Receiving Wide Coverage ...
Return to Form?: Community banks are doing very well, thank you very much,
Earnings and lending are up, though they haven't quite returned to pre-crisis levels. The main challenge is the regulatory regime, designed for big banks but nevertheless applicable to community banks. "It's a hell of a lot better than it was 2010 to 2012, but it's still not where it was," Camden Fine of the Independent Community Bankers of America said in an interview.
The series will continue later this week with articles on China and digital banking; a profile of PayPal; and whether banks have restricted mortgage lending to minorities. The series also includes a story Wednesday on Fed Governor Daniel Tarullo, called the most powerful man in banking and the "Wizard of Oz" for his level of influence over the industry.
When Tarullo speaks, banks listen. Example: when the Fed flunked Bank of America and Citigroup in recent stress tests, each bank spent at least $100 million to correct problems highlighted by Tarullo and his Fed minions.
The WSJ profile includes other interesting nuggets into Tarullo's personality and approach to his work. Unnamed sources said Tarullo yelled and cursed at staff members during his early years, both for producing work he didn't like and for disagreeing with him. He's known for a lack of an ability to compromise, especially when presented with data that supports the industry's point of view.
In one example of his refusal to budge on issues, Wells Fargo was recently ordered to raise $40 billion of debt to absorb losses and prevent a bailout. Wells Fargo argued the requirement wasn't necessary and the bank felt Tarullo listened to its reasoning. But he made no changes or adjustments to reflect Wells Fargo's position.
Wall Street Journal
Employers of all stripes are getting into the lending business. While not actually opening companies to make loans, employers from IBM to small businesses are
"I can't have an effective employee if they are stressed and thinking about waiting tables on the side to make ends meet," said the CEO of a New York creative media agency with 33 workers. It's something that a lot of rank-and-file workers might find useful. About 51% of adults with full-time jobs carry balances on their credit cards and about 40% struggle to meet monthly household expenses, according to a recent PricewaterhouseCoopers survey.
Some employers have partnered with outside firms to help them make loans to workers, such as Ziero Financial, Zebit and Kashable.
Is the housing market headed toward another bubble? Home prices have
The situation is good for sellers, of course, and for potential buyers who have sterling credit, according to industry experts. But it's going to make it difficult for first-time homebuyers who haven't saved enough for a downpayment.
Financial Times
JPMorgan Chase, HSBC and Bank of Tokyo-Mitsubishi are expected to be involved in the Kingdom of Saudi Arabia's upcoming
Washington Post
A Barclays banker in New York was charged with
Elsewhere
Reuters: Bank of America