We review what bankers and others had to say this past year about the financial services industry, the market, and events on Capitol Hill. These quotes appeared in American Banker on the dates shown; individuals' titles are for the offices they held at the time.
"The pipeline of problem credits is
definitely slower."
Kevin Blakely, KeyCorp's chief risk officer, Jan. 6
"There has been such a big cloud over these companies recently. Now that there is an accounting issue, the clouds just got thicker."
Paul Miller, a Friedman, Billings, Ramsey Group Inc. analyst, after Freddie Mac announced it would restate three years of earnings, Jan. 23
"The new commercial problem loans definitely appear to have abated."
Jason Goldberg, an analyst at Lehman Brothers, Jan. 31
"There are a few signs that - if you've got your rose-colored glasses on - you can take some comfort in."
Barbara Grunkemeyer, the credit expert at the Office of the Comptroller of the Currency, Jan. 31
"Stay the hell away from national banks."
Comptroller of the Currency John D. Hawke Jr., to payday lenders seeking bank partnerships, Feb. 3
Agency acquisitions are "going to continue to be an important part of our go-forward plan as it relates to our association with Wells Fargo."
Kevin W. Conboy, Acordia Inc.'s designated chief executive officer, Feb. 7. Acordia, which Wells bought in May 2001, did four agency deals in late summer and another in October
"If I were a bank, I wouldn't be buying orange blazers for my team any time soon."
Karen Shaw Petrou, the managing director of Federal Financial Analytics, on legislation blocking the Treasury Department from granting real estate powers to banks, Feb. 14
"We certainly did not steal it."
Thomas A. Renyi, the chairman and CEO of Bank of New York Co., on its $2 billion deal for Pershing from Bear Stearns Cos., Feb. 19
"We are all interested in disclosure and transparency. It's a question of how we get there: Is it Fannie Mae and Freddie Mac? Is it the Federal Home Loan banks? That's a very complicated issue, and that's why we would do oversight on it to see what is going on."
Senate Banking Committee Chairman Richard Shelby, R-Ala., March 13
Fannie and Freddie are "the linchpin for the whole housing machine; I would be serving you lunch without the GSEs."
Angelo Mozilo, the chairman of Countrywide Financial Corp., May 15
"It is definitely helpful to the markets if the Federal Home Loan banks ... have appropriate disclosure."
Securities and Exchange Commissioner Cynthia Glassman, calling for increased disclosure by the 12 Home Loan banks, March 13
"We are seeing application volume go through the roof. Last week we took more applications than in any week since 1993."
Robert M. Couch, the president and CEO of New South Federal Savings Bank in Irondale, Ala., discussing mortgages, March 20
"People are tired - processors, closers, people in the back room. It is very difficult to find anybody when you need them to work 12- to 15-hour days and six to seven days a week."
Judson Croom, the senior vice president at Irwin Mortgage Corp. in Indianapolis, on mortgage volume, March 20
"What we have in mind is just renewing those provisions that are set to expire this year and making them permanent. … We're not thinking of creating any brand-new uniform standards."
Wayne Abernathy, the Treasury's assistant secretary for financial institutions, on the Bush administration's decision to seek a narrow reauthorization of expiring preemptions in the Fair Credit Reporting Act, March 24
"The NCUA is running wild and giving credit unions permission to do things that they don't have the authority to do."
Daniel J. Devine, the president and CEO of the $170 million-asset Rondout Savings Bank in Kingston, N.Y., on the relaxing of restrictions on credit unions' business lending, April 1
"We have a severe problem in America today, because children aren't learning financial life lessons in school or at home."
Donald G. Ogilve, president and CEO of the American Bankers Association, April 11
"We are not under the gun. Of the three key elements in the legislation, probably the one thing that really needs to be done … is merge" the bank and thrift funds.
Mr. Abernathy of the Treasury, on deposit insurance reform, April 24
"They are pragmatic in their giving, trying to make friends on both sides of the aisle."
Steve Weiss, the communications director for the Center for Responsive Politics, on the banking industry's donating to Republican candidates via political action committees and to Democrats via large contributions from executives and their spouses, April 25
"We are seeing general acceptance by consumers of electronic transactions, and ACH plays a big part in that."
Len Heckwolf, a senior vice president at Bank One Corp. and the chairman of Nacha, April 28
"I think you'll be seeing some banks - some larger than you might expect - exit from the payments business in the next 18 months."
Austin Adams, Bank One's chief information officer, May 8
"People really do expect to see something long-lasting and serious coming out of e-commerce."
Lawrence G. Baxter, the chief e-commerce officer of Wachovia Corp., May 8
"I am not convinced that the global settlement has done enough to change attitudes at the top of these banks."
Sen. Shelby, at a hearing on the $1.4 billion global settlement reached with 10 leading investment banking firms, May 8
"Rules are meaningless unless there is dedication to complying with them."
New York Attorney General Eliot Spitzer, on the global settlement, May 8
"Consumers are enticed to use their bank account in an unsafe and sound manner. They are charging consumers the same penalty rate used to discourage overdrawing accounts even though they are giving them permission to do so."
