Shown below, is an actual letter that was sent to a bank by an 86 year old woman. The bank manager thought it amusing enough to have it published in the New York Times. 

Dear Sir:

I am writing to thank you for bouncing my check with which I endeavored to pay my plumber last month.

By my calculations, three nanoseconds must have elapsed between his presenting the check and the arrival in my account of the funds needed to honor it.

Volatility in the equity markets, credit market dislocations and continued concerns about market liquidity are prompting hedge funds to seek out prime brokerage and custodial relationships with investment banks of sound financial health.

In the wake of Hurricane Katrina and increased attention to the threat of a biological pandemic, the OCC, Federal Reserve Board, FDIC, OTS, NCUA, and FTC (the Agencies) consolidated five years of lessons learned and planning considerations into new federal guidance on effective business continuity planning.

Online bank deposit rates have increased over the last month with leading online banks like GMAC Bank, Countrywide Bank, and E-Loan Bank increasing rates on either certificates of deposit, money market accounts, savings accounts, or checking accounts. The conviction amongst economists that the Fed is likely to be finished lowering interest rates in 2008 has given banks more confidence to increase their deposit rates with the anticipation that interest rates in general are on the rise. Rates on savings accounts and money market accounts are still lingering below 4%, but are expected to begin a slow crawl back towards the 5% rates seen at the beginning of the year.

Online banking customers are watching with perked interest an increase in media speculation that the FDIC will close more banks in 2008. The tally of 4 banks closed this year already exceeds that of the previous three years combined, but many banking analysts feel convinced the number will climb much higher. Online banking customers are expected to begin to more closely monitor the financial health of their banking institutions as this story unfolds in 2008.

Community Banks have been profoundly affected by the current credit market difficulties.  Many will need to reposition their market focus and adopt innovative growth strategies to build its capital base and maintain profitability if it wishes to remain independent.

Community banks have confronted drastic market challenges during the not to distant past.  For example, during the 90’s community banks dominance of the small and mid-size business (SMB) market began to erode. The dynamics of the banking industry changed rapidly.  Large money center and regional banks leveraged technology, operational and balance sheet scale to provide access to inexpensive credit products bundled with cash management tools.  They were armed with huge marketing budgets and became adept at selling a growing array of transaction services that met the growing sophistication and business needs of the lucrative SMB market.

The current banking crisis forebodes yet another drastic alteration in the structure, regulatory and businesses practices of the industry.  The current banking crisis will forever alter the face and scope of community banking sector.

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Banks report record losses (some may fail), the dollar is devalued and the Federal Reserve may offer another rate cut.

On the heels of the FDIC’s Quarterly Banking Profile Report for quarter 4 2007 the US Federal Reserve is considering another rate reduction, not to mention that the dollar has slumped to new lows in the Foreign Exhanges (FOREX).  Oh, did we mention that subprime was the word of the year for 2007?