Because of the Durbin amendment, the once-prized asset has become an albatross. Spinning it off will remove a distraction and let management refocus on business banking.
The Federal Savings Bank has been under a spotlight since it was revealed that it provided $16 million in mortgages to onetime Trump campaign manager Paul Manafort.
The Federal Reserve's decision to allow the Territorial Bank of American Samoa access to the U.S. payment system creates only the second public bank in the country, and may pave the way for others in California, New Jersey and elsewhere.
Many banks talk about the need to replace legacy core systems, but relatively few go through with it. The CEO of Mechanics Cooperative Bank in Massachusetts explains the case he made to his board that the promise outweighed the risk.