Jean Ann Fox, the director of consumer protection at the Consumer Federation of America, on overdraft policies, May 20
"Before you offer a bounce protection product, decide if you'd want to defend the one you're considering in your local newspaper or to your regulator."
C. Kendric Fergeson, the ABA's chairman-elect, May 20
"The customers are a lot smarter than the consumer groups give them credit for."
C.R. "Rusty" Cloutier, the CEO of MidSouth Bank in Lafayette, La., defending overdraft protection, May 20
"Transparency challenges market participants not only to provide information, but also to place that information in a context that makes it meaningful" and "to present information in ways that accurately reflect risks. Much disclosure currently falls short of these more demanding goals."
Mr. Greenspan, May 23
"We don't know anything about banking. That's not what we are. We're an insurer, and why would we give up being a dominant insurer? So we can become submerged by a bank? No way."
Sy Sternberg, the CEO of New York Life Insurance Co., May 23
"As much as I would love to say banks and insurance companies are getting together, I don't see it happening in the next 10 years."
John Nigh, a principal and the head of the M&A practice at Tillinghast-Towers Perrin, May 27
"There are people who have done it three times in the past four years, sometimes three times in the past year, honestly."
Ellen Bitton, the CEO of Park Avenue Mortgage Group Inc. in New York, discussing the refinancing boom, June 12
"This is a great opportunity for State Street to realign the people and the processes it uses to conduct its business."
Ronald E. Logue, its president and chief operating officer, after disclosing that twice as many employees as expected, 3,000, had taken voluntary severance, June 25
"I don't want to do any harm to the market, but we want to make sure that others do no harm to the market."
Sen. Shelby, announcing state-of-the-industry hearings, July 7
"I think I'm grown-up enough to not get in the way."
Sandy Weill, the chairman of Citigroup Inc., explaining how he will not meddle after turning over the CEO job to Charles O. Prince, July 17
"Sandy who?"
Mr. Prince, Citi's then-president, when asked if he would be reluctant to make decisions with which Mr. Weill disagreed, July 17
"How did you blow it so badly last month?"
Sen. Charles Schumer, D-N.Y., to Armando Falcon Jr., the director of the Office of Federal Housing Enterprise Oversight, at a Senate Banking hearing on Freddie's accounting problems, July 18
"I know of no evidence that regulatory capital requirements - which generally are below the actual amount of capital banks hold - influence either the pricing or availability of credit."
Roger W. Ferguson Jr., the Fed's vice chairman, on the Basel II capital rule, July 22
"I'm just not sure someone who has consistently opposed regulations, transparency, and oversight for the derivatives markets should be director of an agency that regulates the GSEs."
Sen. Jack Reed, D-R.I., to Mark Brickell during a hearing on his still-pending nomination to head OFHEO, July 23
"I've jokingly said to friends that now I know what the definition of 'collateral damage' is."
Franklin D. Raines, Fannie's chairman, July 31
"The rapidity with which this issue is being revisited calls into question the reliance that any financial institutions can place on published final rules. It also creates a troublesome precedent that may encourage future lobbying efforts by anyone unhappy with the outcome of the orderly public rulemaking process."
Paul S. Shimotake, a vice president and senior counsel of Wells Fargo & Co., in a letter to the Treasury on the reopening of a Patriot Act final rule, July 31
"I think everybody feels that we're starting a new day."
Carl Pascarella, the CEO of Visa U.S.A., on the settlement of the Wal-Mart litigation, Aug. 1
"There's no doubt in my mind that's it over."
Anthony Hsieh, the chairman of HomeLoanCenter.com of Irvine, Calif., discussing the refi boom, Aug. 7
"I am fiercely determined to lead our great company to be the best at everything we do. And we will do it in a manner marked by openness, transparency, and candor."
Gregory Parseghian, the Freddie executive selected to become its CEO but subsequently ousted by regulators, Aug. 8
"Those that were born of the refi boom will die in the refinance bust."
Mr. Mozilo of Countrywide, Aug. 21
"I promise we will do the right thing in this situation."
James Dimon, Bank One's chairman and CEO, on offering restitution for One Group funds customers who may have been harmed by market timing, Sept. 11
"The refi boom, for all intents and purposes, is over."
Donald Henig, the executive vice president of American Home Mortgage Holdings in Melville, N.Y., Sept. 11
"This is bad news. It will shift [New Haven Savings Bank's] focus away from creating a strong local economy and push it towards earning the highest returns possible for shareholders all over the globe."
New Haven Mayor John DeStefano, on the thrift's plan to go public and acquire two Connecticut banks, Sept. 11
"We're very vulnerable staying the same size and not expanding."
Diane Wishnafski, New Haven's head of commercial lending, Sept. 11
"This bill is, in many ways, landmark legislation that addresses some of the real needs people have in terms of obtaining credit, keeping our economy moving with easily available credit, … and protecting individuals against theft of their own identity."
