Panic causes people to do irrational things. Just because one bank fails, doesn’t mean your bank is going to fail?
Tell that to all those who sold shares of any and every bank stock they owned when they heard about a bank in California that was going under. (Why is it always California?) Now would be an excellent time for investors to buy shares of these now wonderful values.
Here in Louisville, banks are less likely to go after riskier prospects like the whole sub-prime debacle, so they’re in a better position to weather the cyclical downturns that are part of doing business.
All I know is that I recommend to my real estate clients that they use local banks like Republic or Stock Yards for their mortgages rather than national firms like Chase or Citi. Not only is customer service miles better, their rates are often just as good.
