Slideshow

'Wash out the executive suite': Comments of the week

Readers respond to how the industry is donating ahead of the midterms, weigh in on a push to apply CRA-like standards to fintechs, react to a controversial decision by a California court and more.

Sen. Jon Tester, D-Mont.
Senator Jon Tester, a Democrat from Montana, speaks during a Senate Energy and Natural Resources Committee confirmation hearing for Representative Ryan Zinke, U.S. secretary of interior nominee for president-elect Donald Trump, not pictured, in Washington, D.C., U.S., on Tuesday, Jan. 17, 2017. Zinke, Trump's pick to head the Interior Department, earned $85,000 from a company that has a stock price of 8 cents, an accumulated deficit of more than $100 million and no customers. Photographer: Zach Gibson/Bloomberg
On an argument that bankers should consider supporting Sen. Jon Tester, D-Mont., in the midterm elections for his work supporting the regulatory relief law passed this spring:

"Testor voted 'Yea' on Dodd-Frank, and he recently voted 'Nay' on repealing the Arbitration Clause in Dodd-Frank. If how an elected federal official voted on ONLY banking-related bills was exclusively compelling, then that is all any community banker would need to know to NOT support Testor. And, taking this position is made even easier since Testor supports Chuck Schumer and Sherrod Brown the vast majority of the time on all non-banking issues. [The author] is simply wrong."

Related: Why bankers should support a Democrat in the midterms
Rep. Maxine Waters, D-Calif.
Representative Maxine Waters, a Democrat from California and ranking member of the House Financial Services Committee, questions witnesses during a hearing in Washington, D.C., U.S., on Wednesday, Oct. 25, 2017. The hearing was titled Examining the Equifax Data Breach. Equifax Inc., already reeling from American probes into the loss of data on 145.5 million customers in a computer hack, will face an investigation in the U.K., where 694,000 consumers had information stolen. Photographer: Andrew Harrer/Bloomberg
On an argument that bankers need to prepare for the possibility of a "blue wave" in November:

"I would remind everyone of the cycle of rebuilding a sports team. In the first stage, you lose big. In the next stage, you lose close. This is followed by winning close, which is where Dems are apt to be in November. In 2020, they may finally win big."

Recent: A blue wave is coming. Banks need to get ready
A recent court ruling in Illinois advances a conspiracy case against prominent Wall Street banks.
A recent court ruling in Illinois advances a conspiracy case against prominent Wall Street banks.
On a California court ruling that certain loans with high interest rates can still be deemed illegal — even if they do not violate usury laws — if they are considered "unconscionable":

"Eliminating stated interest rate caps while providing that some loans not subject to usury laws may still be illegal by virtue of 'unconscionable' rates fairly begs for capricious and arbitrary court rulings. A determination of what is 'unconscionable,' a vague and ambiguous term, is highly subjective. You know, like... capricious and arbitrary. This is bad law for both consumers and lenders."

Recent: Loans not subject to usury cap can still be illegal: Calif. high court
for-sale.jpeg
House for sale
On how the next head of the Federal Housing Finance Agency can overhaul the mortgage finance market without help from Congress:

"Terminating executives earning more than $600K would be a good start. The GSE machinery is built and running. Neither GSE has had a new customer in a decade in either the single family or multifamily space. It is an unnecessary extravagance. Wash out the executive suite - tabula rasa!"

Recent: How next FHFA chief can reform Fannie, Freddie without Congress' help
Sen. Joe Donnelly and Sen. Heidi Heitkamp
Senator Heidi Heitkamp, a Democrat from North Dakota, left, talks to Senator Joe Donnelly, a Democrat from Indiana, during a Senate Banking Committee hearing with Janet Yellen, chair of the U.S. Federal Reserve, not pictured, in Washington, D.C., U.S., on Tuesday, Feb. 24, 2015. Yellen said inflation and wage growth remain too low even as the job market improves, and she signaled that a change in the Fed's guidance on interest rates won't lock it into a timetable for tightening. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Heidi Heitkamp; Joe Donnelly
On an analysis showing the banking industry contributing heavily to several moderate Senate Democrats:

"If the banking industry thinks they will get friendly votes from these moderate democrats, I have a bridge to sell the believers."

Recent: Surprise winner in banks' midterm donations: Moderate Dems
Ron Glancz
On the death of Ronald Glancz, a longtime regulator and industry lawyer:

"Ron Glancz was a go-to source for many @AmerBanker reporters. Always insightful and friendly. He will be missed. My condolences to his friends and family." (via Twitter)

Related: Ronald Glancz remembered for banking acumen, mentoring next-gen lawyers
fdic.jpeg
A man films the exterior of the Federal Deposit Insurance Corp. headquarters in Washington, D.C., U.S., on Tuesday, Sept. 29, 2009. The FDIC, seeking to replenish deposit reserves as banks fail at the fastest pace in 17 years, today voted to unanimously to have lenders prepay fees through 2012 raising about $45 billion. Photographer: Andrew Harrer/Bloomberg
Another response on the passing of Glancz:

"Ron joined the FDIC's law department during my years as Chairman. He was conscientious, smart, hard working, and a pleasure to work with. He will be missed by those of us who knew him. Bill Isaac, former Chairman, FDIC."

Related: Ronald Glancz remembered for banking acumen, mentoring next-gen lawyers
tech-apps.jpeg
Caucasian business hands holding tablet with business screen
On an argument about the risks of applying Community Reinvestment Act standards to fintechs seeking a special-purpose charter:

"Non banks have been serving riskier borrowers because deposits are not exposed to risk like banks. So a level playing field has been attempted but banking examiners do not have a large appetite for risky loans on the books. CRA will become effective if banks are allowed tolerate the risk."

Related: CRA-like standards for fintechs could reduce access to credit
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