NBT exec weighs in on Wall Street woes
NORWICH – Chenango County’s most prominent bank and leading corporate citizen supports the federal government’s proposed bailout of Wall Street’s investment banking industry.
Prior to the United States Senate’s approval last evening of the now $800 billion plus infusion, NBT Bank, N.A. President and Chief Operating Officer Martin A. Dietrich said he was in favor of it. Some type of package is necessary, he said, in order to keep the nation’s economy from slipping into a deep recession.
“If not remedied, it will spill over Main Street, and then we are looking at a very deep and prolonged weakness in the economy,” Dietrich said. “It’s absolutely critical. No one wants a bailout, but it’s what the credit markets need right now.”
The banking executive participated in a conference call yesterday afternoon with New York Senator Hillary Clinton. He said the senator hoped to garner support for the bailout from the state’s corporate leaders who were invited to participate in the conference.
“There’s a lot of political fever going on right now,” Dietrich said.
The Senate’s version of the original $700 billion bailout bill now proceeds onto the House of Representatives which will attempt, for a second time, to pass it. House Republicans and Democrats couldn’t agree about the measure’s provisions on Monday, and sent the Dow Jones Industrial Average on a dive down 777.68 points, or 7 percent.
Dietrich said it was “very, very important” that some type of bailout package be approved by Congress.
As for the Norwich-headquartered bank’s stability, NBT’s stock price has reflected a number of really strong quarters of performance and the bank is “sound, safe and secure,” according to Dietrich. A recently launched advertisement campaign reinforces the attributes of the company.
While a number of customers have inquired at the branch level about the crisis in the credit markets, Dietrich said most understand that NBT is not exposed.
“What’s happened, unfortunately, is it’s a relatively small number of very, very large investment banks and brokerage firms that have been painting a real broad brush stroke of the entire industry, which is not at all the case. As investment banks have grown and become much more complex, the regulatory oversight was perhaps not able to keep up with that. Banks and insurance companies are heavily regulated and remain sound,” he said.
NBT has, however, experienced an influx of business from new customers and some existing customers have switched from mutual funds and stocks to less risky investments such as certificates of deposit.
“A small number of customers’ dollars are being reallocated to what’s perceived as being safer and more sustainable,” said Dietrich.
NBT Bank, N.A. is a full service commercial bank formed in 1856. The bank provides a broad range of financial products to individuals, corporations and municipalities throughout its 80 offices and more than 100 ATMs offices in upstate New York and Northeastern Pennsylvania. The bank conducts business through two operating divisions: NBT Bank and Pennstar Bank.
Prior to the United States Senate’s approval last evening of the now $800 billion plus infusion, NBT Bank, N.A. President and Chief Operating Officer Martin A. Dietrich said he was in favor of it. Some type of package is necessary, he said, in order to keep the nation’s economy from slipping into a deep recession.
“If not remedied, it will spill over Main Street, and then we are looking at a very deep and prolonged weakness in the economy,” Dietrich said. “It’s absolutely critical. No one wants a bailout, but it’s what the credit markets need right now.”
The banking executive participated in a conference call yesterday afternoon with New York Senator Hillary Clinton. He said the senator hoped to garner support for the bailout from the state’s corporate leaders who were invited to participate in the conference.
“There’s a lot of political fever going on right now,” Dietrich said.
The Senate’s version of the original $700 billion bailout bill now proceeds onto the House of Representatives which will attempt, for a second time, to pass it. House Republicans and Democrats couldn’t agree about the measure’s provisions on Monday, and sent the Dow Jones Industrial Average on a dive down 777.68 points, or 7 percent.
Dietrich said it was “very, very important” that some type of bailout package be approved by Congress.
As for the Norwich-headquartered bank’s stability, NBT’s stock price has reflected a number of really strong quarters of performance and the bank is “sound, safe and secure,” according to Dietrich. A recently launched advertisement campaign reinforces the attributes of the company.
While a number of customers have inquired at the branch level about the crisis in the credit markets, Dietrich said most understand that NBT is not exposed.
“What’s happened, unfortunately, is it’s a relatively small number of very, very large investment banks and brokerage firms that have been painting a real broad brush stroke of the entire industry, which is not at all the case. As investment banks have grown and become much more complex, the regulatory oversight was perhaps not able to keep up with that. Banks and insurance companies are heavily regulated and remain sound,” he said.
NBT has, however, experienced an influx of business from new customers and some existing customers have switched from mutual funds and stocks to less risky investments such as certificates of deposit.
“A small number of customers’ dollars are being reallocated to what’s perceived as being safer and more sustainable,” said Dietrich.
NBT Bank, N.A. is a full service commercial bank formed in 1856. The bank provides a broad range of financial products to individuals, corporations and municipalities throughout its 80 offices and more than 100 ATMs offices in upstate New York and Northeastern Pennsylvania. The bank conducts business through two operating divisions: NBT Bank and Pennstar Bank.
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