BankThink

Dearth of Start-Up Banks Is an Unsettling Indicator

06/25/12

We'll know that the banking industry has returned to full health when we see a significant number of new charters. We're not there yet.

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Rating Agencies Remain a Weak Link in the Financial System

06/25/12

Looking back on last summer provides some perspective. What's worse: a $2 billion nick to one bank's profits, or a massive computational error leading to the unprecedented downgrade of the world's most powerful economic force?

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Ratings Cuts Are Latest Symptom of a Bigger Problem

06/22/12

Major banks used to thrive by arbitraging reality. As Moody's downgrades show, those opportunities are continuing to diminish.

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Replace Fee Income with Free Checking. Really

06/22/12

Instead of raising revenue by adding new fees, why not focus on raising revenue by creating real, tangible incentives for customers to do more of their financial business with one institution?

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Small-Dollar Loan Pilot Produced Valuable Insights, Profits

06/21/12

We at the FDIC continue to believe the small-dollar loan model is replicable and that these loans can be cost-effective and responsive to the needs of both consumers and bankers.

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Rebuild Consumer Trust by Offering a Fair Deal

06/21/12

Banks are entitled to a profit. Customers are entitled to value for their money. Financial products can be designed, marketed and priced to satisfy both parties' needs.

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Buck Up, the Future Is Bright for Community Banking

06/21/12

The risky practices at and implicit taxpayer guarantee for systemically dangerous megabanks are driving consumers to community-based banks.

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Is Financial Repression Leading America Down a Road to Ruin?

06/20/12

Kevin Mellyn's "Broken Markets" warns that state suppression of market forces could have lasting consequences. Bankers and policymakers should take heed.

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Neither Dimon Nor Senators Understand Banking 101

06/19/12

During last week's Senate Banking Committee hearing with JPMorgan Chase CEO Jamie Dimon, frequent reference was made to "risk," a word which was, and should still be, anathema in banking, for bankers do not take risks; they only underwrite risks.

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Why Congress Must Let TAG Expire: To Help Small Banks

06/19/12

Under TAG, the large banks' cost of funds advantage has grown tremendously, despite the promise that it would do the opposite - namely help smaller banks.

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