BankThink

Doomsayers conveniently forget that the business case for introducing debit cards was one of cost avoidance for the banks, not revenue.

The Fed is prepping a proposal to toughen Regulation W, which governs how a bank does business with its subsidiaries and affiliates.

Doomsayers conveniently forget that the business case for introducing debit cards was one of cost avoidance for the banks, not revenue.

Banks can still use properly tailored arbitration provisions to cut off class actions. Provisions should be explicit; silence is not a bank's friend when it comes to arbitration agreements.

Receiving Wide Coverage ...Downsizing: Bank of America is selling its stake in China Construction Bank for up to $1.5 billion, reports the Journal, which obtained a term sheet on the deal. The bank has yet to comment on the reason for the sale, but the article notes "market experts remain wary about Chinese banks' asset quality after a huge credit boom in China aimed at stimulating the country's economy in the last few years." Bank of America isn't the only big bank scaling back. The Journal also reports that last week Citigroup sold Citi Venture Capital International, a $4.3 billion private-equity fund, for an undisclosed price to private-equity fund Rohatyn Group. The paper estimates Citi has shed more than $6 billion in alternative investments over the last month and anonymice say the big bank is also looking to sell its remaining hedge fund to those that manage it. "The moves reflect a decision by Citigroup to shed its private-equity and hedge funds in the wake of new regulations that restrict banks' holdings of alternative investments," the paper reports before name-dropping the yet-to-be-finalized Volcker Rule, which, among other things, prohibits banks from investing in funds they don't manage.

There are several keys to a credit union's effective loan administration, but here are three to consider as you review your existing loan administration system.

How can credit unions ensure that embracing Facebook, LinkedIn and Twitter won't result in a social scandal? The biggest threat to the use of social media by credit unions is, quite frankly, not to use it all.

I've seen people shamelessly filling their conference bags with trade show loot. I've seen just about anything that could be deep fried and attached to a stick served up as hors d'oeuvres. But I've never seen a man work a trade show in his boxer shots. Until now.

President Calvin Coolidge once said "The nation which forgets its defenders will itself be forgotten." We can never, ever forget those who served to protect what we have in this great country. Defense credit unions have not and never will.

I agree with Jerry Cross, CEO of One Credit Union: New NCUA examiners should spend some part of their training working inside a credit union.