National City Corporation confirmed the rumors: it entered a memorandum of understanding with the Federal Reserve Bank of Cleveland on April 29 and an MOU with the Office of the Comptroller of the Currency on May 5. National City chairman, president and CEO Peter E. Raskind was less than thrilled. “Generally, the relationship between a bank and its regulators is characterized by confidentiality,” Raskind said in a statement released on June 10. “Unfortunately, however, someone has breached the confidential relationship between National City and our regulators,” he continued. “These MOU’s address the issues of capital management, risk management, asset quality and liquidity management which have already been disclosed and discussed,” Raskind complains. If so, why the fuss? Well, confidentiality can key to a bank’s stability. Did not commenting to begin with boost confidence in National City? This piece of news should: “Following our recent $7-billion capital raise, National City has the highest Tier 1 capital ratio among large banks in the United States,” Raskind crows.
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The increasing adoption of virtual card payments by accounts payable departments has created an unexpected complication for suppliers: more friction in the processing, posting and reconciliation of payments and receivables. The root of the problem is that most suppliers rely on a manual approach to processing e-mailed virtual card payments. Suppliers are forced to balance their organization’s need for operational efficiency and control with rising customer demand to pay with a virtual card. But a new breed of technology enables suppliers to process virtual card payments straight-through, addressing the needs of buyers and suppliers. This paper details the growth of electronic business-to-business (B2B) payments, shows how manual approaches to processing virtual card payments cause friction in accounts receivables, describes a way to process virtual card payments straight-through, and highlights the benefits of frictionless payments.