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document folder with the label regulations
On a Government Accountability Office report that found regulation has had a "generally modest effect" on the banking industry:

"You don't need a 173 page report to understand the overwhelming regulatory burden of the past decade - you just need common sense. ATR/QM, TRID, Mortgage Servicing Rules, MLO Compensation, HMDA, and on, and on, and on. Any one of these was overwhelming to a community bank, let alone all of them."

Related: Small banks seethe at GAO’s downplaying of reg burden
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On an op-ed from Comptroller of the Currency Joseph Otting arguing that accepting fintech charters will be good for the banking system and the public:

'If you give them a charter, regulate them just like a bank. Call them whatever you want just make sure they are subject to the same 'protective measures' as banks."

Related: OCC’s Otting: Why do state regulators want to limit consumer choice?
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Two people playing tug of war
Another reader weighs in on Otting's defense of the fintech charter process:

"While it's heartwarming to hear the Comptroller praise the dual banking system, the reality is the OCC has in the past frequently flexed its preemptive authority to stifle the state system. This smacks of yet another power grab by a federal agency at a time when the imbalance between state and federal authority is already badly imbalanced. Remember how the OCC responded to early state efforts to rein in the mortgage industry?"

Related: OCC’s Otting: Why do state regulators want to limit consumer choice?
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US congress building in Washington DC, with blue sky
On an argument that credit unions should be required to pay corporate income taxes:

"We have over $2 billion reasons, and growing, why the credit union tax loophole needs to end. This isn't just bad for banking, it's bad for everyday citizens; therefore it's bad for America. OK Congress, it's time to do the right thing; repeal this Grand Canyon of tax loopholes!"

Related: End the free ride for tax-exempt credit unions
Competitive edge, balloons, hot air
Competitive edge and business advantage concept as a group of hot air balloons racing to the top but an individualleader with a small balloon attached giving the winning competitor an extra boost to win the competition.
Another reader responds to an the argument that credit unions should not longer be allowed to avoid certain taxes:

"Will taxing credit unions make community banks more competitive? They have, what, 6% or 7% market share? Most are under $50 million in assets. Whom will we blame if credit unions lose their tax exemption?"

Related: End the free ride for tax-exempt credit unions
Mick Mulvaney, director of OMB and acting CFPB director
Mick Mulvaney, director of the Office of Management and Budget (OMB), listens during a press briefing at the White House in Washington, D.C., U.S., on Friday, Jan. 19, 2018. Federal government funding runs out at midnight Friday. Legislation to extend the deadline passed the House on Thursday and is set for a showdown in the Senate Friday, in which Democrats are poised to block the bill. Photographer: Andrew Harrer/Bloomberg
On news that the Consumer Financial Protection Bureau has filed a lawsuit against a pension advance company for alleged deceptive marketing tactics:

"Another example of state regulators asleep at the wheel? I’m not a fan of the CFPB but is everyone standing around waiting for them to take actiion?"

Related: CFPB sues Calif. pension advance firm targeted by state AGs
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Banking machine with out of service sign on screen
On an analysis exploring why banks struggle so much with tech outages:

"I laugh every time I see blanket statements made that blame old code/old technology on outages and other availability issues. New technology and new code is not the panacea for these issues. In fact, pushing new code and new technology are actually a catalyst for issues. The more you change things, the more issues you will have; and the larger the change, the greater the risk of having issues. New systems are frequently more complex and the teams lack experience with them."

Related: Why those high-profile bank glitches just won't stop
Mark Olson, former Federal Reserve governor and president of the American Bankers Association.
Mark Olson, who had a long career in banking including running a Minnesota bank founded by his father, serving as president of the American Bankers Association, and sitting on the Federal Reserve Board of Governors, died Sept. 12, 2018.
On the death of former regulator and community banker Mark Olson:

"'This guy was the voice for doing it right, for treating customers well, for ethical business practices and for always remembering the critical role financial services have played in our country,' Sandler said Friday. I agree with that, too. And I would add, that I have always found Mark to be a very wise man, particularly when it comes to considering financial policy."

Related: Mark Olson served as Fed governor, PCAOB chair, community banker in 50-year career
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A man films the exterior of the Federal Deposit Insurance Corp. headquarters in Washington, D.C., U.S., on Tuesday, Sept. 29, 2009. The FDIC, seeking to replenish deposit reserves as banks fail at the fastest pace in 17 years, today voted to unanimously to have lenders prepay fees through 2012 raising about $45 billion. Photographer: Andrew Harrer/Bloomberg
Another reader weighs in on the passing of Mark Olson:

"I am terribly sorry to learn of the death of Mark Olson. I had the opportunity to get to know Mark as a fellow regulator during my time on the Board of the FDIC. He was a terrific individual personally and professionally. My sincere condolences to his family."

Related: Mark Olson served as Fed governor, PCAOB chair, community banker in 50-year career
Victoria Finkle
BankThink Editor , American Banker
Financial regulations Credit unions Fintech regulations Fintech Infrastructure
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