What regulations could be imposed on the banking industry?
The banking industry is already highly regulated. Fannie and Freddie and the other sectors that were complicit in this problem due to greed were not highly regulated. Most banks actually played a very small role in this. The players were borrowers who borrowed more than they could afford to pay back, and mortgage brokers who were pushing through mortgage applications and, it’s also documented, in some cases falsifying the information on those applications. That clearly was wrong. You had debt-rating agencies that were putting their stamp of approval on mortgage-backed securities in return for fees. That turned out to be wrong. And you had Wall Street, the largest and most sophisticated financial institutions, buying these securities and paying too much for them, and that proved to be wrong. How is River City Bank faring today? We’re doing well. We have an incredibly safe and robust balance sheet. There are three key measures of balance sheet strength. One is capital, the cushion to abs
