BankThink

Shifting control over routing debit card transactions from issuers to merchants will bypass small financial institutions and negate any benefit for exempt community banks.

"Time for a Separate Regulatory Tier for Small Banks" (Jan. 26) was on the money about the current regulatory environment and how it is impacting community banks and the overall economic recovery (or lack thereof). You have captured, with great accuracy, what community banks are facing.

With some people, just saying the word "interchange" is like pressing the play button on a tape machine: You're bound to get an earful, no matter what side they're on. Hence the strong reactions, pro and con, to Visa Chief Executive Joseph Saunders' Feb. 1 Viewpoint.

An FCIC report concluded that the GSE model was "fundamentally flawed." It should also have concluded that they plan an unneeded role, as a consequence of political expediency.

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IMGCAP(1)]

For those credit unions moving forward with a charter conversion, their strategy is simple and compelling: Escape while you can.

ANTI-CONVERSION CONVERSION REALITY The slowdown in conversions in the past few years implies that conversion to a bank is no longer a strategic option being considered. The reasons to convert to a bank charter are still valid. What's more, they are amplified by current economic conditions and the problems plaguing the credit union industry. The economic meltdown of 2007-09 slowed all financial transactions such as mergers, IPOs, private equity capital issuance, and new bank organizations. During 2010, deals started to happen again. Conversions to the bank charter will also resume.

Continually educating customers on the benefits of electronic billing solutions and increasing the adoption of online payment plays a large role in improving cash flow, ROI, and is a source for adding value.

If it is true that the NCUA regulators were on sight during the investment-buying binge at Wescorp in 2005 and 2006, why aren't they being held accountable as well?