BankThink

Bankers, Beware Tax Policy Changes in Fiscal Cliff Deal

12/12/12

Tax incentives and penalties drive behavior regardless of whether or not they represent sound economic reality. And banks will be asked to provide lending and investment support accordingly.

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CFPB Should Leave Enforcement Lawyers Out of Bank Exams

12/12/12

While some may suggest the practice is warranted so agency attorneys can address deficiencies hurting consumers, ultimately everyone loses when opportunities for frank discussion are lost.

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A Prosecution Deferred; MIT's Future New-Keynesian Central Bankers Club

12/12/12

Receiving Wide Coverage ...

HSBC Settlement Redux: Wednesday was the tail end of the HSBC money laundering news cycle, with major papers scrutinizing the bank's $1.9 billion deferred prosecution agreement with the U.S. According to the 21 law enforcement officials, the bank's misconduct was egregious, sustained, and possibly willful. (Either that or nobody noticed when people started regularly showing up at Mexican HSBC branches with boxes of cash that fit precisely through the holes in the...

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For Industry's Sake, Banks and Regulators Better Start Communicating

12/11/12

Regulators need to create an environment where firms are not afraid to speak out. Banks need to come up with clearer explanations of their business models to prevent the creation of unnecessary rules.

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Boardroom Diversity Is Good Corporate Governance

12/11/12

Ensuring that corporate boards include a diverse set of skills, backgrounds and personalities helps against groupthink's dislocation of corporate and shareholder interests.

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Laundry Bill Totals $2.6 Billion for HSBC and Standard Chartered

12/11/12

Receiving Wide Coverage ...

Laundry Bills: The whispers were out there last week, now it's official: HSBC has admitted it ignored signs of money laundering for years and agreed to pay a record $1.9 billion in a settlement with U.S. authorities. (Wall Street Journal, Financial Times, New York Times.) Fellow British bank Standard Chartered agreed to a $327 million settlement for violating U.S. sanctions against Iran, Libya and other nations (Journal, New York Times), bringing its...

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The Cult of 'Innovation' Can Be Hazardous to Your Bank

12/11/12

Innovations can fail catastrophically, as was the case for the mortgage and securitization innovations that precipitated the crisis. Valuable innovation profitably and honestly delivers greater perceived value to customers, without incurring disproportionate cost and risk.

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Obama's Tech Czar May Be Good for Banking

12/10/12

Todd Park is hardly a civil service Yes man. He's a presidential scholar with a Harvard degree and two successful start-ups under his belt.

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Banking's Fiscal Cliff: Five Reasons to Extend TAG

12/10/12

Congressional approval for a two-year extension would, among other things, prevent more uncertainty, minimize deposit concentration and maximize financial stability.

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How CFPB Can Turn Restrictive Mortgage Rule into a Win for All

12/10/12

With the help of technology and the FHFA, the CFPB can create Dynamic Disclosures for consumers. Better information will put borrowers on an equal footing with lenders, making non-Qualified Mortgage loans safer to originate.

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