exciting times for American Bankers

The credit crunch is a story of mistakes that carry dire consequences. The burden it casts in its wake falls squarely on the shoulder's of the banks themselves. This makes for a painful, yet exciting time of learning.

Crisis=Opportunity
I've heard many times that the Chinese word for crisis is the same as the Chinese word for opportunity. It makes for a great illustration. Last year, when the picture was getting clearer, we began to see how much these American banks stood to lose. The first to feel the pain were the heads that had to roll. A blame game ensued. Not a few top guns fell from glory. Many faced embarrassment. A CEO here and a CEO there, was removed. But, of course, there had to be replacements. New blood, fresh and untainted was called upon to fix the mistakes of others. At the end of the day, the crisis was a great opportunity for companies to shake down and police their own ranks while bringing in fresh talent.

Adversity is a good teacher
Fool me once, shame on you. Fool me twice, shame on me. I have long believed that when the good times roll, we get complacent. And that winning brings far less lessons that losing. The crisis facing the American Banking System may be a blessing in disguise. They may come out of this far stronger than they would have if it never came at all. I wouldn't mind wagering a few bets on that.