BankThink

The state is receiving a notably large share of national mortgage settlement benefits because of the level of harm the state sustained during our nation's mortgage crisis.

Stress testing is far from a fail-safe, but does increase a bank's resilience to economic shocks.

Receiving Wide Coverage ...Submissive on Pay: The Treasury Department failed to rein in outsize executive pay at some of the biggest bailed-out companies last year, according to a report published Monday by the special inspector general of the Troubled Asset Relief Program. Treasury officials awarded 63% of the 25 highest-paid employees at Ally Financial, AIG and General Motors total pay packages in 2012 that topped the median pay for executives at similar companies by more than $37 million. The Journal observes that Treasury previously rejected the watchdog's criticism and declined to institute policy changes on pay, "a sign the report might not crimp the future pay packages of GM and Ally Financial executives." The Treasury recently sold its remaining shares in AIG, so the company no longer has to submit its pay packages for approval. The Times echoes the point, noting that a report by the inspector general in 2012 "made similar criticisms." The Washington Post also picks up the thread, noting that Monday's report evaluates Treasury's actions since last year "with stinging allegations of lax oversight and supervision."

As loan-loss reserves normalize, the earnings benefit from lower provision expenses will abate and earnings will be squeezed. M&A should emerge as an attractive strategy to maintain earnings and generate growth.

Research may fail to prove the Community Reinvestment Act contributed to the subprime housing crisis. But its supporters also can’t prove that it didn't.

"Despite delays and protests, compliance with myriad Dodd-Frank and Basel III rules will likely accelerate in the coming year - particularly those around mandated stress tests requiring banks to demonstrate protection from adverse economic pressures," writes American Banker's John Adams.

Yes, an effective sales organization awakens customers to newly perceived needs. But it also markets the products that yield the highest return—not necessarily the ones customers would most want to buy.

Receiving Wide Coverage ...Advice for Mary Jo White: "Making Them Pay (and Confess)" is what the Times' Gretchen Morgenson would like to see from White, President Obama's nominee to head the SEC. In other words, the columnist wants White to kick the SEC's habit of allowing companies to settle charges by paying fines without admitting fault. The Post notes that the agency lacks some of the awesome powers of White's former employer, the Department of Justice. The SEC can't brandish threats of jail time, wiretaps, search warrants, undercover operations or grand jury probes. But it has other strong enforcement tools at its disposal, such as issuing damning reports on individuals and barring them from serving as corporate directors and officers. "Even if White wanted to devote all her energies to enforcement, there will be other and perhaps more pressing regulatory matters before the agency, including putting in place the sweeping regulations heaped on the agency by the Dodd-Frank Act," the article says. It also notes that unlike at the U.S. attorney's office in Manhattan, White will be overseeing unionized attorneys and answering to a five-person commission.

Forget every bit of advice you've ever given your children or grandchildren-or really anyone-about their career choice. Go back and tell them to erase whatever you told them and/or to drop whatever they are doing and run, don't walk, to become a Washington lobbyist. There doesn't seem to be the remotest chance they'll ever be out of work.

Matthew Gniech, product manager-check image with Cummins Allison, asks why credit union members keep bringing in deposits.