BankThink

Retail banks find themselves staring down an outsized challenge: how to drive growth?

The problems with "Too Big to Fail" is not just what happens should a large firm approach failure. Indeed, that may be the least expensive and dangerous problem with the TBTF. Arguably the biggest problem is what the continuance of TBTF — reinforced by the implementation of the Dodd-Frank Act — is doing right now.

The supervisory relationship is, in its way, stronger even than the bonds of matrimony. There are no divorces in banking. Despite the many temptations, and even the occasional justifications, bankers cannot indulge their passions and treat examiners harshly.

The dilemma for community bank directors is to choose between minimizing their personal liability and the useful function that board reviews of individual loans can serve.

Citigroup has so far come off looking good in how it has fought off its website breach — 99% of its cardholders were unaffected, and a recent New York Times story portrayed Citi as the victim of "a team of sophisticated thieves" — but the approach of Citi's foes wasn't all that sophisticated.

Internal stress-testing is a good practice, but regulatory use of hypothetical results to determine supervisory ratings or required capital levels would be destructive.

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The recent THINK 11 Conference had an all-star line-up of business and thought-leaders who have two things in common: All are members of the Great Success Club, and none are members of a credit union.

U.S. Public Interest Research Group presents the argument that merchants will pass their savings on to the consumer. My thoughts on that idea in three words: WHEN PIGS FLY!