Bankers Say Downward Spiral Has Not Reached Tennessee, Yet

Tennessee bankers are on the edge of their seats watching the debate in Washington. They say the risk of not passing a meaningful bailout plan is more about a financial crisis that could come than one that’s already here.

Tim Amos of the Tennessee Bankers Association says its institutions are adequately capitalized – meaning they have more than 6-percent in reserves.

If Congress doesn’t pass an economic recovery package, Amos says it’s only a matter of time before the downward spiral of global financial markets hits hard locally.

“At some point in time, that spiral gets to Tennessee, but that’s not today, and hopefully they’ll have time to act before that gets to Tennessee.”

Amos admits bankers are going into public relations mode, trying to calm any fears and avoid panic. He likes to remind account holders that no one has ever lost a penny on FDIC insured accounts.

The bankers association represents all 237 community banks across the state.