Comments of the Week
August 24, 2012 1:23 PM
(Image: Thinkstock)
On the CFPB's proposed rules for mortgage servicing:
"By the time you 'child proof' this industry, the cost of a mortgage will drive rates into the teens. The borrowers who will be punished will be the ones who always make their payments on time (and who would never think of eating the lead paint)."Related Article: Small Servicers Would Be Hit Hardest by CFPB's Proposed Rules Pictured: Richard Cordray, director of the Consumer Financial Protection Bureau (Image: Bloomberg News)
On B of A's decision to cancel payment protection products:
"The CFPB zeroing in on Cap One's deplorable marketing of questionable credit card add-ons succeeded in stopping that bank's victimization of consumers. It also put other large card issuers on notice that they could be next. And almost immediately, another industry bad actor has stopped its marketing of abusive card products. Backbone is a critical component for a federal regulator. And it has been sadly lacking for over a decade."Related Article: B of A Cancels Payment Protection Products (Image: Bloomberg News)
On why requiring big banks to compartmentalize themselves would do no good:
"Putting the cookies in the cupboard never keeps the kids out of them … cookies kept at another house, now that works."Related Article: Make Megabanks Compartmentalize Themselves. The Rest's Up to Them (Image: Thinkstock)
On Fifth Third's 'Early Access' deposit advance program:
"This is a disgraceful product and adds to the lack of public trust in the banking industry. The fundamental question is 'How does this product help customers prosper and advance financially?' If its chief effect is to keep poor people poor and help folks move down then it does not belong in the line-up of a taxpayer-backed, too big to fail bank." Related Article: Suit Claims Fifth Third's Payday-Like Product Violates Ohio Law
On regulators:
"My experience with regulators has been they are slow to react during good times ( i.e. subprime, 125% HELOCS etc.) and then when times get bad they over react and show up to bayonet the wounded."Related Article: Listening to Regulators Can Keep Your Bank Out of Trouble (Image: Thinkstock)
On banks unloading trust-preferred securities:
"Banks who qualify under Dodd/Frank to hold TRUPS should wait for Basel III regulations to be finalized before dumping their TRUPS! Basel III is still just a proposal - plenty could change. So [in my opinion] banks should keep their powder dry before jumping through capital hoops to do something about their TRUPS."Related Article: Pressure Mounts for Banks to Unload Trust-Preferred Securities (Image: Thinkstock)
On altering the Trups compromise:
"It does not sit well that regulators are proposing by their fiat to alter the Trups compromise worked out under Dodd-Frank. It erodes faith in other compromises in [the Dodd-Frank Act], such as the idea that the consumer bureau would engage in rigorous cost/benefit analysis in their rulemakings."Related Article: Pressure Mounts for Banks to Unload Trust-Preferred Securities (Image: Thinkstock)
On Romney undoing Dodd-Frank:
"By all means, why not make even more work for banks, regulators and the poor employees that need to keep up with all the changing regs. Change them - then change them back - then change them again. Job security or job induced breakdowns!"Related Article: Romney Plan Could Undo Dodd-Frank Without Repealing It Pictured: Mitt Romney (Image: Gage Skidmore)
On Romney undoing Dodd-Frank:
"The Dodd-Frank bill should not exist. It did little to alter the greatest risks that exist today in the Wall St. banks and was in fact a proposal that had no real resistance from the large banks. Dodd-Frank was devastating to small and regional banks necessary to small business."Related Article: Romney Plan Could Undo Dodd-Frank Without Repealing It Pictured: House Representative Barney Frank and Chris Dodd (Image: Bloomberg News)
On candidates to replace Libor:
"Why don't we just resume using the U.S. Prime Rate - which was the standard for most credit arrangements here in the U.S. before banks found and switched to an index they could manipulate at will?"Related Article: Candidates to Replace Libor Are Lackluster (Image: Thinkstock)
On corporate treasurers stating big banks are not indispensable:
"The comments of corporate officers in this article show that banks are now viewed as vendors. Vendors that need to be watched closely to ensure that they have minimal opportunity to victimize their customers."Related Article: Are Giant Banks Indispensable? No, Says Big Business (Image: Thinkstock)
On how big banks are not indispensable:
"Just because the foreign banks are way too large does not mean we should accept the situation in the name of competition. The U.S. would have plenty of tools at its disposal to insist on global size reduction if it actually had the will to do so."Related Article: Are Giant Banks Indispensable? No, Says Big Business (Image: Shutterstock )
On nonbanks entering the small loan market:
"Providing small dollar loans is high cost. Banks are unable to charge appropriate rates to compensate the costs … The overwhelming majority of consumers doing business with non-bank consumer finance companies state a high satisfaction rate because of the direct, hands on relationship that banks and even credit unions cannot provide."Related Article: Federal Charter for Nonbanks Would Be Good News for Small Banks (Image: Thinkstock)
On nonbanks entering the credit card market:
"Why only allow banks to issue credit cards, seriously? Have we not seen the mess that can arise from unqualified businesses offering products that should be offered by BANKS (ie: mortgage companies, insurance companies). Really???"Related Article: Why Allow Only Banks to Issue Credit Cards? (Image: Thinkstock)
On the Treasury Department helping banks repay TARP:
"Now that the Department of the Treasury is assuming responsibility for assisting banks in repaying their TARP bailout debt, can the American public believe the agency's announcements about the 'success' of the program in restoring the health of the banking industry?"Related Article: M&T to Exit Tarp Via a $381.5M Treasury Offering Pictured: U.S. Treasury Secretary Timothy F. Geithner (Image: Bloomberg News)
On Paul Ryan:
"It is my opinion that he is a liability to Mr. Romney. Worse, though, is the fact that he is a bigger liability to the United States, as his votes have already contributed to our massive deficit. His proposals could only make things worse."Related Article: Why Paul Ryan Is Bad News for Bankers (Image: Bloomberg News)
On Paul Ryan:
"What needs more light is Ryan's detailed, articulate style and focus on supporting job's producing, small business … Ryan's vision will connect more with middle class voters once they stop and actually listen to what he has been saying about how we can create jobs."Related Article: Why Paul Ryan Is Bad News for Bankers (Image: Bloomberg News)
