BankThink

Disclosure Rules Are the Wrong Way to Push Social Change

06/24/15

The growing popularity of impact investing has led to a raft of new disclosure rules. The problem is that using the SEC to monitor companies' CEO pay policies and use of "conflict minerals" decouples the government agency's authority from its area of jurisdiction.

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The Best Investment Advice Isn't Always the Cheapest

06/24/15

A number of class-action lawsuits allege that investment advisers breached fiduciary duty by failing to recommend the least expensive products. But both trust law and investment theory acknowledge that responsible advisers take other factors into consideration.

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Morning Scan: Housing's Uneven Recovery; Digital Banking on Dates

06/24/15

Receiving Wide Coverage ...

An Uneven Recovery: Home prices are appreciating in wealthier areas, but values in poorer towns continue to lag behind, the Wall Street Journal reports. In the working-class suburb of Lithonia, Ga., for example, 54% of homeowners are underwater; the same is true of 15% of homes worth less than $200,000 nationwide, compared to just 6% of homes worth more than $200,000. One way to help struggling homeowners could be to slash the...

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FDIC Premium Plan Is Too Little, Too Late

06/23/15

Risk-based premiums should apply to big banks as well as small ones. That's because the assessment would have an immediate impact on big banks' quarterly profits, thereby appropriately charging them for the competitive advantage and privilege afforded by their size.

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Don't Let Big-Bank Politics Distract from Small Banks' Plight

06/23/15

Congress should avoid becoming so focused on the problems with big banks that they overlook the community lenders suffering from a lack of regulatory relief.

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Morning Scan: Bernanke's a Hamilton Fan; Teaming with Marketplace Lenders

06/23/15

Receiving Wide Coverage ... Save Hamilton: Ben Bernanke has joined the growing chorus of those who say the Treasury should bump Andrew Jackson from his perch on the $20 to make way for the first woman on U.S. currency Â-- and leave Alexander Hamilton be on the $10. The former Fed chief writes on his blog that he's "appalled" by the plan to push aside Hamilton (who Bernanke calls "without doubt the best and most foresightedÂ...

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Apple Pay's Lack of Loyalty Perks Is a Smart Move

06/22/15

Apple realizes that retailers are uniquely well-positioned to encourage mobile payments adoption. That's why the company's decision to start accepting retailer loyalty cards on Apple Pay before launching a loyalty program of its own makes good sense.

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The Safe Way to Give Traditional Banks Regulatory Relief

06/22/15

Determining regulatory requirements based on banksÂ' activities rather than their size would liberate old-school institutions from unnecessary burdens without endangering the financial system.

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Morning Scan: Dimon on Jimmy Lee; Regulators' Biggest Fear

06/22/15

Wall Street Journal Jimmy Lee, the JPMorgan Chase vice chairman who unexpectedly died last week, will be "irreplaceable," according to CEO Jamie Dimon. Lee was responsible for being the point man to JPMorgan's top corporate clients; his duties will be farmed out to several executives. One example of Lee's importance: when General Electric earlier this year decided to sell off its GE Capital banking unit, Dimon and Lee were both summoned to a GE conference roomÂ...

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Why Errant Bankers Get Sweetheart Deals: Weekly Wrap

06/19/15

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including the need to hold bankers accountable for criminal deeds and whether the FDIC's proposed recordkeeping requirement is smart planning or pointless.

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