‘Financial reports must have been fictional’: Comments of the week

December 21, 2017 10:00 PM

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‘Financial reports must have been fictional’: Comments of the week

Readers sound off on Mick Mulvaney’s plan to hire political appointees at the Consumer Financial Protection Bureau, question what’s behind the failure of Washington Federal Bank for Savings in Chicago, react to an argument that Equifax must endure, and more.

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On why Washington Federal Bank for Savings in Chicago failed after reporting such strong financial metrics:

“Positive earnings, 25% capital ratio, no reported non-performing loans and then KABOOM? You have to wonder about their auditors! you also have to question the effectiveness of the regulatory oversight! The financial reports must have been fictional and none of the safety nets seemed to work. Scary stuff.”

Related: Why did such a seemingly strong bank fail?

Los Angeles City Hall and Grand Park

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On the Los Angeles city council wanting to impose new requirements on banks to disclose whether they set individual or branch-level sales goals:

“This is patently wrong-headed; a rejection of objectives and accountability.”

Related: L.A. warns banks: Don’t set sales goals if you want city's business

Mick Mulvaney, director of the Office of Management and Budget (OMB), listens to a question during an interview at the Securities Industry And Financial Markets Association (SIFMA) annual meting in Washington, D.C., U.S., on Tuesday, Oct. 24, 2017. SIFMA represents the U.S. securities industry including broker-dealers, banks and asset managers with nearly one million employees providing access to the capital markets. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

On Mick Mulvaney announcing plans to hire political appointees to work at the CFPB:

“How is what Mulvaney plans to do any different at all from what Cordray did when he filled nearly every mid level and senior position with persons with very strong political ties to the former administration, even filling several senior positions with persons straight out of the Obama White House. So what is so different about what Mulvaney wants to do?? And Cordray also stocked up on consumer advocates straight from the top consumer groups! Not exactly impartial would you say?”

Related: Can CFPB’s Mulvaney bring politicos to independent agency? Absolutely

A monitor displays Equifax signage on the floor of the New York Stock Exchange.

A monitor displays Equifax Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Sept. 8, 2017. The dollar fell to the weakest in more than two years, while stocks were mixed as natural disasters damped expectations for another U.S. rate increase this year. Photographer: Michael Nagle/Bloomberg

Michael Nagle/Bloomberg

Disagreeing with the notion that Equifax must stay in business despite its massive data breach:

“Sounds like the author is considering Equifax too big to fail. Don't give up on the market to provide a better solution than what we currently have. Let this run its course.”

Related: Like it or not, we need Equifax

Out of business note printed on paper hanging on rope with clothes pins

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Another reader agrees that Equifax may not be worth saving:

“Any company that can't protect consumer information deserves to go out of business. Consolidation of the industry isn't the only alternative if Equifax ceases to exist. With today's technology and innovation, the market could deliver a better mouse trap. Regulations should allow consumers to elect which reporting agencies may possess their data, for which the consumer should be paid up front and again if the data is breached, with predetermined terms.”

Related: Like it or not, we need Equifax

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On calls for Congress to kill the CFPB’s payday rule:

“So long as Regulators allow banks to victimize consumers with Overdrafts instead of making small loans -- there is an ABSOLUTE need for Payday Advances.” (Via Twitter)

Related: CFPB's payday rule will hurt consumers. Congress must act to stop it