Slideshow 'If They Are SIFIs, So Is Our Government': Comments of the Week

Published
  • April 25 2014, 12:38pm EDT

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 description of Fannie Mae and Freddie Mac as "systemically important" financial institutions:

"If they are a SIFI, so is our government."

Related Article: Fannie and Freddie Are Obviously SIFIs

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On a proposal to make payday lending more efficient and less expensive:

"As long as the mindset of the regulators is to protect the consumer at all cost — and that IS the mindset of the regulators — this will go nowhere."

Related Article: How to Transform Payday Lending

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On what is driving the demand for short-term, payday loans:

"How much is 'instant gratification and poor planning' and how much is just near-poverty wages? How much demand would be removed by a minimum wage that had the same purchasing power it had 40 years ago?"

Related Article: How to Transform Payday Lending

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On how to end demand for payday loans:

"It is a very simple step to get rid of payday lending … lower overdraft fees to $5 and under. Payday lending exists because of the opportunity to undercut … overdrafts."

Related Article: How to Transform Payday Lending

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On Sen. Elizabeth Warren's new memoir:

"It's hard to argue with her comments about being in Washington being like 'Alice in Crazy Land.' Unfortunately, [Warren] and the CFPB would fit into the story better as additional characters in the crazy land, not as Alice."

Related Article: Seven Takeaways for Banks from Warren's New Memoir

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On a call for the industry to support phased-in, same-day ACH payments:

"Unless the banking industry in the U.S. takes action, it will wonder where the cheese went 10 years from now."

Related Article: It's Time for the Industry to Embrace Phased-In, Same-Day ACH

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On two fired Certus Bank executives filing a lawsuit, alleging investors conspired over their dismissal:

"As if (alleged) 'improper actions' by some directors excuses poor financial performance, self-dealing, conflicts of interest, and extravagant spending. Investors and directors were fully justified in 'conspiring' to dismiss them." (Pictured: Milton Jones (left) and Walter Davis)

Related Article: Fired CertusBank Executives File Lawsuit Against Company, Investor

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On the assertion that the Justice Department's 'Operation Choke Point' is out of control:

"Where there is illegal activity, then the enforcement agencies should take enforcement action … The problem with Operation Choke Point is that it would have banks choke off access to finance where there is no enforcement lead, no enforcement action, no charges of illegality." (Pictured: U.S. Attorney General Eric Holder)

Related Article: Operation Choke Point': Way Out of Control

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On a call for greater transparency at big banks:

"Large bank financial statements are still not as transparent as they should be particularly with regard to counterparty risk and how the bank and all its affiliates would resolve themselves in a crisis."

Related Article: What Bank Earnings Coverage Should Focus On

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On a call for greater transparency at big banks:

"Amazing to me that banks do not release details of leverage calculations, but just give rough guidelines on where these ratios are. SEC needs to push for more disclosure in these areas."

Related Article: What Bank Earnings Coverage Should Focus On

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