In an era of increasingly complex financial products, banks should focus more attention on how to explain to consumers what's in their wallets, especially given the sorry state of most disclosure forms.
Why does HARP 2.0 continue the incrementalism that marred the first incarnation of the refi program and many of the housing policies the president has put forth?
The bank's plan to convert troubled loans to rentals will benefit all concerned. A special unit for servicing toxic assets can help, if run wisely. Principal reductions could seriously backfire.
Behind closed doors they live in a constant state of fear, ducking calls from bank and servicing representatives, opening certified letters with shaking hands.
Before moaning about unbanked consumers and their supposed lack of financial literacy, bankers, federal regulators, lawmakers might consider that there once was a product that targeted this situation.
For young businesses to succeed, they first need business management tools, networks and coaching. Only after they have these things are they ready to take out loans.
B of A seems to want to replace lost income and offset branch costs by imposing new account fees. Any increase would have the hardest impact on customers with limited capabilities.
They won't go cold turkey. Surprisingly, the more purchases consumers pay for with debit, the more cash they withdraw. Use ATM screens to get the word out about debit's benefits.
Durbin was a non-event. If reducing credit card interchange by 1%, roughly half, will wipe out free rewards, then it will cost banks nearly nothing. Definitely non-fatal.
