BankThink

Fed Becomes Latest Cheerleader for Glass-Steagall-Like Reform

09/14/16

New recommendations by the Federal Reserve Board are a crucial step in the direction of much-needed restructuring of the U.S. financial sector.

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Morning Scan: Wells Officials and Blame; Dodd-Frank Bill Advances

09/14/16

Receiving Wide Coverage ...

Blame game: Wells Fargo CEO John Stumpf and CFO John Shrewsberry both tried to deflect blame for the company's phony accounts scandal. In an interview with the Wall Street Journal, Stumpf "appeared to lay blame for the problems with the employees involved than with any flaw in Wells Fargo's systems or culture." ...

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Banks Should Lead the Way to More Small-Dollar Loans

09/13/16

As the Consumer Financial Protection Bureau proposes new small-dollar lending rules, it has also sought comment on an alternative plan that would open the door to banks providing more lower-income credit solutions.

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Durbin Amendment Helps Retailers, Not Consumers

09/13/16

While the retail lobby won in the political arena and successfully decreased its costs through price-fixing, the biggest loser in this situation was the American consumer.

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The Fintech Honeymoon Is Over — Now What?

09/13/16

With new fintech investments tapering off and banks starting to get the hang of digital innovation, young companies need to take a hard look at their business models.

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Morning Scan: Clawbacks Demanded; $450 Credit Card Blowout

09/13/16

Receiving Wide Coverage ...

Stumpf to the Hill: The Senate Banking Committee plans to question Wells Fargo CEO John Stumpf as pressure on the bank grows in light of the unauthorized accounts scandal. Several Wells executives are scheduled to brief panel members Tuesday prior to the hearing, which is scheduled for September 20. "Clearly there is a disconnect between whatever Mr. Stumpf was telling the public and what was actually going on at Wells Fargo —...

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Wells' Risk Management Tools Should Have Caught This Sooner

09/12/16

Heightened risk management standards and the "three lines of defense" are supposed to help banks ward off scandal, but they failed miserably.

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Wells Is Exhibit A of Employee Incentive Failures

09/12/16

The alleged practices at the heart of Well Fargo's settlement were fueled by a short-term incentive system that is detached from broader goals.

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How 2008 Lending Shutdown May Explain Today's Growth

09/12/16

While troubling factors such as higher risk profiles may be behind the recent lending boom, the industry could also just be returning to the historical average for loan growth following the "Great Panic" of 2008-2010.

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Morning Scan: Wells Not Clear Yet; Both Sides of Blockchain

09/12/16

Receiving Wide Coverage ...

It ain't over...: Wells Fargo's settlement last week didn't end its woes. While the bank was making apologies, officials were assessing the situation. Sen. Jeff Merkley, D-Ore., a member of the Senate Banking Committee, called on the panel to hold hearings to find out exactly what happened. A member of the Federal Reserve Board also weighed in. "What I have seen is that too many banks, instead of putting in place a...

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