BankThink

Ensuring that corporate boards include a diverse set of skills, backgrounds and personalities helps against groupthink's dislocation of corporate and shareholder interests.

Receiving Wide Coverage ...Laundry Bills: The whispers were out there last week, now it's official: HSBC has admitted it ignored signs of money laundering for years and agreed to pay a record $1.9 billion in a settlement with U.S. authorities. (Wall Street Journal, Financial Times, New York Times.) Fellow British bank Standard Chartered agreed to a $327 million settlement for violating U.S. sanctions against Iran, Libya and other nations (Journal, New York Times), bringing its total fines in this matter to $667 million. Crain's New York Business says the latest StanChart settlement vindicates Benjamin Lawsky, the New York financial regulator who was accused of going rogue when he went after the bank this past summer. The FT's "Lex" column finds the penalties paid by HSBC and StanChart unimpressive — a "rap on the knuckles." The paper's Business Blog says the settlements show "that what used to be regarded as these banks' biggest virtues — their exposure to emerging markets and new growth economies — are also weaknesses. … In emerging markets, retail banking and money transfer often have higher margins and growth ratings, but carry regulatory risks. HSBC got caught by not overseeing its Mexican operations rigorously." (Citigroup stakeholders, take note.) The Journal offers a mini-profile of Stuart Levey, HSBC's chief legal officer, who led the settlement talks with the U.S. And the Times reports on the bank's hiring of a former U.S. Treasury official to direct financial crime compliance, a newly created role.

Innovations can fail catastrophically, as was the case for the mortgage and securitization innovations that precipitated the crisis. Valuable innovation profitably and honestly delivers greater perceived value to customers, without incurring disproportionate cost and risk.

Todd Park is hardly a civil service Yes man. He's a presidential scholar with a Harvard degree and two successful start-ups under his belt.

Congressional approval for a two-year extension would, among other things, prevent more uncertainty, minimize deposit concentration and maximize financial stability.

Transaction-driven marketing not only provides financial institutions with a proven way to monetize their digital banking platforms (online, mobile, SMS, e-mail, ATM), but also enhances member relationships by providing secure, targeted, relevant offers that help members save money on everyday purchases.

Most credit union leaders know not to take anything for granted.

Credit unions large and small have contemplated the member and bottom-line benefits of seeking a merger.

John Worth, chief economist with the National Credit Union Association, explains what the potential for going over the fiscal cliff means to credit unions.

Readers beware. On the heels of the Consumer Financial Protection Bureau/Department of Education report, "Private Student Loans," sensational headlines continue.