmakers
Part 5 - Moving Forward

The appendices provide an introduction to specific operational risk management tools and processes. Bankers and directors will find the appendices to be a source of practical applications to jump-start or accelerate their operational risk management programs.

Although much has been written about the financial crisis, Broke is different in three distinct ways:

1. It is the only book written by a roll-up-your-sleeves, lifelong banker whose work for 30+ years of work in the industry cut across virtually every aspect of modern banking.

2. Broke provides a much-needed historical backdrop to develop a fact-based, common-sense view of why more than 3,400 financial institutions have failed in the U.S. since the mid-1980s. It offers insights about macro patterns to understand not only the "what" of bank history but the "why."

3. The book is about basic retail and commercial banking in America practiced by 99.7% of America's banks and about the banking services used by 99.9% of America.

Praise for Broke: America's Banking System

"This book is a welcome reminder to policymakers, regulators, and bankers that rebuilding banks' human capital is as important as rebuilding their financial capital. It should be read by all involved in renewing our broken banking system."

- Simon Thompson, CEO, Chartered Banker Institute, Edinburgh, Scotland

"A great analysis of the history and causes of bank failures. It should become a required primer for new directors and a provocative call to action for existing boards. Highly recommend!"

- Daniel C. Regis, Independent Director and designated "Financial Expert," Columbia Banking System, State of Washington

"Rick Parsons is well-positioned to describe the financial crisis and its effects on basic retail and commercial banking. Bankers, directors, lawmakers, and regulators will benefit from this informative and passionate book."

-William F. Githens, President and CEO, The Risk Management Association