BankThink

Morning Scan: HSBC Says Workers Play It Too Safe; CFPB Targets Debt Collectors

08/04/14

Receiving Wide Coverage ...

HSBC Earnings Fall: HSBC's first-half profit dipped 5% from the same period a year ago because of sluggish performance in its investment banking, wealth management and retail businesses. Its net profit was $9.46 billion, compared to $10 billion. HSBC chairman Douglas Finch cited employees' fear of regulatory punishment as a mounting concern. "There is Â... an observable and growing danger of disproportionate risk aversion creeping into decision-making in our businesses as individuals,...

[more]

A Subsidy of Any Size Is Still Too Big

08/01/14

A new government report finds that the size of big bank subsidies falls in stable periods and increases in times of stress. That spells danger when the next crisis comes around, writes Independent Community Bankers of America chief Camden Fine.

[more]

Bank Risks Must Be Made Clear to Investors

08/01/14

Today's investors realize how little they understand banks' risk exposures and are skittish about providing risk capital. The solution is to create transparent bank reports that present information in a clear, accessible manner, according to Vincent Papa of the CFA Institute.

[more]

Morning Scan: Who's Calling Who TBTF?; Overdraft Fees Under a Microscope

08/01/14

Receiving Wide Coverage ...

GAO No Help on TBTF: So are certain banks "too big to fail"? The release of the Government Accountability Office's report on Thursday did little to answer that question, with both sides claiming victory, as an American Banker article noted Thursday. The Financial Times quoted Paul Saltzman of the Clearing House (the group representing JPMorgan Chase, Citi and other big Wall Street firms) saying, too big to fail "perceptions have substantially diminished."...

[more]

Three Steps Toward Making Better Margins on Mortgages

07/31/14

Banks can boost mortgage profits with the help of direct call centers and products like adjustable-rate mortgages and jumbo loans, writes Stratmor Group's Garth Graham.

[more]

Why We Should Scrap Mortgage Interest Deductions

07/31/14

The mortgage interest tax deduction is supposed to encourage homeownership among low- and middle-income Americans. But it primarily benefits higher-income taxpayers, according to a new study from the Mercatus Center at George Mason University.

[more]

Morning Scan: Judge Fines B of A in 'Hustle' Case; Fed Sees Good Signs

07/31/14

Receiving Wide Coverage ...

B of A to Pay for 'Hustle': Federal Judge Jed Rakoff ordered Bank of America to pay $1.3 billion for selling toxic mortgages to Fannie Mae and Freddie Mac, as part of its so-called "Hustle" program. The $1.3 billion penalty was less than the $2.1 billion the government sought, but "greatly in excess of what the bank hoped to pay," the Financial Times reported. Rakoff, who called the scheme "brazen fraud," also...

[more]

How Community Banks Can Overcome Seller's Reluctance

07/30/14

Bank owners can make more objective decisions about whether it's the right time to sell by comparing the value of holding onto the bank to its private market price and instating an external review process, writes consultant J.V. Rizzi.

[more]

A Diminished Banking System Is Bad for Americans

07/30/14

Community banks are disappearing and big banks' global power is on the wane. Regulators should take steps to reverse these trends so that all Americans have access to the financial services they need, according to the American Bankers Association's Wayne Abernathy.

[more]

Morning Scan: DOJ Extends Barclays Probe; Lawsky Wants Internal Monitors

07/30/14

Receiving Wide Coverage ...

Forex Probe Update: U.S. prosecutors have stepped up their probe into Barclays' alleged foreign exchange manipulation, the Wall Street Journal, New York Times and Financial Times all report. The London bank said the U.S. extended a pact known as a "nonprosecution agreement" in the investigation. The new pact gives the Justice Department more time to decide if Barclays breached the 2012 nonprosecution agreement it had previously signed not to commit crimes in...

[more]