'Along comes this lunacy': Comments of the week

April 26, 2018 10:00 PM

Group of business people holding chat cards in raised hands

Sergey Nivens - stock.adobe.com

Readers weigh in on the action at Wells Fargo’s annual meeting, debate the idea of changing the Consumer Financial Protection Bureau’s name, chime in on a postal banking proposal and more.

An attendee walks past a National Rifle Association (NRA) logo on the exhibit floor during the annual meeting in Louisville, Kentucky, U.S., on Friday, May 20, 2016. The nation's largest gun lobby, the NRA has been a political force in elections since at least 1994, turning out its supporters for candidates who back expanding access to guns. Photographer: Luke Sharrett/Bloomberg

Luke Sharrett/Bloomberg

On the New York State Department of Financial Services calling on state-chartered banks and others to rethink ties they have with firearms-industry groups:

“Just when we thought Operation Chokepoint had been relegated to the dustbin of regulatory history, along comes this lunacy. To those banks knuckling under to this bullying, what other political corners will they allow their regulators to push them into? And at what costs to their ability to serve legal, profitable businesses? It's not the political hacks in Albany or Washington who will pay the price for these decisions.”

Related: N.Y. bank regulator warns of reputational risk from working with NRA

A Wells Fargo & Co. sign sits on display outside the company's offices in San Francisco, California, U.S., on Tuesday, April 27, 2010. Wells Fargo & Co., the fourth-largest U.S. bank by assets and deposits, may raise its dividend once capital levels satisfy regulators and if the economic recovery continues, said Chief Executive Officer John Stumpf. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

On Wells Fargo's recent $1 billion fine for lapses in its auto lending and mortgage businesses:

“Textbook case for how a sales at all costs culture leads to nowhere good. Again, where were the regulators? What good is an in-house examiner if they don't find anything or why didn't they stop the bank from these practices.”

Related: Wells' $1B penalty: Regulators make good on Trump tweet

On an argument that Wells Fargo's top executives should be held accountable for their actions in connection with the $1 billion penalty:

“The executives who made the decisions to screw customers are still there. The bank needs to be broken up and New leadership hired.”

Related: Penalties levied against Wells Fargo miss top execs. Again

Mick Mulvaney, director of the Office of Management and Budget.

On acting Director Mick Mulvaney’s efforts to change the CFPB’s name to the Bureau of Consumer Financial Protection:

“If this isn't the height of pettiness, I don't know what is.”

Related: What's in a name? For Mulvaney's CFPB, quite a lot

On California State Treasurer John Chiang calling for Wells Fargo's Tim Sloan to be removed as chief executive:

“The most pompous person in the room was California State Treasurer John Chiang. Pure politician trying to get his 15 minutes of fame.”

Related: 'Wells Fargo, you’re the worst’: Scenes from testy annual meeting

Senator Kirsten Gillibrand, a Democrat from New York, speaks during a news conference unveiling bipartisan legislation to prevent sexual harassment in the workplace on Capitol Hill in Washington, D.C., U.S., on Wednesday, Dec. 6, 2017. Seven female U.S. senators called on fellow Democrat Al Franken to resign Wednesday following allegations, and his admission in at least one case, that he groped or sexually harassed women. His office said he will make an announcement on Thursday. Photographer: Zach Gibson/Bloomberg

Zach Gibson/Bloomberg

On Sen. Kirsten Gillibrand, D-N.Y., unveiling a bill that would empower the U.S. Postal Service to take deposits and make loans:

"She wants American taxpayers to directly assume the credit risk of lending to consumers who currently don't qualify for credit from banks and credit unions? How's that working for student lending?"

Related: Gillibrand aims to 'wipe out' payday lenders with postal banking bill

José-Loyer-72 - stock.adobe.com

On the challenges banks and fintech companies encounter in trying to work together:

"Fintech's ability to innovate is still a challenge especially when state laws require licensing which may or may not fit the innovation. Fintechs who partner with banks reveal the excruciating compliance exercise and low risk appetite by banks to innovate. More needs to be done at the legislative and regulation levels to drive innovation."

Related: Banks are from Mars, fintechs are from Venus: Bridging the matchmaking gap

US congress building in Washington DC, with blue sky

Gang - stock.adobe.com

On the comments about lobbying and campaign contributions that have the CFPB's Mick Mulvaney in hot water with Democrats:

"This is only a 'gift to democrats' because so many politicians and political proponents like to twist the truth into a lie. All politicians should be ashamed that they allowed this to be the norm in Washington."

Related: Mulvaney’s unexpected gift to Democrats

Renovacio - stock.adobe.com

On growing questions over whether credit unions should be taxed like banks:

"Credit Union arguments are smoke and mirrors. They offer low rates to car dealers for indirect auto paper--but these low rates do not go to consumers, they go to auto dealers. Their profits are lower because they are inefficient---high overhead, large buildings and officer salaries and benefits. Commercial lending does not help small consumers yet they do a lot and want to do more. it is time to level the field and let them compete with banks using the same tax rates."

Related: Do credit unions still warrant a tax exemption?