'Complete Foolishness Driven by Arrogance': Comments of the Week
October 28, 2016 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 our social media platforms.
On Wells Fargo's unprecedented reputational crisis:
"Their misguided culture caused it. By turning a blind eye to dishonest, fraudulent activity because the result satisfied their goals, management took on more risk than any single 'bad' credit they could possibly put on their balance sheet. Complete foolishness driven by arrogance. IMO the arrogance of a bank this size is created by a single pervasive dogma summed up in four little letters TBTF."
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On B of A downplaying the odds of it having a Wells-Fargo-style scandal:
"B of A is no different. The contrarian in me says they're next."
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On Lending Club's prospects as an auto lender:
"Lending Club entered the personal loan market at a very different point in the credit cycle, when unemployment and chargeoffs were elevated and lenders were retreating. That is not a good gauge for its prospects in auto lending. Losses are well below normal but rising, and banks and credit unions remain committed to direct auto lending, including refinancing, even as some pull back in indirect. And what lender doesn't think that they are 'taking a very conservative approach to underwriting?' Time will tell."
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A retort to the idea of mandating paid family leave:
"Can you imagine the devastating impact of a law like this would have on 70% of business in America? I'm all for equal pay and position for all qualified candidates regardless of gender. As is true in 95% of all situations, government regulation is NOT the answer."
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On CFPB Director Cordray warning banks not to limit access to financial data by third parties working on behalf of the customers:
"Will we also require Google, Facebook, mobile carriers, and the IRS to provide third parties free and unfettered access to their customers'/taxpayers' data?"
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On a new digital-only bank designed for Gen X, rather than millennials:
"Hallelujah! The 'skipped' generation finally gets acknowledged."
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On CFPB's calls to make financial data accessible:
"I'm 'gravely' concerned that the CFPB just wants to control our entire industry and every aspect of how we operate. One thing that we have found out in the banking industry is that when it comes to usage of technology, especially leading-edge technology, the customer is NOT always right and can be putting their data and information up for grabs."
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