BankThink

The banking system ultimately needs a balanced approach to capital, which allows banks to efficiently function while also maintaining financial stability.

Breaking News This Morning ...Deal: Lloyds Banking Group agreed to buy Bank of America's U.K. credit card business, called MBNA Limited, for about $2.4 billion. The deal, which includes about $8.7 billion in assets, would boost Lloyd's share of the British card market from 15% to 26%, about the same share as market leader Barclays. "The deal culminates years of upheaval and reorganization at the bank, which the British government bailed out in the middle of the 2008 global financial crisis," the New York Times said.

Alipay's fast growth is partly attributed to the huge size of the Chinese market, but it also deploys strategies that can serve as an example for mobile wallets in other parts of the world.

The appeal of information pathways such as the internet were seen as possibly bringing about a "comeback" for artificial intelligence in financial services — in the 1990s.

One step the government can take is to create a unified office dedicated to housing finance and policy to streamline existing agencies and programs and make them more efficient.

Receiving Wide Coverage ...Still in charge: Almost forgotten in last week's senior management shakeup at Goldman Sachs is that the man who fills the corner office is still there and not going anywhere. "While Goldman [last] week underwent its most dramatic management reshuffling in a decade, Lloyd Blankfein remains firmly ensconced as chief executive — and appears likely to stay, having outlasted an impatient deputy and effectively restarted the clock on his new successors-in-waiting," the Wall Street Journal reports. "That means Goldman's strategy isn't likely to change much from the course set out in recent years: cautiously expanding into new areas while hawkishly defending its turf in the core businesses of trading and corporate banking."

As retailers, banks and technology companies continue to suffer data breaches, issuers and merchants need to take extra care when selecting payment vendors.

American Banker is pleased to bring you Breaking Banks, hosted by Brett King, and featuring the editors of American Banker.

To act like a startup — as many banks say they want to do — institutions must employ a nontechnical strategy: build services based on customers say they want.

Borrowers served by the FHA program, particularly first-time buyers and minorities, have benefited from nonbanks' increase in lending. Those independent lenders should be commended for filling a gap.