Slideshow Comments of the Week: Mobile Payment Skepticism; No Such Thing as Free Checking; Dubious Refi Pitch

Published
  • June 14 2013, 8:00am EDT
14 Images Total

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.

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On a Bank of America refi pitch that would raise the customer's interest rate and add 10 years to the loan term:

"The B of A CEO should have everyone involved in this come to his office immediately in one group ... If a few heads do not roll, then it is time for a new CEO."

Related Article: B of A's Refi Pitch a Bubble-Era Flashback

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On a Bank of America refi pitch that would raise the customer's interest rate and add 10 years to the loan term:

"In this case, the chairman needs to tend the lobby popcorn machine. He would get less bad press."

Related Article: B of A's Refi Pitch a Bubble-Era Flashback

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On a regulator's claim that FFIEC's social media guidance is just that, and not a requirement:

"To say that … guidance 'doesn't create any new obligations or burdens' is either naive or disingenuous. Banks are routinely told by examiners that the Management component of their CAMELS rating will be downgraded if guidance is not strictly adhered to."

Pictured: Elizabeth Khalil, a senior policy analyst of supervisory policy at the FDIC

Related Article: Author of FFIEC's Social Media Guidance Rebuts Objections


On a regulator's claim that FFIEC's social media guidance is just that, and not a requirement:

"'You can't technically violate guidance.' Did everyone just read that?"

Related Article: Author of FFIEC's Social Media Guidance Rebuts Objections

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On FFIEC's social media guidance:

"It's not a question of 'violating guidance'. It's a question of being up to speed with the new technology and communication platform for receiving new customers and retaining existing ones."

Related Article: Author of FFIEC's Social Media Guidance Rebuts Objections

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On the suggestion that banks regulators do FDA-style product vetting:

"I would favor any proposal, which tends toward defining the banking business model. Banking 'innovation' isn't innovation at all. It is too often just shady deal-making."

Related Article: Should Bank Regulators Do FDA-Style Product Vetting?

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On the widespread use of the terms 'underserved' and 'underbanked':

"These terms are reflective of the hopelessness that pervades some areas of our society. Why not 'Financial Services to Emerging Neighborhoods'? Or some other hopeful and energetic terminology? … I am sure the marketing talent in the industry can do better."

Related Article: Four Crucial Questions About Banking the Underbanked

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On the Consumer Financial Protection Bureau finding that overdraft programs hurt consumers:

"Overdraft services can be expensive, and those that need them pay more fees than those that don't … Is it worth it to the consumer? I'll choose to let them decide as long as the institution lets them know the rules and costs."

Related Article: Overdraft Programs Hurting Consumers, CFPB Finds

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On the idea that the CFPB is all-powerful:

"Consumer protection versus safety and soundness … Who will win? Soon enough the battle lines will be drawn as industry regulators begin to understand the full implications of the QM and other CFPB rulings."

Related Article: The Myth of the All Powerful CFPB

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ON PNC eliminating its free checking program:

"Agree or disagree with interchange and overdraft fees, banks' legacy costs are not going away. Fee reductions in one area will cause increased fees in another - simple arithmetic."

Related Article: PNC to Eliminate Free Checking

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On MasterCard executive Theodore Iacobuzio's belief that mobile banking is going mainstream:

"The 'experts' keep saying that the mobile payments train is leaving the station and we'd better get on it, but they don't know where the station is, how to buy a ticket or where the train is going."

Related Article: Mobile Banking Is Mainstream - What About Security, ROI, Payments?

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On an assertion that an increase in enforcement actions is a step in the wrong direction:

"Until someone is actually sent to prison for actions that led to the collapse in 2008, we can't really talk about an 'increase' in enforcement actions. The penalties levied thus far, while significant, still represent a very minor slice of profits, not exactly a deterrent in anyone's eyes."

Related Article: Increasing Enforcement Actions Is a Move in the Wrong Direction

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On a call to heed Fed Chairman Ben Bernanke's warnings about interest rate risk:

"Typical bureaucratic bantering. Create a massive forest fire and then caution everyone to be careful of the flames."

Related Article: Banks Should Heed Bernanke's Warning on Interest Rate Risk

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