BankThink

Morning Scan: Fed to End Bond Buying in October; U.S. Lags in Payments

07/10/14

Receiving Wide Coverage ... The End of Bond Buying: The Federal Reserve will likely end its bond-buying program in October, according to minutes from the central bank's June policy meeting. The Fed minutes say that the decision "should not be interpreted as evidence that rate increases were likely to begin sooner," according to the New York Times. The Times focuses on Fed officials' cautious economic outlook, reporting that many remain concerned about unemployment, sluggish economic outputÂ...

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How Staffing Mistakes Hurt Banks' Mortgage Profits

07/09/14

Banks can increase the efficiency of their mortgage businesses by requiring loan officers to generate leads from outside referral sources and assigning officers only to branches in markets with high origination potential.

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Is the Basel Committee Endorsing 'Too Big to Fail'?

07/09/14

A new report from the Basel Committee says that using public funds to resolve weak banks may be considered in systemic situations. If even capital rule-writers are willing to consider more bailouts, the only way to end "too big to fail" may be to break up the megabanks.

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Morning Scan: Citi Close to $7B Mortgage Settlement; Swiss Bankers Mimic James Bond

07/09/14

Receiving Wide Coverage ...

Citi, DOJ Said Close to $7B Deal: Citigroup and the Justice Department are reportedly nearing a deal in which the bank would pay roughly $7 billion to end a probe of the mortgage-backed securities it sold in the years preceding the financial crisis. The expected price tag appears to be a victory for the U.S. government. The DOJ, which was seeking up to a $10 billion settlement earlier this summer, had threatened...

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Keep Farm Credit System Focused on the Farm

07/08/14

Unless we return the Farm Credit System to its original mission, taxpayers could be on the hook for a bailout in the near future and farmersÂ' access to credit could be reduced, writes Rep. Marlin Stutzman.

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Consumer Overdraft Concerns Highlight Need for Reform

07/08/14

The CFPB should prohibit financial institutions from reordering transactions to maximize overdraft fees, require that fees be proportional to a bankÂ's costs to provide the loan and ban providers of prepaid cards from offering overdraft loans altogether, according to Susan Weinstock of The Pew Charitable Trusts.

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Morning Scan: Commerzbank in Regulatory Sights; Banks' Cost-Cutting Not Enough

07/08/14

Receiving Wide Coverage ...

U.S. Trains Sights on Commerzbank: U.S. regulators are accusing another European bank of violating U.S. economic sanctions after striking an $8.9 billion deal with French lender BNP Paribas over the same charge last week. Germany's Commerzbank is on the hot seat for allegedly doing business with companies in Iran and Sudan, according to the New York Times. Because Germany owns 17% of Commerzbank, the Times wonders whether "settlement talks could inflame diplomatic...

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Small Banks Should Team Up to Fight Cyberattacks

07/07/14

Many small banks lack the resources to make necessary investments in cybersecurity. One solution could be to institute regional centers that would allow banks to pool resources, train staff and investigate potential breaches.

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Rigid Credit Score Standards Hold Back Housing Recovery

07/07/14

Regulatory requirements that bar homeowners with imperfect credit scores from receiving a mortgage are hurting minorities and the economy as a whole.

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Fair-Lending Ruling Means Pricier Loans for Consumers

07/07/14

A disparate-impact ruling against a small Texas bank was supposed to lower the cost of small-dollar loans for Hispanic borrowers, but it has instead had the opposite effect, writes Attorney Peter Weinstock.

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