'All the Advantages, None of the Arbitrary Rejections': Comments of the Week
April 2, 2015 7:30 AM
American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and from social media platforms.
Image: iStock
On the appeal of check cashers as opposed to banks:
"All of the advantages, none of the arbitrary rejections. Well, aside from the 50% interest rates. But worth it." (via Twitter )
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Image: iStock
On the Federal Deposit Insurance Corp.'s effort to steer banks away from brokered deposits:
"If community bankers want FDIC insurance, then it comes with government employees controlling its use. We either get both or neither."
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Image: Bloomberg News
On whether the FDIC's treatment of brokered deposits makes sense given that online banking has made it easier for banks to gather deposits from wide-ranging areas:
"Geography is becoming increasingly irrelevant with each passing day. Bankers and regulators must learn to define 'community' like Facebook does. Customers (commercial and retail) have the option to use technology to borrow and make deposits with any bank in America. Why should community banks be denied the same opportunity?"
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Image: iStock
On the purpose of the FDIC's limitations on brokered deposits:
"Folks, I think the goal here is funding transparency." (via Twitter )
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Image: Thinkstock
On how regulators can ensure banks' financial stability:
"If you want to make sure banks are financially sound, make sure you control what they do with the money, not where they got the money from."
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Image: Thinkstock
On the argument that while the Dodd-Frank Act has coincided with community bank consolidation, the sweeping 2010 law didn't cause it:
"While it is true that correlation and causation are not the same thing, but neither are they mutually exclusive. Dodd-Frank may appear to be only correlated from the halls of academia, but it sure feels like causation out here where the rubber meets the road."
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Image: Fotolia
On how the postcrisis regulatory environment may have heightened the importance of economies of scale:
"Economy of scale driving bank consolidation is not a benign free-market economic force. The need for economy of scale is forced on banks by the high fixed costs of regulatory compliance."
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Image: Fotolia
On the Consumer Financial Protection Bureau's plan to limit borrowers to three consecutive payday loans before a mandatory 60-day "cooling off" period:
"We suggest the Obama administration/regulators impose an equal restriction on the number of fat-laden double cheeseburgers each American may consume in any given period. Let's see how Americans react to that particular restriction on free choice."
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Image: Fotolia
On the best way to shift U.S. payments to a real-time or near-real-time system:
"I agree that a comprehensive Fed/NACHA solution would [take at least 10 years to implement], and I hope that never occurs. I favor independent and integrated competing networks; I believe that had also been the position of [Ripple Labs'] Greg Kidd (former Fed employee) in his Fed payments improvement study response. I think clever compliance work, rethinking existing rails, and tech can make that a reality on a more near-term basis. Check 21-related solutions and CBW [Bank's] activities are great examples." (via XRPTalk )
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Image: iStock
On an alternative way that Ripple Labs' cryptocurrency technology could be used to speed up payments in the U.S.:
"I always wonder what possibilities open for the industry if [Ripple Labs] and partners are able to provide international real-time as a more cost-effective solution than alternative U.S. domestic transfer methods. Route payments from NYC to San Fran through a German bank?" (via XRPTalk )
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Image: iStock
On a proposal for a government-backed cryptocurrency, ostensibly with no identification or know-your-customer requirements:
"Nice try, I.R.S. Well played." (via Reddit )
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