House Financial Services Committee Chairman Michael G. Oxley, R-Ohio, before the 392-to-30 approval of the Fair and Accurate Credit Transactions Act, Sept. 11
"The biggest concern that we always have is that there's damage to Bank of America's reputation."
Kenneth D. Lewis, chairman and CEO, Sept. 12
"We want to get out of the business of precise forecasting of losses."
Richard D. Fairbank, the CEO of Capital One Financial Corp., Sept. 12
"I certainly see big chunks of the U.S. bank market who are much more willing to use the secondary market to lay off difficult credits."
Howard Tiffen, a portfolio manager at Van Kampen Investments Inc., Sept. 16
"I'm a banker, and I am totally greedy. I would love every account I can open, every loan I can make."
Irwin Wong, Cathay Bank's executive vice president of retail operations, responding to claims that the Los Angeles bank does not offer mortgages to non-Asian-American customers, Sept. 16
"We expect to have the first of our U.S. bank agreements signed no later than the second half of 2004."
Kenneth I. Chenault, the chairman and CEO of American Express Co.,Sept. 23
"The vast majority of retail banks will be reluctant to share their commercial and consumer relationships with a competitor like American Express, who has publicly acknowledged its cross-selling strategy."
Mr. Pascarella, the CEO of Visa U.S.A., Sept. 23
"We must not settle for a crippled regulator."
Mr. Abernathy of the Treasury, on legislation designed to revamp the regulation of government-sponsored enterprises, Oct. 8
"What we'd like to do is to grow the company at a sustainable 10% over the next five years. And if I could sign up for that today, I would sign up gladly."
Eugene McQuade, the president of FleetBoston Financial Corp., Sept. 22. Fleet agreed Oct. 28 to sell to Bank of America
"Our customers tell us that they like having more than one place to shop. They've said to us that they like their insurance agent to be independent of us, and honestly, I don't blame them. It makes sense."
Greg Gibson, the chief financial officer of MountainBank in Hendersonville, N.C., explaining why it will not get involved in insurance sales despite plenty of solicitations to do so from insurers and third-party marketers, Oct. 8
"I don't think you can go far enough to get a bill that many on the committee would support unless it is actually written by Fannie Mae. And we are not going there."
Rep. Richard Baker, R-La., blaming Fannie's intense lobbying for scuttling the GSE reform bill, Oct. 9
"There are some proposals I've seen for an independent regulator. My concern is much more with having a strong regulator than having it at Treasury."
Treasury Secretary John Snow, testifying on the creation of a new GSE regulator, Oct. 17
"We have come a long way this year."
Dina Dublon, J.P. Morgan Chase's chief financial officer, Oct. 23
"My intention is that we won't lose any customers."
Charles K. Gifford, Fleet's chairman and CEO, responding to worries about customer runoff as a result of the deal with Bank of America, Oct. 28
"The accountants would rather see more purity and less latitude for the banks to use the provision and move things around, but the regulators still want to give the banks a lot of latitude, and the regulators still have a lot of influence."
Christopher Bingaman, the portfolio manager for the Diamond Hill Bank and Financial Fund, on the tug-of-war over loan-loss reserves, Oct. 31
"Credit unions deserve to be 21st-century financial institutions, just like everybody else."
John McKechnie, the senior vice president for government affairs at the Credit Union National Association, on the issue of easing membership limits, Nov. 10
OFHEO is "like the lonely sheriff in the town of outlaws, and the outlaws have bigger guns, [though] I don't mean to say the government-sponsored enterprises are outlaws."
Mr. Abernathy of the Treasury, Nov. 13
"The division is concerned that the board's proposed interpretation [...] will continue to encourage competitive inequities in markets in which banks and nonbanks compete."
R. Hewitt Pate, an assistant attorney general in the Justice Department's antitrust division in a comment letter to the Fed on revising its "tying" rules, Nov. 14
"In the upper end of the market, cross-selling is dead."
Damian Kozlowski, the head of Citigroup Private Bank, on offering wealthy clients both proprietary and nonproprietary products, Nov. 17
"With these contract servicers, the customers have no choice about who services their loans, so there is no incentive to work with customers in a reasonable way, only to maximize collections with aggressive practices."
Josh Zinner, the director of South Brooklyn Legal Services/Foreclosure Prevention Project, Nov. 17
"Everybody - the regulator, legislators, investors, seller-services - all want to know that we have a clear vision and a clear aim at getting this behind us."
Paul T. Peterson, Freddie's chief operating officer, announcing restated earnings, Nov. 24
"The environment that we are in today is more challenging than I have seen in several quarters."
Kerry Killinger, the chairman of Washington Mutual Inc., issuing a warning on 2003 and 2004 earnings after a sharp decline in mortgage originations, Dec. 10
"As a government-sponsored enterprise, Freddie Mac lives off of a public trust that should never be violated."
Mr. Falcon of OFHEO, releasing a 185-page report on Freddie's accounting, Dec. 11
