BankThink

The federal government's unlawful sweep of Fannie and Freddie profits has sent a clear message to private capital: There's only downside to being the government's partner in a time of crisis.

As the CFPB focuses on the screening processes that banks use to vet checking account applications, regulators should try to maintain a balance between safety and soundness concerns and consumer protection.

Banks have never before had to establish policies and procedures at the granular level required under the new regulation. Doing so in a timely manner will be a challenge for most institutions. For some, it will be impossible.

Receiving Wide Coverage.... Banks Take Beating in Stock Market: Wednesday's stock market swings hit banks hard as fears of a sputtering global economy took hold. "U.S. bank stocks suffered their worst one-day fall in almost two years," tumbling 3.4%, according to the Financial Times. Bank shareholders are worried that the sluggish global recovery and potential for deflation in the U.S. and Europe could keep interest rates low even longer than expected, the papers report. "People areÂ...

Unless regulators coordinate their efforts to reform banks' home lending, mortgage servicing and remittance businesses, American consumers will continue to lose access to affordable financial services.