BankThink

For Low-Performing Banks, It's Fold or Be Sold

08/12/14

Higher capital requirements, sluggish GDP growth and antiquated cost structures are stymying banksÂ' efforts to boost returns to investors. This will likely lead to a boom in mergers and acquisitions over the next decade, writes Richard J. Parsons.

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Banks Should Steel Themselves for Fair Lending Game-Changer

08/12/14

Expanded reporting requirements under the Home Mortgage Disclosure Act will give regulators access to a panoply of sensitive data. Banks should take steps to address any fair lending issues before the new rules take effect, according to Warren W. Traiger.

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Morning Scan: JPM Sells Private Equity Stake; Usury Charges for Payday Lender

08/12/14

Receiving Wide Coverage ...

Sold: JPMorgan Chase is selling half of its $4.5 billion in holdings in its One Equity Partners private-equity unit, in part because of the requirement that banks reduce investments made with their own money, and in part because of new capital requirements. The Journal story on the sale also throws in another reason for selling the business unit, by pulling a quote from Jamie Dimon from a recent earnings conference call: "It...

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Why the 'Living Will' Process Sets Banks Up for Failure

08/11/14

Regulators need to provide clear standards as to what constitutes an acceptable living will, according to the American Enterprise Institute's Abby McCloskey and Paul H. Kupiec.

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How Heartbleed Changed the Way Banks Think About Cybersecurity

08/11/14

The Heartbleed bug alerted banks to their own vulnerabilities and made them realize that they have heightened responsibilities toward customers when it comes to communicating security concerns, according to Joram Borenstein of NICE Actimize.

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Morning Scan: Job Market Gains, But Rates to Remain Low; Banks' Enemy

08/11/14

Receiving Wide Coverage ... Recovery and Liftoff: There are signs of an improving economy, yes. Factory orders are up, there are fewer vacancies in apartment buildings. Unemployment is falling, too, the Wall Street Journal and Bloomberg report. But, until there is more significant improvement in the job market and wage growth, Fed Chair Janet Yellen and other Fed officials in all likelihood are going to lean toward keeping short-term interest rates near zero, the Journal says.Â...

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Weekly Wrap: Will More Board Duties Curb or Add Risk?; Euro-Whiners

08/08/14

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

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The Case for Closing the Export-Import Bank

08/08/14

The Export-Import Bank benefits just a handful of American companies and is weighed down by corruption, writes Ryan Young of the Competitive Enterprise Institute.

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Morning Scan: Credit Scoring Gets a Shake-Up; Bair Warns on TBTF

08/08/14

Receiving Wide Coverage ...

Credit Where It's Due: Banks may start offering more affordable loans to a broader range of Americans because of changes in the way credit scores are calculated. FICO will place less weight on unpaid medical debt and exclude all overdue bills that have been settled with collection agencies, according to news reports. "The moves follow months of discussions with lenders and the Consumer Financial Protection Bureau aimed at boosting lending without creating...

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European Leaders Set a Bad Example on Bank Regulation

08/07/14

Recent remarks by European politicians and HSBC chairman Douglas Flint are indicative of a mindset that's more interested in complaining about regulations than managing risk, according to Mayra Rodriguez Valladares.

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