BankThink

Who Should Run the CFPB if Cordray Leaves?

02/05/13

A recent court ruling has put CFPB Director Richard Cordray's job in jeopardy. But who should run the bureau if he has to step down?

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Do Your Branches Drain or Recharge Relationships?

02/05/13

Improving the branch experience could fail to increase foot traffic, but will boost customer satisfaction, loyalty and, ideally, advocacy.

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U.S. Sues S&P; More Bad News from UBS, Barclays; Debate Over Mary Jo White Continues

02/05/13

Receiving Wide Coverage ...

Charges Filed: The Justice Department is suing credit rating agency Standard & Poor's for allegedly ignoring their own standards and rating mortgage investments much higher than they should have been in years leading up to the financial crisis. Per the suit, filed by U.S. Attorney General Eric Holder: S&P "falsely represented that its credit ratings of RMBS and CDO tranches were objective, independent, uninfluenced by any conflicts of interest that might compromise...

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Merchants Can Charge Checkout Fees Without Alienating Shoppers

02/05/13

Local merchants, especially those with credit card minimums, may find a small surcharge improves customer service. Alternately, all retailers should consider product level surcharging, with fees only for high cost cards.

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Constitution Aside, CFPB Appointment Violated Dodd-Frank

02/04/13

Language in the act clearly stipulates the Senate be involved in appointing the Consumer Financial Protection Agency's director. Recess appointments, whether unconstitutional or not, are impermissible.

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Best Substitute for TAG May Be Product Many Banks Wrote Off

02/04/13

Dodd-Frank repealed the ban on paying interest on business checking accounts. No longer necessary to circumvent that restriction, sweep accounts with overnight repos can still protect and retain high-balance depositors.

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How To Compete Against the Oligopolies

02/04/13

Identify the megabanks' overpriced products and services, the customers they can't or won't serve. Use outside infrastructure to adapt quickly. B of A, Citi and other financial-services oligopolists are highly vulnerable to competition.

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Fair Value Still Requires Judgment

02/04/13

Despite new standards, firms must be aware of how much often subjective judgment goes into mark-to-market accounting, particularly for non-standard financial products.

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U.K. Regulators Vow to Break up Big Banks that Break Their Rules; 2 Barclays' Execs Step Down; New Citi Exec Steps In

02/04/13

Receiving Wide Coverage ...

The Electric Ring Fence: Would the threat of a break up keep big banks from violating the law? U.K. regulators appear to believe so as they are set to announce new powers today that will give them the authority to break up banks that flout ring-fencing rules in their Banking Reform Bill. "In America and elsewhere, banks found ways to undermine and get around the rules," U.K. Treasury chief George Osborne is...

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Nothing to Gain, Much to Lose, from Breaking Up Big Banks

02/01/13

Safety and soundness in banking will be found more in changes in oversight than regulation.

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