BankThink

Higher Interest Rates Won't Solve Banks' Problems

07/29/15

While rising rates may temporarily improve net interest margin and profits, they will not increase bank stock prices for at least three reasons.

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Regulators Should Hold CIT Bank Accountable for Strong CRA Plan

07/29/15

Regulators have given the merger between CIT Group and OneWest Bank the green light Â-- so long as CIT comes up with a revised Community Reinvestment Act plan. This condition is good news for the low-income communities impacted by the merger and sets a strong precedent for regulators' review of future bank deals.

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Morning Scan: Home Prices Flatten in Potential Good News for Buyers; RBS' Citizens Sell-Off

07/29/15

Wall Street Journal

The rate of home-price appreciation has slowed, according to the S&P/Case-Shiller Home Price Index for May, which economists say is a good sign more potential buyers will soon be able to afford to buy. After home prices increased at low double-digit percentage rates per month in 2013, price gains per month this year have hovered just above 4%. A recent report from the National Association of Realtors was somewhat misleading. NAR said median...

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Don't Let Outdated Laws Shackle Credit Innovation

07/28/15

There is no reason a bank should be able to issue a loan and enjoy one set of rules while a marketplace lender, essentially issuing the same loan, must deal with a morass of conflicting state standards.

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Blockchain Technology Will Erode Banking Borders

07/28/15

In the years ahead, look for projects that leverage the Bitcoin network to greatly expand mainstream banking infrastructure's reach into new markets Â-- particularly those in volatile economies.

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Morning Scan: Merchants Seek Dismissal of $6B Credit Card Settlement; Faulty Credit Reports Targeted

07/28/15

Wall Street Journal

If you can't trust your lawyer, who can you trust? Visa, MasterCard and millions of merchants may see the $6 billion settlement of a class-action lawsuit go up in smoke. The reason is what a legal ethics expert described as "gross misbehavior" by the lawyers involved. The settlement resolved a lawsuit alleging the credit-card networks engaged in price-fixing when they banned merchants from charging customers more when they used a credit card instead...

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Make Bank Consultants Directly Accountable to Regulators

07/27/15

Regulators rely for critical information on consulting firms that are paid by the very same banks that they are engaged to evaluate. This conflict of interest has repeatedly proven toxic.

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A Banking Revolution Even Regulators Can Love

07/27/15

In order for the financial services industry to achieve its full potential in the digital age, Silicon Valley must work together with banks and lawmakers to build technology that can modernize banking infrastructure while addressing regulatory and cybersecurity challenges.

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Morning Scan: B of A to Pledge $75B to Climate Change Lending; Citi, B of A Shares Lag

07/27/15

Wall Street Journal

Bank of America is one of more than a dozen companies expected to sign an agreement Monday at the White House to address climate change. B of A and others will invest more than $140 billion to reduce carbon emissions. B of A specifically will commit $75 billion through lending and other financing by 2025; it's on top of a previous commitment of $50 billion by B of A. None of the companies...

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The Dodd-Frank Haters Club: Weekly Wrap

07/24/15

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including recommended reforms to the Consumer Financial Protection Bureau and Ripple Labs' efforts to work toward a decentralized payments protocol.

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