BACK-GROUND: Small businesses create the majority of new jobs in America. Small Community Banks are the “engines” that provide the majority of loans/credit to them. Every 33 years on average, these vital small banks become unnecessary victims of collateral fall-out from U.S. over-stated financial disasters. A relatively small market swing can cause mass panic resulting in these small banks going out of business. As a result, more than 13,000 banks, mostly small banks, failed and closed during the last 100 years. Had there been no over-stated market crisis, the majority of these banks would not have failed.

When big Wall Street financial firms started the financial crisis, little banks panicked for fear of being closed and sold to larger banking firms. 500 eventually were sold. These small banks were being hurt for something they had nothing to do with and were rightfully angry at large Wall Street firms. To make matters worse, banks were being pressured by Federal and State regulatory agencies to deleverage which in many cases resulted in no more lending to small business, regardless of their soundness. Under extreme pressure of losing their banks, many bankers went into survival mode. Out of fear and panic, many turned a blind eye toward their customers and stopped making new loans. They also began cutting off loyal customer’s existing credit. In spite of help from government QE and TARP, it seemed no one could convince bankers to continue lending to their good customers. Some, desperate for revenue sources, became opportunists and began squeezing and manipulating loans into default to profiteer from 21% interest rates, highly attractive penalties/fees and subsequent business liquidation opportunities. Others even went further pushing customers into insolvency, humiliating and extorting their families for extraordinary gains. Their unwillingness to lend to long-time successful customers contributed to the first wave of small business closures resulting in 3.3 million job losses. That fueled more unnecessary panic. Eventually 220,000 businesses closed taking 9 million jobs out of the economy, most which would have survived if not for the over-stated market crisis snow-ball effect. Over 500 banks closed and sold to large banks which otherwise would not have. Six million families lost their homes that otherwise would not have, needlessly ruining decades of family wealth. Small Community banks played the leading role in turning a little problem on Wall Street, they had nothing to do with, into the largest over-stated and unnecessary disaster since the Great Depression. Big bank financial institutions caused the initial crisis to take hold and little banks gave it the wind to spread like wild fire.

BANKER DESTROYS AMERICAN JOBS: The Great Recession was very troubling to the Frantzs. During the prior three decades, they built up a successful $20m annual sales Healthcare Assisted Living business. Their banker was one of over a thousand that were in deep trouble with the Federal Reserve. In response, the CEO breached his duty to the Bank Charter granted to him by Congress, failed to extend promised credit to good customers, manipulated loans and maliciously forced borrowers into bankruptcy, destroying hundreds of jobs in their community. The Frantzs were shocked and could not believe nor understand how something like this could happen in America.

PREVENTION: Economists agree that major recessions and depressions are avoidable, over-stated and unnecessary destructive market swings caused by design flaws in the American banking system. Dodd-Frank banking regulations were supposed to prevent future financial crises. It was well-intended but needs to be repealed and reformed. The way to prevent future recessions is to protect borrowers by removing the incentives bankers currently have to forsake their duty to serve the public. Borrowers must be granted protections so they are not caught up in bank troubles that have nothing to do with them. If proper incentives had been established before the crisis, it would have largely stopped the run-a-way train. There would have been no over-stated market swing and there would have been little or no recession. 500 banks, 220,000 businesses, 6 million homes and 9 million jobs would have been saved!

AFTERMATH AND SOLUTIONS: Financial havoc is extremely destructive to the security of our Nation. For those attempting to climb the wealth latter, after decades of finally achieving financial independence, crises make it far more likely that they will be knocked down to the bottom, at no fault of our own and have to start over. But most disturbing is once we are knocked down to the bottom of the latter, it’s more likely we will never be able to start over again and become side-lined for the rest of our lives. Thousands of small business entrepreneurs like the Frantzs, who for decades were successful, are still side-lined today due to the catastrophic aftermath of the Great Recession. They are trapped and constrained from publicly voicing the embarrassment and humiliation they experienced. Through their harrowing experiences, the Frantzs felt they were given exceptional insight into the allusive question on all American’s minds. How can our Nation recover from the Great Recession and how can we prevent them in the future? The Frantzs wrote up 9 provisions for legislative change and headed to Washington DC. Click on the 9 Provisions for the Financial CHOICE Act and also click on the VIDEO link of their 3 days on Capitol Hill.

THE PURPOSE AND IDEALS OF FAIR BANKING: Fair Banking is a grass-roots concept started by the Frantz’s. Those who share these same values provide education, consulting, and related materials on their own to other Americans who desire to fix the aftermath of the Great Recession and prevent future financial crisis. It a movement that reaches across bipartisan lines to support the missions envisioned by the following ideals;

1) The Independent Community Bankers of America (ICBA). We strongly supports this organization’s reforms for long-term strong sustainable banks through less government regulations and intervention.

2) The Consumer Financial Protection Bureau (CFPB). We strongly supports this organization’s current reform to expand its authority and administer a “Citizen’s Borrowers Appeal Board” made up of everyday citizens as a one-stop-shop for all loan disputes. This will provide a balance of power between borrowers and lenders to create proper incentives for both. Borrowers, empowered by the CFPB, will be able to stop future over-stated banking catastrophes by putting up road blocks that will delay and quell unjustified market free-falls. Their action will give the government time to figure out what markets, if any, need to be deleveraged and to do so in an organized structured manner that preserves existing viable business concerns. Had that been done during the Great Recession, economists largely agree that the catastrophe would have only been a minor market correction.

3) Financial CHOICE Act. We strongly support this reform which repeals the majority of excessive regulation over small banks. We do not support the Act’s repeal of the Volcker rule limiting banks insured by the government (FDIC), to participate in high risk investment and trading markets as also expressed by US Treasury Secretary, Steven Mnuchin in his Senate confirmation hearings.

We believe the right to create money and credit from computer key-stroke accounting entries, is a very special privilege of governments that belongs to the citizen’s of the United States. Congress delegates that extraordinary privilege to bankers who promise to use it wisely to prosper our great Nation. Bankers who truly understand the mantel they administer in behalf of our citizenry, highly value their customer’s enterprises and will do everything in their power to see them succeed, even during financial crises.

We reach across bi-partisan lines and support sustainable success for our countries Banking Institutions. We strongly support middle-class and low-income Americans by promoting “opportunity” solutions to climb up the wealth ladder. We offer practical solutions for the 10 million citizens with Student Loan delinquencies and the 42 million citizens who are on food stamps today. We encourage the use of all available means – education, legal action, and political forums – to make lending transparent and accessible to the public.

CONCLUSION: The Baby Boomer generation contributed to the greatest American Banking system design flaws in modern history which devastated middle-class America and intensified the likelihood of bringing back citizen class warfare. Due to the fall-out of the Great Recession, Americans are rightfully angry. We aspire to repair these design flaws, re-build lost confidence in the American Banking System and return it to its former glory. We would love to hear your story. Email: preventingcrisis@gmail.com