PayThink

Even though there are more mobile devices than people, many retailers continue to scratch their heads as to why there’s so much less enthusiasm behind mobile payments than overall mobile adoption.

Recently released transcripts of Federal Reserve meetings during the last financial crisis reflect how blind policymakers remained to what was unfolding even at its peak. That suggests the Financial Stability Oversight Council’s efforts to sound an early warning next time around are reminiscent of Charlie Brown hoping Lucy won’t pull away the football.

Risk is like water, seeking the path of least resistance. If the path is narrowed, risk does not necessarily evaporate, as regulators wish, but often focuses as a more concentrated force. Accepting this alternative concept of risk has far-reaching policy consequences.

Continued focus on this single, but complex Dodd-Frank provision will distract bank managers and regulators from finding ways to make the global financial system healthier.

Prohibiting future ownership of unstable CLOs is probably a good thing. Forcing a select group of banks, however, to sell these assets over a short time is not the optimal solution.

A recap of the informed opinions (and the discussions they generated) on BankThink this week.

Until recently, mobile wallets could count on getting at least some boost from exclusivity. If you were on Sprint, you could use Google Wallet but not Isis. If you were on AT&T, Verizon or T-Mobile, you could use Isis but not Google Wallet. If you had an iPhone, you could use neither, but you had your pick of software-based mobile wallets such as LevelUp and the Starbucks card.

The highway to higher bank profits is littered with dead banks and S&Ls. Don’t be surprised to discover a few more casualties along the highway if and when long-term fixed-rate lending really takes off.

Jan. 10, 2014, will be remembered in years to come as the day that brought sweeping changes to the way mortgage loans are underwritten.

2014 has begun and the credit union system is analyzing a sizable and complicated proposed rule from NCUA that would implement a risk-based capital requirement for natural person credit unions.