BankThink

The regulatory risk from Basel III, Dodd-Frank and other pressures will keep banks from growing, and the economy can't grow, if banks don't.

Offer each retail customer the best terms for which he qualifies—and not just for mortgages. Don't count on a second chance to bargain or risk the legal and reputational consequences of offering less than your best.

Receiving Wide Coverage ...Et tu, UniCredit?: You can add UniCredit to the growing list of banks under scrutiny for possible sanctions violations. The Journal reports the Italian bank is being investigated by the New York County District Attorney's Office, the U.S. Treasury Department's Office of Foreign Assets Control (OFAC) and the U.S. Department of Justice concerning dealings its German unit HypoVereinsbank had with heavily sanctioned Iran. Few details regarding the probe have yet to become available, but the probe is apparently not the result of the high-profile money-laundering activities have received following the investigation of Standard Chartered by New York regulator Benjamin Lawsky, which ended in a $340 million settlement. According to the FT, UniCredit disclosed it was being investigating by U.S. authorities at least seven months ago, though "it appears never to have been reported in the media." Over the weekend, the bank said its German unit was in the process of conducting an internal review regarding the possible violations and that "it would be inappropriate to comment further at this time."

Community banks should exploit their advantages based on convenience, personal service, local decision making and a relationship model reliant on deep customer knowledge.

Regulators, politicians, bankers, and former Federal Reserve Chairman Paul Volcker himself are all searching for a simple, easy to understand, yet effective way to implement the Volcker Rule that is consistent with a safe and sound banking system. We agree and believe we have a solution that should be of interest to all concerned.

Bitcoin lets users send money nearly instantaneously, at almost no cost, and (if desired) anonymously. Getting funds in and out of the system is the hard part. That may soon change.

Politicians, regulators and lenders still have much to learn from a period dominated by the "affordable housing" ideology.

Vikram Pandit's recent comments about Citi's size may provide insight into why this once-proud institution now limps along as one of the weakest of the bailed out, Too Big to Behave Banks.

Receiving Wide Coverage ...SEC Problems: More information is emerging on why Democratic commissioner Luis A. Aguilar decided to vote against Securities and Exchange Commission Chairman Mary Schapiro's plan to regulate money market mutual funds. Apparently, Aguilar "didn't appreciate" Schapiro's move to show Congress a report on the risks of money funds he viewed as misleading. The Journal reports Aguilar was already on the fence about the new proposal when news of the report's circulation was mentioned by several media outlets. Aguilar believed the proposal, which would require money funds to either float share prices like other mutual funds or to post capital against losses on their asset holdings, could have unintended consequences and possibly spread systemic risk to unregulated corners of markets. Many of Aguilar's colleagues are more than a little displeased with his decision. Schapiro called the failed vote "tragic," while former SEC chairman Arthur Levitt said Aguilar's decision represented a "sad day for the commission and the country."

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