BankThink

Early Release of Consumer Sentiment Data to End

07/08/13

Receiving Wide Coverage ...

Trader Sneak Peek Ending: Thomson Reuters will suspend providing a select group of investors with advance results of an important consumer confidence survey from the University of Michigan. The financial information company pays the school more than $1 million a year for the privilege of being the exclusive distributor of the report and releases the data two seconds early to about a dozen clients, who pay a hefty fee. Legal experts claim...

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The Pitfalls of Heavy-Handed Leadership; Last Call for Summer Reads

07/05/13

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

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Central Banks' Low-Rate Bonanza; Libor Trial Update; HSBC Exits South Korean Retail

07/05/13

Receiving Wide Coverage ...

Low-Rate Bonanza: Breaking with tradition, both the European Central Bank and the Bank of England (separately) pledged to keep interest rates low indefinitely. The forward guidance "underscored the stakes as officials around the world try to safeguard fragile economies as financial markets swing wildly," reports the Journal. Per the FT, ECB President Mario Draghi said the timing of the two announcements, tied to meetings held by both central banks, was coincidental. He...

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The Most Dangerous Rule for Foreign Banks: Volcker

07/05/13

Foreign banking organizations will need to create massive compliance and reporting systems to handle the Volcker Rule, even if the vast majority of their dealings are done outside its scope.

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A Consumer's Credit Score Is a Consumer's Responsibility

07/03/13

The industry doesn't need to invest millions in further education and legislation. The road to a good credit score is pretty straightforward.

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Basel Approval Draws New Battle Lines; Big Deal in Asia

07/03/13

Receiving Wide Coverage ... We've Only Just Begun: The Federal Reserve's approval of the Basel capital rules for U.S. banks drew the most attention from the major dailies. The upshot of the coverage is that the rules generally turned out as expected, though small and midsize institutions dodged some bullets. Perhaps most importantly, major fights lie ahead for big banks over several additional rules in the works — such as efforts to toughen the leverage ratio. …

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Heavy-Handed Leadership Style Stifles Big Banks

07/03/13

No one is going to put a hand up with a radical new business model or push back on dangerous suggestions if they fear ridicule – or worse.

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Want to End Banking's Bad Rep? Charge a Fair Price for Better Products

07/02/13

Companies that create goods or enhance existing services are seen as innovative and responsive. Businesses that impose fees without adding value often wind up paying a reputational price.

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Citi Settles with Fannie; Winklevoss Twins File for Bitcoin IPO

07/02/13

Receiving Wide Coverage ... Citi Settles: Citigroup has agreed to pay $968 million to settle claims it sold bad mortgages to Fannie Mae. Analysts tell the Wall Street Journal Citi may settle with Freddie Mac over similar charges as well, though official spokesmen for both parties are declining to comment. Citi did say that the settlement charges would be covered by its existing mortgage repurchase reserves. The bank plans to add $245 million to this reserve…

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Examiners' Growing Misuse of 'Reputation Risk'

07/02/13

Regulators are challenging banks’ relationships with disfavored businesses, citing the endlessly adaptable concept of reputation risk rather than law or regulation.

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