This article was written by
Richard J. Parsons is a former banker who writes about the banking industry as well as market risk. He is currently working on his third book on banks. His first book, “Broke: America’s Banking System” (2013, RMA), describes why the industry is prone to catastrophic cycles that produced 3,000 bank failures in the United States between 1985 and 2012. The second book, “Investing in Banks” (2016, RMA) examines why a small group of elite banks of all sizes consistently outperform the industry over time and through the ups and downs of business cycles. The new book will update “Investing in Banks” with data from 2016-2021. Parsons is a frequent contributor to the Risk Management Journal. He teaches the Advanced Operational Risk Management course for the RMA. Prior to writing and speaking in the banking industry, Parsons spent more than 31 years at Bank of America where he served as executive vice president and member of the management and operations committee. In his last position, he chaired the operational risk and compliance committee and the emerging risks committee of the bank. Parsons holds a BA in history from Ohio Wesleyan University and an MBA from the Darden School of Business at the University of Virginia.
Disclosure: I/we have an advantageous long position in shares of ALLY, BRK.B, either through stock ownership, options or other derivatives. I wrote this article myself, and it expresses my own opinions. I don’t get any compensation for this (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.