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American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and from our social media platforms.

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On the need for banks to deal with new regulations by deepening their investment in talented compliance employees:

"The real competitive edge should be derived from the best and brightest staff, and not from the most ethically challenged sharks found in the tank."

Related Article: The Volcker Rule Has a People Problem

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On Fannie Mae and Freddie Mac's ability to maintain their current financial performance:

"Given current trends in the mortgage sector, it is questionable whether the [government-sponsored enterprises] will remain nominally profitable as lending and loan sales volumes trend below $1 trillion annually in 2015. The GSEs and [too big to fail] banks are already fighting over the dwindling supply of new loans in a scene taken right out of 'Jurassic Park.'"

Related Article: The Other Fannie and Freddie Lawsuit

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On whether Wal-Mart's partnership with GoBank poses a threat to the retailer's in-store banks:

"Don't kid yourselves. When WalMart adds another brand of laundry detergent, it eats into the sales of the other brands. While the GoBank product is limited, WalMart will promote it and it will impact the business of their in-store banks."

Related Article: Will Wal-Mart Checking Siphon Customers from In-Store Banks?

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On why in-store banks may be in a better position to compete with GoBank than the rest of the industry:

"Why do you think that GoBank is more of a threat to in-store branches than traditionals? In-stores tend to attract customers who want regular, hands-on access. Many also attract customers who choose to incur overdrafts that they willingly pay for. Both of those traits are explicitly missing in GoBank. And if you pay close attention, most of the in-store branches offer checking products priced as low or lower than GoBank -- Walmart is taking on the banking industry, not in-store branches."

Related Article: Will Wal-Mart Checking Siphon Customers from In-Store Banks?

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On an FDIC report that shows smaller community banks lost deposits and branches over the past year:

"It is not surprising that community banks less than $300 million [in assets] are struggling given the huge regulatory burdens they face [and] compressed margins across all product sectors -- scale does matter."

Related Article: Winners, Losers and Draws in Race for Deposits

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On the argument that the bankruptcy code is unduly harsh on student loan borrowers:

"The judge may be correct that the differential treatment is hard to justify. But with the U.S. savings rate hovering chronically around zero and the central government sure to default explicitly or implicitly on its on- and off-balance sheet liabilities, maybe it is time to reconsider policies enabling and encouraging over-indebtedness?"

Related Article: Student Loan Debtors Need a Light at the End of the Tunnel

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On the difficulty of discharging student loan debt:

"I did a pro bono case in the late 1980s for a guy in his early 40s who took out a student loan a year earlier. He went to trucker school, graduated and got a job driving. Eventually he got a diagnosis of blindness in one eye and minimal vision in the other. I filed a petition for a hardship discharge for him. The government resisted, forcing me to get the case through pre-trial and then ready for trial. They said he could find some job somewhere doing something. They didn't relent until the day before trial. That is typical of what I saw in this area."

Related Article: Student Loan Debtors Need a Light at the End of the Tunnel

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On one bank's approach to notifying customers about data breaches:

"A personal call, not a message, is made to every cardholder advising them that their credit/debit card may have been compromised, that the bank has placed a flag on their account. In a few cases, the customer may continue to use their card but must use their pin number. [In] most cases the account is locked, with a new card sent immediately. We may be replacing cards that have not been compromised, but we are protecting our customer and the bank by this proactive approach."

Related Article: How Not to Handle a Data Breach

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On bankers' objections to a Basel III requirement for stable longer-term funding:

"Banks will always say everything increases their funding [costs]. Please make them prove how. The [net stable funding ratio] is an important complement to the [liquidity coverage ratio]. What is critical is for banks to change their funding models. They should live in the real world like other sectors of the economy, so that taxpayers do not have to bail them out."

Related Article: What Basel's Other Liquidity Ratio Means for Banks

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