BankThink

Capital Spigot for Small Banks Is Too Tight

07/28/11

Market evolution in recent decades has made it harder and harder for smaller institutions to access capital. Meanwhile, regulatory restrictions impede alternatives that could fill the void.

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OCC Gets It Wrong on Preemption, Again

07/28/11

The agency's final rule contains glaring legal errors and whitewashes the role preemption played in enabling the lending excesses that precipitated the crisis.

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Military Heroes Deserve Better from the Mortgage Industry

07/28/11

If banks can track borrowers' interest rates and terms, how hard can it be for them to track which borrowers are serving in the military?

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The Scan for Thursday, July 28

07/28/11

Receiving Wide Coverage ... To Downgrade or Not to Downgrade... At a hearing on Capitol Hill the president of Standard & Poor's, Deven Sharma said that some newspapers have misreported his company's position on the U.S. debt crisis as having set a $4 trillion deficit reduction target in order for the country to preserve its triple-A credit rating. He said that some of the plans being considered that would reduce the U.S deficit by less than...

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The Scan for Wednesday, July 27

07/27/11

Wall Street Journal Squabbling over who should pay less has delayed a settlement between banks and 50 state attorneys general over the mortgage foreclosure mess, sources told the Journal. "The latest disagreement among banks is a contrast to the largely unified public stance taken by financial firms as they work to put the foreclosure woes behind them," the paper said. ...

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Durbin's Unintended Consequence for the Underbanked

07/26/11

In attempting to prevent abuses of the interchange cap exemption for reloadable prepaid cards, the Fed may have inadvertently scuttled an opportunity for banks to serve low-balance account holders.

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The Scan for Tuesday, July 26

07/26/11

Receiving Wide Coverage ... A Split Decision: Deutsche Bank said Anshu Jain, head of its investment bank, and Jürgen Fitschen, the German bank's head of regional management, will become co-CEOs of the bank next year when Josef Ackermann retires. One holdup, according to the Times, had been that Jain, a native of India who is not fluent in German, is regarded as not ready to assume the statesmanlike duties required of Deutsche Bank's chief. The Journal...

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The Scan for Monday, July 25

07/26/11

Receiving Wide Coverage ... Two Tales of A Nation: The deal on debt relief for Greece will remove uncertainty, helping prevent a loss of confidence in banks, said Charles Dallara, the managing director of the Institute of International Finance, the Times reported. Dallara was a negotiator for the deal. The Post reported that Moody's cut Greek debt three notches to Ca and warned that the nation will likely default before stabilizing. Wall Street Journal, Washington Post Wall...

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CFPB Will Help Keep Industry in Balance in Long Term

07/24/11

As we say in New York, the new agency is going to be a first-class "noodge" - pushing and cajoling the industry to simplify, clarify and and modify some of its practices.

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The Scan for Friday, July 22

07/22/11

Receiving Wide Coverage ... Contemplating Disaster: Regulators are giving banks scant guidance on how to deal with a possible government default or downgrade, the Journal reports this morning. The big banks "are spending hundreds of hours on contingency planning scenarios," the article says. But without certain answers, it's hard to plan. For instance, "Fed officials haven't said if their collateral requirements would change after a default, which would affect banks' ability to borrow from the central...

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