Slideshow 'Big Banks Act Like Megatron': Comments of the Week

Published
  • November 22 2013, 9:00am EST

American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the Comments sections of AmericanBanker.com articles.

(Image: Thinkstock)


On how to rein in "too big to fail" banks:

"Hand banking regulation back to the states and end interstate branching … State regulation tolerates far less risk. Look at the insurance industry as an example. It is far harder to conquer 50 regulators than one."

Related Article: Why Bankers and Regulators See Very Different Future for Giant Banks

(Image: Thinkstock)

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On how to rein in "too big to fail" banks:

"The issue here is the power of the corporation as person. Amending the 14th Amendment of the U.S. Constitution … will go a long way toward reestablishing the people as the ruling body in this country, and corporations as they should be: servants to the people."

Related Article: Why Bankers and Regulators See Very Different Future for Giant Banks

(Image: AdamTHEO)


On a case for allowing Bitcoin to flourish:

"The very reasons stated for leaving Bitcoin alone are the very reasons government will not leave [it] alone."

Related Article: Five Reasons Washington Should Leave Bitcoin Alone

(Image: Bloomberg News)


On why Washington should let Bitcoin flourish:

"It is critical that as we support innovators and disruptors in other fields that ultimately move markets and benefit customers … You cannot tell me there will be any more corruption issues with Bitcoin then we see in other major currencies."

Related Article: Five Reasons Washington Should Leave Bitcoin Alone

(Image: Thinkstock)

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On the promise of digital currencies:

"It's common to be fearful of the unknown, and wholly-electronic currency is unknown. The ability to do business faster and cheaper is tantalizing, though, and a discussion that shouldn't be avoided just because of the [anti-money laundering] compliance fears." (via LinkedIn)

Related Article: Five Reasons Washington Should Leave Bitcoin Alone

(Image: Thinkstock)


On a prediction that Bitcoin will be undone by the selfish traits of human beings:

"You should have more faith in humanity … People ruin everything. But they also do amazing good, too."

Related Article: The Bitcoin Delusion

(Image: Fotolia)


On the Consumer Financial Protection Bureau warning of a student loan debt crisis:

"As usual, government created the problem and government now is trying to dictate the solution."

Related Article: Student Loan Market Headed for Crisis, CFPB Warns

Pictured: Richard Cordray, CFPB Director (Image: Bloomberg News)

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On bank mergers of equals gaining popularity:

"Regular mergers are hard enough to do. Unless the two companies involved really are equals in terms of asset size, asset quality, net worth, earnings power, and perhaps most importantly culture, [mergers of equals] are very difficult to pull off successfully. Buyer beware."

Related Article: Bank Mergers of Equals Gaining Popularity Across U.S.

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On the impending departures of Sarah Bloom Raskin and Elizabeth Duke from the Federal Reserve Board:

"The loss of these two will cause a large vacuum of actual banking experience on the Board of Governors."

Pictured: Sarah Bloom Raskin

Related Article: Fed Board Needs an Experienced Bank Supervisor

(Image: Bloomberg News)


On big banks thwarting a proposal to update the U.S. payments system:

"[Banks] can bounce a check on consumers in an afternoon but direct deposit takes two days. They don't want to make your money available to you faster."

Related Article: Message to Banks: Speed Up Payments or Fed Will Take Charge

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On Umpqua CEO Ray Davis' attempts to make branches relevant:

"It is always nice to see that the banking industry does have some thoughtful leaders left. Too bad that half the industry is in the hands of only a few bankers that act as though they are Megatron."

Related Article: Making Branches Relevant: Umpqua's Ray Davis Discusses 'Revolution' in New Book