BankThink

If they get on their high horse, bankers risk coming off as disingenuous. Concentrate instead on developing products that will help consumers meet a specific financial goal.

American Banker Magazine Editor in Chief Heather Landy responds to the charges and examines the possible evidence of her own unconscious bias.

Accounting rules require banks to drain reserves when loan losses are low and build them up when problems abound, amplifying booms and busts. Allowing a long-run view of losses in setting reserves would improve financial stability.

Receiving Wide Coverage ...QE3 Surprise: In a departure from recent statements, Federal Open Market Committee indicated a willingness to step up bond purchases. Previously the Fed had hinted only that it might reduce monthly purchases. Now the official line is they could go up or down, depending on inflation and job growth. The upshot of all this Kremlinology: The shift to a neutral stance means the economy is still pretty weak. Wall Street Journal, Financial Times

Sen. Tim Johnson, chairman of the Senate Banking Committee, and Rep. Jeb Hensarling, chairman of the House Financial Services Committee, have remained mum over the renewed push to end "too big to fail", which has garnered attention recently from prominent lawmakers, regulators and pundits.

We must help carry forward the traditions of relationship banking while stressing the importance of technology adaptation and modern leadership.

When we create cultures in which higher-ranking managers become insulated from ever facing a "yes" or "no" from a customer, our leaders lose a little perspective.

Breaking News This Morning ...Obama Said to Pick Mel Watt to Run FHFA: Watt, a Democratic congressman from North Carolina, would be the agency's first official director since 2009. Ed DeMarco has toiled as the acting director since then, and his policies have been unpopular with the administration, Democrats, and housing and consumer advocates. A formal announcement is expected today, various anonymice told their preferred media outlets. Bloomberg, Huffington Post, Politico

In an effort to lift compliance burdens on small banks, the Consumer Financial Protection Bureau revised its final rule on international money transfers.

The debate over whether commercial firms should be allowed to own a bank may be renewed as Dodd-Frank's retailer bank ban is due to expire in July.