Hard to Start Up

Note: i wrote this 3 days ago on the plane to Paris, but MS Writer didn’t upload it like it claimed… 😦

So i was reading an article online about the only new bank this year; they started up in a double-wide trailer. 🙂

But the part that was interesting to me was a discussion of how hard it is to start a new bank during the present economy, not only due to the present economic downturn, but also in the face of intense scrutiny on the regulatory commission, which has responded by leaving applications for new banks lost in limbo. So the article is about how one small start-up was able to “win this year’s regulatory lottery.”

The article goes on to describe how they had the necessary start-up capital, Mr. Spense’s past experience running banks, and the fact that banks in his particular locale are financially solvent.

But we know none of these things are causes, because if having experience in banking was what was needed to get regulatory approval, then any start-up with experienced management would get approved—but this is not the case. If it were, Mr. MacDonald, a lawyer in Atlanta who advises banks on regulatory matters, would not be saying he believes the F.D.I.C. had imposed an “unofficial moratorium” on new bank charters—he would just advice each bank to get more experienced managers, and it would solve the problem.

You could try to argue that having an experienced management team is a condition for getting approval, but you couldn’t say it was a cause; we’re very scientific—if you have the cause in place you should get the result. So if having an experienced management team were the cause, the result should naturally follow. As this is not the case, then we have to go further to look for the cause.

What about our article’s other suggestions: necessary capitol or a friendly environment? Same problem as before, maybe these are nice conditions to have, but they don’t guarantee the result we’re looking for.

So what does?

Generally speaking, whatever you want you have to do for someone else first. So if you’re experiencing someone being non-cooperative, you should check and make sure that you’re being cooperative yourself, always keeping in mind two things: one, the result of any seed is always bigger than the seed. If you plant an acorn, how big is the tree that results from it? Mental imprints work the same way. So you might be doing something very small in your life, which manifests something much bigger. Double-parking on the street and leaving someone else blocked in comes back as your bank approval being stuck in limbo.

The second thing to stay aware of is what we call 3rd party karma—be aware that every part of your life overlaps. So yelling at your kids at home comes back to you as seeing your boss at work yelling at you. So be careful when your husband/wife/son/daughter asks you if they can go out somewhere—inconsiderately answering “no” might slow down your bank approval process.

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