BankThink

It's Time to Kill CAMELS

06/03/13

The United States needs a new, 21st century model for identifying, monitoring and reporting risk at banks. The model must be forward-looking, not backward-looking as the CAMELS ratings are.

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B of A, AIG Set to Square off Over Subprime Mortgage Settlement; UBS Target of French Tax Probe

06/03/13

Receiving Wide Coverage ...

AIG vs. B of A: The battle over Countrywide's bad mortgage-backed securities continues as the New York State Supreme Court is set to hear arguments on Monday over whether the $8.5 billion settlement Bank of America reached with investors over the soured investments should be approved. Insurer AIG is leading opposition to the settlement, believing its sum should be much higher. The Journal calls the hearing "part of a broader battle ...

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Sympathy for Liberty Reserve; Regulatory Reform Reconsidered; Portents in Payments

05/31/13

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

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Google P-to-P Feature a Wake-Up Call for Banks

05/31/13

The threat posed by Google will put the onus on banks to deliver the ultimate person-to-person payments experience, which only they can provide.

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Mortgage Modification Deadline Extended; Costs Disclosures Sought

05/31/13

Receiving Wide Coverage ...

More Time for Mortgage Modifications: The Obama administration's announcement Thursday that it will extend the Making Home Affordable Program for another two years comes "despite signs of revival in housing," the Times notes. The program, which gives financial incentives to lenders to modify the loans of eligible borrowers, "did not come near to fulfilling the administration's promise of relief for several million homeowners," according to the publication. As of March 31, the...

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Goldman's TBTF Study Used Flawed Data to Reach Flawed Conclusions

05/30/13

Among other problems, Goldman never mentions that one big reason it survived and thrived is that the bailout of AIG enabled it to repay Goldman and other counterparties at par.

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How to Press Your Bank's Advantage in Small Business

05/30/13

Banks that develop strong, personalized relationships with small business owners will generate mutual sustained value.

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Sallie Mae's Split; Another Hole in Swiss Bank Secrecy; Money Laundering Miscellany

05/30/13

Receiving Wide Coverage ...

Sallie Mae to Split in Two: The FT emphasizes the growth prospects of the banking and private student loan business that will be separated from the legacy government-backed loan servicing operation. The Times plays up the context of rising student loan defaults and tightening regulatory scrutiny. The Journal plays it pretty straight. Wall Street Journal, Financial Times, New York Times ...

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Feds Wrongly Demonize Privacy in Liberty Reserve Case

05/30/13

Public officials talk as if facilitating anonymous financial transactions is in itself somehow nefarious. But there are legitimate reasons to keep online purchases and other activity private.

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New Bitcoin VC Fund Seeks Edge with Regulatory, Security Skills

05/29/13

The government actions against Liberty Reserve and Mt. Gox underscore the importance of regulatory expertise to digital currency startups. Hence Liberty City Ventures has retained former Treasury officials as advisors.

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