BankThink

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.

Wall Street JournalIncentives dropped: Wells Fargo said it will stop offering bonuses to its securities brokers for urging customers to take out loans, including mortgages, securities-backed loans and other consumer lines of credit. "Such bonuses usually come in the form of deferred compensation and can add several thousand dollars to a broker's annual pay," the Journal said. Erik Karanik, a managing director at Wells Fargo Advisors, said the move brings the brokerage unit in line with the rest of the bank, which has changed its sales incentives in the wake of the phony accounts scandal.

The chip card migration is drawing more attention to card not present fraud. Account takeover risk is also on the rise.

A startup aims to highlight the social impact that banks have to allow easier vetting by prospective customers; community banks like Jill Castilla's are getting income from being tech vendors; and Amex is making its parental leave policies better next year, in a move that just might be an emerging trend. Plus, Wonder Woman loses her U.N. job … because of the way she dresses.

It is not a clear-cut statement to say Fannie Mae and Freddie Mac need more capital, and it detracts from the real debate over long-term housing finance reform.

The National Credit Union Administration rule expanding member business lending introduces new risks and lacks legal basis.

Receiving Wide Coverage ...Confirmed: As expected, Goldman Sachs named David Solomon and Harvey Schwartz as presidents and co-COOs to replace Gary Cohn, who is leaving to join the Trump administration. The naming of two co-presidents to replace Cohn "raises questions about the structure and strategic direction of the company," the Financial Times says, and suggests "a return to a traditional structure that pits an executive from the trading side of the business against one from investment banking." While the New York Times suggests it's "a new generation."

In response to a series of cyber bank thefts, Swift has developed new guidance. It's a necessary first step, though banks for now are still left to fend for themselves.