'If They Are SIFIs, So Is Our Government': Comments of the Week
April 25, 2014 12:38 PM
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:
(Image: Bloomberg News)
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:
(Image: J. N. Devin, 1972)
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?"
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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:
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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."
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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."
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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:
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:
(Image: Bloomberg News)
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."
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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:
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