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Like any good central banker, Ben Bernanke kept most predictions to himself during a speech Thursday, but gave his audience at least one good forecast to digest.
The subject, however, was not the federal funds rate. Instead, Bernanke was asked to weigh in on the Super Bowl game between the Green Bay Packers and Pittsburgh Steelers. (The winner was decided after this issue of American Banker closed.)
Known to be more interested in baseball, the Federal Reserve Board chairman admitted to watching a football game or two and was knowledgeable enough to remind the audience that he shares a first name with Steelers quarterback Ben Roethlisberger. But when asked whether he has a favorite to win the game, Bernanke offered his usual measured response.
"I'm looking forward to the game," he said. "The [Washington] Redskins didn't make it this year once again, unfortunately, so I will be studiously objective."
Still, he offered up a nugget to guide game watchers and market watchers. "I think GDP will drop to nothing during that three-hour span," he said.
Collateral Damage
Economic challenges are not just a matter of policy for members of Congress.
Published reports last week said House Financial Services Committee member Rubén Hinojosa, D-Texas, filed for bankruptcy in December. Hinojosa had guaranteed a loan for his family's meat company, which went bankrupt, according to the reports. His debt of nearly $3 million includes a $2.6 million claim by Wells Fargo Bank, the lender.
In a statement, Hinojosa said he has no direct role in the business and blamed its collapse on the financial crisis.
"My filing for bankruptcy was the result of the business loan I personally guaranteed for my family business, H & H Meat Products Co. Inc., when it was doing well financially," he said. "Although over the last 14 years I had no managerial responsibility or oversight of H & H, I remained contingently obligated on a bank line of credit of H & H when it was forced into bankruptcy due to the recent economic downturn and financial market meltdown."
Open on the Web
The Consumer Financial Protection Bureau took another step toward opening its doors by unveiling a Web site last week.
The "beta" site, www.consumerfinance.gov, is full of interactive tools, including an area where visitors can offer input on creating the regulator. Other highlights include YouTube videos featuring Elizabeth Warren, the administration official leading the CFPB's development, and blog posts from bureau employees as well as links to Facebook and Twitter.
An animated video about the financial crisis and the CFPB's mission is narrated by film director Ron Howard. An interactive version of Warren's calendar is also available.
"This agency will put a cop on the beat to enforce the laws on credit cards, mortgages, student loans, prepaid cards and other kinds of consumer financial products and services," Warren says in one video.
ICBA Nominees
The Independent Community Bankers of America announced nominees on Feb. 3 for its 2011-2012 executive committee.
They include Salvatore Marranca, the ICBA's chairman-elect and the chief executive of Cattaragus County Bank in Little Valley, N.Y., who is to be voted in as the trade group's chairman at its national convention March 20 in San Diego.
Jeffrey Gerhart, the chairman of the Bank of Newman Grove in Nebraska was nominated to be chairman-elect. William Loving Jr., the president and chief executive officer of Pendletown Community Bank in Franklin, W.Va., was nominated for vice chairman. And Steven Gardner, the chief executive of Pacific Premier Bank in Costa Mesa, Calif., was nominated for secretary.
Roundtable's Board
The Financial Services Roundtable named 12 executives to its board of directors.
They include Walter A. Bell of Swiss Re America Holding Corp., William H. Cary of General Electric Capital, Ellen Costello of Harris Financial Corp., James A. Israel of John Deere Financial, John D. Johns of Protective Life Corp., Bharat Masrani of TD Bank, Liam E. McGee of Hartford Financial Services Group Inc., Ronald P. O'Hanley of Fidelity Investments, Edward B. Rust Jr. of State Farm Insurance Cos.; James C. Smith of Webster Financial Corp. and Thomas R. Watjen of Unum.
