Today's harsh regulatory environment is sapping community banks of the time, money and staffers they previously dedicated to financial literacy efforts.
Banks should view the recent influx of regulations on small-dollar credit loans as a chance to develop products that are at once profitable and safe for consumers.
In his account of the financial crisis, former Treasury Secretary and New York Fed President Tim Geithner offers a full-throated defense of his fight to bail out Washington Mutual's bondholders and protect Citigroup's bid to take over Wachovia.
Mutual funds pose no threat to the stability of the financial system. Yet regulators appear determined to designate them as systemically important financial institutions-a move that could hurt millions of Americans who depend on the funds as retirement savings vehicles.
No company should be designated as a systemically important financial institution before the Financial Stability Oversight Council knows what "more stringent" prudential standards the Federal Reserve will apply to it.
Higher regulatory and compliance costs may push more small banks to sell themselves or merge with larger institutions. But so far, community bank consolidation rates are following historical patterns.
Collateralized loan obligations outperformed in the crisis. If regulators can exempt a vast swath of mortgages from risk-retention requirements, surely they can do the same for senior, secured corporate loans.
Big banks' alleged manipulation of Libor may have been unethical, but the FDIC faces long odds in proving that their actions caused community banks to fail.
General Motors CEO Mary Barra has been out front and center during the auto manufacturer's massive recalls this year. Most bank chiefs appear less willing to be the public face of a disaster Â-- with the notable exception of HSBC USA's Irene Dorner.
