BankThink

Receiving Wide Coverage ...Hawks, Doves, Hogs, Turkeys: It hardly compares to 2008, but liquidity in the bond market is drying up fast as investors prepare for a world without stimulus. With recent economic trends punctuated by Federal Reserve Chairman Ben Bernanke's comments last Wednesday about the timetable for slowing the Fed's bond purchases, investors have pulled near-record amounts of cash from the bond markets in recent weeks, the Journal reports. Meanwhile, Dallas Fed President Richard Fisher tells the FT that the markets are full of feral hogs ("If they detect a weakness or a bad scent, they'll go after it") trying to pressure the Fed into reversing its thinking. Fisher, known for having some of the more hawkish views among Fed officials, says that while it "made sense to socialize the idea that quantitative easing is not a one-way street," he did not want "to go from Wild Turkey to 'cold turkey' overnight." The Times, meanwhile, notes that the slow sell-off in bonds that market strategists had been predicting for years quickly turned into an all-out stampede, the force of which has spilled into the stock markets and into exchange-traded funds that hold bonds. "We don't think we've seen the capitulation we need to hit bottom yet," TF Market Advisors' Peter Tchir tells the paper. And Dealbook columnist Andrew Ross Sorkin asks whether the normally reserved Bernanke is now the man who said too much. But lest we accuse the Fed chief of engaging in some financial TMI, Sorkin himself notes it's possible the markets would have acted "even more erratically" if Bernanke's communication style had been any less straightforward.

Recapitalizing Fannie and Freddie while making sure they behave well is a path with far fewer risks of missteps and potential damage to the economy.

The Supreme Court announced Monday it would hear a case that calls into question President Obama's recess appointments to the National Labor Relations Board.

The House and Senate banking panels are holding several hearings this week, including Consumer Financial Protection Bureau officials discussing the private student loan market and a planned look at "too big to fail" regulations.

The FTC's move to hold payment processors responsible for the deeds of unscrupulous merchants could result in higher prices or less choices for small businesses and consumers.

There’s no magic potion for providing low-income people with low-cost financial services. But the combination of technology, ingenuity and the capitalist incentive has solved many problems before.

Provide them with a basic understanding of the banking system, share your firm’s strategic vision and encourage communication between departments and affiliates.

At the CU-sponsored Cherry Blossom Run in Washington this spring, Janet Bawcom set a new U.S. record in the 10-mile. Meanwhile, in the same week during the World Ice Cream Eating Contest sponsored by Magnify Credit Union in Florida, Joey Chestnut set a new world record by knocking off almost 1.5 gallons of vanilla ice cream in six minutes. Incredibly, Mr. Chestnut looks like he could run in the Cherry Blossom event and no one would think him out of place.

Michael Detwiler, CEO of Mortgage Cadence LLC, explains why not to apply QM and QRM rules to community bank lenders.

More equity would enable banks to absorb more losses without becoming distressed or needing taxpayer support. Long-term debt is a poor substitute, particularly for the largest banks.