BankThink

Checking account regulations are outdated even for their primary product. Why would you want to regulate prepaid cards with a set of archaic rules?

At a Credit Union National Association conference in Washington on Wednesday, Sen. Elizabeth Warren defended both the Consumer Financial Protection Bureau and its director Richard Cordray.

Receiving Wide Coverage ...More on JPMorgan Layoffs: According to a story in the Post, the more than 10,000 job cuts the bank announced this week speak volumes about JPMorgan's views on the housing market, good and bad. On the bright side, "foreclosures at the bank have tumbled … which is why most of the employees receiving pink slips are those that were hired to handle mortgage defaults." But JPMorgan is also cutting jobs in mortgage production, reflecting its view that "heightened competition" will nibble at the outsized margins it's been enjoying, the article says. (Where's that competition going to come from in such a concentrated origination market, you ask? Some argue there'll be room for upstarts after the refis fade.) The FT's "Lex" column notes that no cuts were announced in investment banking, and suggests that the downsizing of JPMorgan is a case of "cyclical staffing adjustments," not "structural change." Also, Rolling Stone's Matt Taibbi has a more-NSFW-than-usual interpretation of JPMorgan CEO Jamie Dimon's testy exchange with analyst Mike Mayo at the recent investor day. Reader discretion strongly advised before clicking. We're including it because Taibbi has influenced public perception of financial companies (see: Goldman Sachs), not for the yuks — but don't say we didn't warn you.

If a customer connects to an open Wi-Fi network, fails to follow adequate Bluetooth communications protocol or uses shoddy passwords on smartphones, a bank's internal networks may be exposed to fraud.

Now, with an ATM that directly converts paper cash to bitcoin anonymously, the interaction is with a machine rather than another human. No more face-to-face meetings, no more counterparty risk.

The fact that the bulk of the relief from the national mortgage servicing settlement is going to short sales is a huge victory for the economy, consumer advocates' howls notwithstanding.

Receiving Wide Coverage ...Ease on Down the Road: Chairman Ben Bernanke defended the Fed's asset purchases and signaled they will continue until the job market firms up. He addressed concerns that by driving down interest rates for a long period of time, the Fed's easing encourages inappropriate risk-taking: While the central bank is cognizant of that danger, he said, low rates "also serve in some ways to reduce risk in the system, most importantly by encouraging firms to rely more on longer-term funding, and by reducing debt service costs for households and businesses." Wall Street Journal, Financial Times, New York Times, Washington Post

Directors can stay ahead of the curve by visiting the "factory floor," aligning compensation with compliance and requiring explanations when business management fails to self-identify issues.

Rep. Jeb Hensarling, the new chairman of the House Financial Services Committee, continued his criticism of the 2010 Dodd-Frank Act on Tuesday.

Small banks are concerned about the Consumer Financial Protection Bureau's enforcement potential over fair lending laws.