Geoffrey Sant co-authored a piece for American Banker about derisking.
In recent years, the global phenomenon of derisking has stripped hundreds of thousands of individuals and businesses of bank accounts, robbed communities of bank branches, and forced banks to close.
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Disturbingly, the U.S. Department of Justice and the primary regulator of more than 4,700 U.S. banks, the Federal Deposit Insurance Corp., together operated what was effectively a government-mandated derisking program through last year.
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The regulators claim to want an individualized approach to high-risk customers. But in actual practice, the regulators continue to pressure and punish banks with customers in legitimate industries that the regulator labels “high-risk.”
