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BankUnited Chairman John Kanas breaks down the similarities and differences in the banking sector between the 2008 meltdown and today.
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-- earlier.
Well the financial sector folks under pressure in the wake of the downgrade her round of -- with many comparing the current economic climate.
To that a 2008.
For the world's banks.
Is history repeating itself John -- this is bankunited chairman CEO and president and He is here.
And Johnny you whipped through the financial crisis of 2008.
Now here we are in 2011.
Are -- similarities.
In the banking sector between oh wait and today.
Actually the -- the very.
The pre the 2008 meltdown was more of a reciprocal to what is going on today really began with consumers who were borrowing too much.
And spending too much and that began to infect financial institutions and spread to spread globally.
Unfortunately.
The situation today is is quite the reverse consumers are not spending.
Because they're not borrowing because for the most -- most part they can't.
Unemployment is nagging me high and and and so while there was a it was a great lack of liquidity.
That caused the meltdown of 2008.
There's an excessive liquidity today which is bring about the same unfortunately the same results.
You know John you were one of the -- computers long with BlackRock and Carlyle.
In taking bankunited -- from bankruptcy.
To IPO in eighteen months when the most successful IPOs of any bank that I've ever seen.
If you had your druthers right now how would you fix.
Other current state of the financial markets that means some say that we still have a credit crisis you say it's the other direction what would you do.
Well if I guess -- knew the answer to that I wouldn't be sitting here talking to you but.
There were the real the real problem is that that anything that we do that.
That most people would construed to be in the long term best interest of Americans that is to solve the debt issues longer term will put pressure.
On the short term economy.
What what we've seen happened in the last ten days or so and certainly with the downgrade by S&P is put more political pressure on policy makers.
To reduce further government spending ultimately I suppose to increase taxes and one of those things will -- bring about a better solution.
Long term for the United States in the short term.
They will both put pressure additional pressure on an already sagging economy so.
I'm not sure that there is an answer that's gonna make everyone happy that the the fact is that.
We are as Americans.
Going to have to live through a period of difficulty and experience a fair amount of pain here if we're going to put our country back on the right path and in the long run good.
All right -- the banking sector certainly had a lot of pain yesterday and Bank of America certainly have a lot of pain yesterday Jon Canas.
Bankunited chairman CEO and president thank you very much -- --
