BankThink

Morning Scan: What Shelby's Bill Means for QM; Wall Street Same as It Ever Was?

05/19/15

Wall Street Journal

Ocwen Financial has put things right with the New York Stock Exchange after filing its annual report for 2014 last week. The NYSE had previously threatened to kick the troubled mortgage-servicing firm off the exchange for failing to comply with its listing standards. Now there's a new bullet for Ocwen to dodge: the firm said Monday it is working with lenders to adjust its debt arrangements in order to avoid liquidity problems. ...

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What Does Good Customer Service Look Like? Most Banks Haven't a Clue

05/18/15

All banks truly believe they provide spectacular, top-notch service. But the vast majority hover close to mediocre and lack the metrics to identify areas for improvement.

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Sorry, Jamie Dimon: Bigger Always Means Riskier

05/18/15

JPMorgan Chase CEO Jamie Dimon defended his institution by arguing that size isn't necessarily an indicator of risk. But the truth is that the larger an organization gets, the more complex it becomes-and the more difficult it is for leaders to keep everything from customer service to fraud prevention working the way it should.

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Morning Scan: Big Banks Step Up Small-Business Loans; Why 'Say on Pay' Fizzles

05/18/15

Wall Street Journal

It's hard to let go of a juicy bonus Â-- even if your former employer famously went down in the largest bankruptcy in U.S. history. The paper reports former hotshot Lehman Brothers trader Jonathan Hoffman is demanding $83 million in unpaid bonuses from the Lehman bankruptcy trustee. The estate, on the other hand, says Hoffman already got his cash courtesy of Barclays, which bought some Lehman assets and hired him after the company's...

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Do Market Perceptions Create SIFIs? Weekly Wrap

05/15/15

A recap of the informed opinions (and the discussions they generated) on BankThink this week, including the financial inequalities exposed by the Baltimore riots and whether the changes to Dodd-Frank proposed in Sen. Richard Shelby's regulatory relief plan go too far.

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Is Shelby's Reg Relief Proposal a Gift to Big Banks?

05/15/15

Sen. Richard Shelby's attempt to reform Dodd-Frank could ease key bank regulations that improve the safety and soundness of big banks. That would be an immense disservice to the American taxpayers who might bear the cost of the changes with future bailouts.

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Morning Scan: B of A's Board Backs Moynihan; Is Nick Szabo the Real Bitcoin Creator?

05/15/15

Wall Street Journal

Despite shareholders' complaints about its sluggish stock price and earnings growth, Bank of America's board appears to be fully supportive of Chairman and Chief Executive Brian Moynihan. As part of an update on Moynihan's tenure, the Journal interviews directors, shareholders, former colleagues and Moynihan himself about his job performance. Jack O. Bovender Jr., the former CEO of hospital chain HCA and a B of A director, applauds Moynihan's personality. "You don't have to...

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Banks Should Scrap Pilot Programs — and Do This Instead

05/14/15

It's difficult to draw useful lessons from a small pilot, since banks typically stack the deck for success. Trying out new projects at average locations that serve average customers can give banks a much better picture of the obstacles that lie ahead.

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How to Lighten Community Banks' AML Compliance Load

05/14/15

Vendors that specialize in Bank Secrecy Act compliance can help ease community banks' regulatory burden while strengthening their controls.

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Morning Scan: Credit Cards Seek Merchants for Partnerships; Starbucks Mobile Hack?

05/14/15

Wall Street Journal

Loyalty trumps lucrativeness, at least for the time being, in the world of credit cards. Issuers like American Express, JPMorgan Chase and Commerce Bancshares in Kansas City are all picking up the pace in securing co-branded partnerships with merchants. The reason? Some merchants' customer bases are deemed more loyal, even if they generate less fee income, and a partnership with a merchant is a considered a more efficient way to grow a customer...

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