Slideshow

'Theater of the absurd': Comments of the week

April 11, 2019 10:00 PM

Readers respond to this week's big-bank CEO hearing before the House, weigh the debate over Community Reinvestment Act reform, consider whether Wells Fargo needs a new brand and more.

James Gorman, chief executive officer of Morgan Stanley, center, listens during a House Financial Services Committee hearing in Washington, D.C., U.S., on Wednesday, April 10, 2019. A decade after the financial crisis, the chiefs of the largest U.S. banks faced a grilling from lawmakers on everything from income inequality to their ties to politically controversial industries. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

On CEOs from seven of the eight largest U.S. banks testifying before the House Financial Services Committee:

"Watching the hearing was sickening. Rep. Waters and other Democrats do not have the demeanor of a public servant, but that of a ruler. I'd say it's shameful, too, but clearly she has no shame. She is also devoid of basic knowledge of the banking industry, e.g., asking if they still make student loans. Most simply replied no and when they discontinued that lending. At least Dimon told her JPM stopped in 2010 after the government takeover of student lending."

Related: Guns, CECL and 'too big to manage': Big-bank CEOs on Hill

Jamie Dimon, chief executive officer of JPMorgan Chase & Co., right, and Michael Corbat, chief executive officer of Citigroup Inc., are sworn into a House Financial Services Committee hearing in Washington, D.C., U.S., on Wednesday, April 10, 2019. The chief executives of some of the U.S.'s biggest banks should get ready for hostility as they're about to serve as political-theater targets at a House committee hearing, analysts say. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

Another reader responds to the big-bank hearing:

"Theater of the absurd."

Related: Guns, CECL and 'too big to manage': Big-bank CEOs on Hill

On California considering a process for municipalities to create public banks, despite a similar ballot initiative recently failing in Los Angeles:

"A public bank measure in Los Angeles failed because the voters realized there's never a good time for the government to run a bank."

Related: A path forward for public banks?

President Trump's announcement of Paris Agreement withdrawal

U.S. President Donald Trump speaks during an announcement in the Rose Garden of the White House in Washington, D.C., U.S., on Thursday, June 1, 2017. Trump announced the U.S. would withdraw from the Paris climate pact and that he will seek to renegotiate the international agreement in a way that treats American workers better. Photographer: T.J. Kirkpatrick/Bloomberg

T.J. Kirkpatrick/Bloomberg

On an op-ed by the California Reinvestment Coalition arguing that the Trump administration is trying to silence outside groups from critiquing efforts to reform the Community Reinvestment Act:

"Enough with the redlining, unjust foreclosures and mom and pop businesses unfairly denied access to credit narrative. Changes to how the regulators assess CRA performance are long overdue and unfortunately, will likely affect the CRC's ability to pole vault in and hold a bank hostage."

Related: Why is OCC scared of public input?

Andrew Harrer

On Jamie Dimon's annual letter to shareholders detailing his thinking on economic policy, the state of the banking industry and more:

"Bank CEO's are uniquely qualified to comment on economic and financial issues but most are afraid to do it, much less comment on social issues. They fear offending customers, investors and politicians. Jamie Dimon has been uniquely unafraid to swim in these waters. I'd like to see more banking leaders join the fray."

Related: A 'Marshall Plan for America': Takeaways from Jamie Dimon's shareholder letter

Man working on a project using futuristic digital tablet

Kirill - stock.adobe.com

On an Oklahoma lender's efforts to create a digital-only institution called Gateway First Bank:

"Best of luck. It's tough out there and this won't be the first or last time someone's tried to leverage a digital bank to make loans and gather deposits. As the article points out, a lot of hurdles make this an effort that will require patience, capital and luck."

Related: Mortgage lender poised to begin digital bank experiment

A customer exits a Wells Fargo & Co. bank branch in Los Angeles, California, U.S., on Thursday, April 19, 2018. Wells Fargo & Co.'s financial ties to gunmakers and the National Rifle Association have prompted the American Federation of Teachers to remove the bank from its list of recommended mortgage lenders. Photographer: Patrick T. Fallon/Bloomberg

Patrick T. Fallon/Bloomberg

On an argument that it's time for Wells Fargo to rebrand, much like First Union did with its purchase of Wachovia in 2001:

"The thing that was inspiring about the merger of Wachovia and FU was both management teams had a sense of a new direction due to leadership. I managed the deposit transition for customers and I was empowered to do things that had never been considered before like eliminating lots of arduous fees from FU even though it cost revenue as an example. And the reason was Ken Thompson and his dedication to customer service as the cornerstone to our brand positioning."

Related: Time to rebrand Wells Fargo

Another reader responds to an argument that Wells Fargo should take major steps to clean up its image:

"I've been a Wells customer since they acquired Wachovia. Personally, I couldn't care less about the 'scandals' since the handling of my own account has never been an issue. It'd be great if the politicians and the media hacks would just leave Wells alone. 99% of the time, for most people, everything is fine and everyone is happy. But 1% of the time, there's an issue, and the media inevitably highlights that to make it appear as if everything has gone to hell in a handbasket."

Related: Time to rebrand Wells Fargo