Best of American Banker's Regulatory Symposium

Dubbed the "speech of the week" by the Wall Street Journal's editorial page, Tom Hoenig surprised his audience by urging regulators to scrap Basel III. The FDIC board member and former Kansas City Fed Chief said Basel III was too complex to work and warned that big banks will be able to "game the system."

Why You Should Care: Hoenig has a vote on Basel III and could be FDIC chairman if Mitt Romney wins the presidency. This speech may end up being a game-changer.

Related Article: Basel III Should Be Scrapped, Hoenig Says

(Image: Ed Violette)
Rep. Scott Garrett offered a sharp rebuke of recent Federal Reserve Board moves, calling for the central bank to lose its authority to supervise banks and have its emergency lending powers further curtailed.

Why You Should Care: The New Jersey Republican is a leading candidate to become House Financial Services Committee chairman next year.

Related Article: Garrett Pushes Stripping Fed's Bank Supervisory Power

(Image: Ed Violette)
Acting FDIC Chairman Marty Gruenberg announced that the agency is taking steps to improve the relationship between bankers and their examiners.

Why You Should Care: Many bankers chief complaint these days isn't the horde of new rules coming their way - it's overzealous examiners.

Related Article: FDIC Tries to Bridge Divide Between Bankers, Examiners

(Image: Bloomberg News)
Jim Rohr, the chief executive of PNC Financial Services, delivered a blunt but critical message at the symposium: Banks need to do a better job of serving their customers.

Why You Should Care: During his remarks, Rohr made it clear the focus shouldn't be on repealing Dodd-Frank or hoping from help from Washington, but just focusing on what you can control.

Related Article: PNC Chief Says Banks Can Move Forward by Sticking to Basics

(Image: Ed Violette)
A panel of experts warned that if Basel III were not changed, community banks will disappear.

Why You Should Care: Predictions don't get any more dire than this and the panelists know what they are talking about.

Related Article: Change Basel III or More Small Banks Will Vanish: AB Panel

Pictured: Frank Sorrentino

(Image: Ed Violette)
For those complaining about the cost of Dodd-Frank, Treasury Undersecretary for Domestic Finance Mary Miller issued a stark reminder: Another crisis would be worse.

Why You Should Care: While observers want simpler rules, Miller noted "simplicity is not always synonymous with smart."

Related Article: Undoing Dodd-Frank Could Spark New Crisis: Treasury's Miller

(Image: Bloomberg News)
Regulators need to re-examine how they classify deposits or more banks could be classified as troubled.

Why You Should Care: With the TAG program about to end, more banks may be in jeopardy if regulators don't make other changes.

Related Article: Will the End of TAG Mean a Spike in Troubled Banks?

Pictured: Josh Siegel
Andrew Sandler of BuckleySandler clashed with the Justice Department's Steve Rosenbaum (left) over the recent settlement between a California lender and DOJ over fair-lending allegations.

Why You Should Care: Sandler sees the settlement as one of the most egregious yet-and a sign of serious overreach by the government.

Related Article: Bank, Justice Department Lawyers Clash Over Fair-Lending Action

(Image: Ed Violette)

Just about every major challenge facing bankers was referenced in American Banker's second Regulatory Symposium, including Basel III, the Volcker Rule, and new CFPB rules. Speakers, including the two top leaders at the FDIC, PNC's Jim Rohr, Rep. Scott Garrett and the Treasury Department's Mary Miller, weighed in with meaty remarks.

Following is a list of the top stories from the conference:

 

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