You've probably heard of the Office of Financial Research's database for tracking financial companies like barcodes. It's also tasked with building another system that's equally critical - and a much greater technical challenge.
Historically low interest rates and weak loan demand have masked the long-term profit potential of core deposits. When (not if) the cycle turns, community banks' earnings power will reappear.
Many borrowers with great credit can't get financing rates commensurate with their low risk. There's a major opportunity for banks to generate attractive returns by providing fairly priced student loans to these customers.
Much time and energy was spent on a campaign to regulate an optional service consumers could avoid paying for. Meanwhile, mortgage securitization was going gangbusters. Priorities were perhaps misplaced.
From the CFPB to the FSOC to New York's ban on large soda cups, followers of behavioral theory have gone overboard in their rabid enthusiasm for governmental manipulation.
The company's fixed network fee penalizes merchants that route debit transactions to any competing network, and subverts the competition that the Durbin amendment was designed to foster.
Also, it's OK just to make transactions easier and cheaper, even if consumers don't "graduate" to a bank account. And eight other lessons from the premier conference in this space.
Jamie Dimon never had it, actually. He assiduously avoided subprime consumer credit, leaving profitable business on the table, but JPMorgan's recent trading loss reveals lax management of much greater risks.
