BankThink

The Credit Union National Association is urging Senate leaders not to pass an extension of the Transaction Account Guarantee program.

Anywhere in the world, if you had $55 billion in capital, and then lost $55 billion, your capital would be zero. But under the Fed’s own special accounting rule, if it lost $55 billion, its capital would still be $55 billion.

Senator-elect Elizabeth Warren successfully beat out GOP incumbent Sen. Scott Brown securing herself a spot on the Senate Banking Committee.

Receiving Wide Coverage ...SEC Sues Auditing Firms: The Securities and Exchange Commission is suing Chinese affiliates of the Big Four accounting firms Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers as well as BDO for failing to produce documents related to fraud investigations at nine China-based companies. Charges were filed against the auditors as part of a larger investigation into the Chinese companies themselves, following a string of "so-called reverse mergers" that led to billions of dollars in investor losses. Depending on how this plays out, the case could wind up having broad implications. The Journal reports the affiliates could wind up being barred from auditing U.S.-traded firms, which "could complicate the audits of multinational companies doing business in China." Meanwhile the FT says the move "could lead to the wholesale delisting of Chinese companies from the U.S. stock market" since it could leave Chinese companies in the U.S. without auditors. (The Journal actually echoes these concerns in a separate article.) Not surprisingly, the Big Four auditors say they plan on working with regulators to find a "diplomatic solution."

Banks often choose not to bring questions about products, terms and marketing to regulators, citing fear of retribution from front-line examiners. Creation of the CFPB separates consumer policymaking from examination activities, offering hope for open, clear communication.

Here we find a bank president, who makes a loan commitment over a martini - if I may be facetious - without even looking if there is an olive in the glass.

The money in TAG accounts is the hottest of the hot. If interest rates rise, these funds will disappear, hurting liquidity and capital for the banks that use the program.

Why young people are not joining credit unions and other insights.

The National Credit Union Association's proposed budget boost sign agency needs to be folded according to Treasure-Manager of Unity Credit Union Dennis G. Moriarity.

Rates dropped significantly since January of 2011 and there is no compelling reason to invest anymore. Does this mean you should not put your money to work?