I have a degree in journalism, not economics. So while that makes me potentially qualified to run for vice president, it doesn’t make me an expert on the banking crisis.
But I know enough to know this: Technology wasn’t the problem.
Just two years ago, Bill King, the publisher of Bank Director magazine, wrote:
New information technologies have had a huge impact on giving bankers a better handle on credit quality, monitoring of loans, and gauging the profitability of products and services. Managing the bank isn’t any easier, but the financial technology available is a quantum leap forward from what bankers worked with 20 years ago.
OK. I’ll take his word for it. The technology worked. But if it did, then what went wrong? There’s only one explanation. People.
Of course, with just that journalism degree, it’s impossible for me to say which people should be held responsible. So I’ll leave that up to you…