Comment Icon Two Bubbles
Readers react to President Trump considering a credit union regulator to head of the Consumer Financial Protection Bureau, debate a delay for top banking nominees, opine on the value of blockchain, and more.
On an argument that blockchain is less useful than its boosters believe, in part because people don't want to pay with cryptocurrencies like bitcoin:
“Agreed ! Nobody wants to pay with Bitcoin... BUT there are many use cases where people want a better experience for digital payments. The banks/visa/mastercard/venmo/paypal are just not there yet... Blockchain is worth the experiment in my opinion.” (via Twitter)

Related: Don't believe the hype: There are no good uses for blockchain
Fed Chair-designate Jerome Powell with President Trump
On news that the White House will have to resubmit nominations for heads of the Fed, FDIC and others:
"Incompetence reigns in the Senate. Do your job! Holding up nominees like Jerome Powell and others is an embarrassment and a travesty."

Related: Procedural move will delay top Fed, FHA, FDIC nominations
A monitor displays Equifax signage on the floor of the New York Stock Exchange.
On calls to make sure Equifax stays in business despite its massive data breach:
“I don't think the question is ‘will Equifax survive?’ It is ‘how will Equifax respond?’ - and I believe they will invest heavily in technology, security, and infrastructure and come out looking like what the author and commenters are calling for. As for allowing consumers to opt-out or opt-in - I say careful what you wish for - lenders would be stingier with incomplete access to data - higher rates, less accessibility. Let's not let consumer protection push safety and soundness to the curb.”

Related: Like it or not, we need Equifax
J. Mark McWatters
On the Trump administration’s consideration of J. Mark McWatters to lead the CFPB, which is stoking fears among bankers:
“Re: concern over someone perceived to be an advocate of the governed industry, would bankers rather the opposite? Just sayin'. Re: someone who advocated exempting CUs from CFPB supervision might unilaterally exempt them if in charge of the CFPB, that can't happen without an act of Congress to amend the Dodd Frank Act. Re: differences in regulation between CUs & banks, CRA isn't one of them. CFPB does not have domain over CRA. Re: smoother confirmation, get real!”

Related: Bankers anxious as Trump mulls credit union regulator for CFPB
Another reader weighs in on the possibility of McWatters, chairman of the National Credit Union Administration, heading the CFPB:
“This is outrageous! McWatters hates community banks. Every action he took at NCUA was to try to put them out of business. He is a part of the credit union movement and has a deeply held belief that credit unions should be providing the financial services in this country - not banks. The folks inside the beltway can be as polite as they want, this is an act of open warfare against community banks. You are putting an enemy of community banking in the most powerful, unaccountable seat in D.C..”

Related: Bankers anxious as Trump mulls credit union regulator for CFPB
On whether the Senate's bipartisan regulatory relief bill can remain focused on community banks to maintain its broad backing:
“The truth is all banks, even the dreaded ‘megabanks,’ need regulatory relief if the banking system is to attain optimal efficiency and effectuate needed innovation. However, Fine is right about keeping this compromise bill clean to maintain bipartisan support. Let's not forget that Sen. Brown was not able to come to terms with Sen. Crapo, and Sen. Warren will eagerly pounce at any sign of easing of regulations on the big banks.”

Related: Dear Congress: Don’t drop the ball on reg relief
On the possibility of using blockchain in real estate:
“Poor ‘recordkeeping’ wasn't a cause of the financial crisis. Would a blockchain have prevented people from lying about their incomes on mortgage applications? Prevented collusion between lenders and appraisers? Prevented mortgage applicants from claiming investment properties were their principle residences? Prevented lenders from offering teaser rates? Prevented investment bankers from cramming subprime loans into mortgage securities? Encouraged ratings agencies to perform due diligence? Etc.?”

Related: Could blockchains replace banks in real estate lending?
On banks using behavioral economics to woo new customers:
“It's called marketing. Been with successful businesses since . . . pretty close to forever.”

Related: How banks use behavioral economics to win over customers
Photo of handshake deal torn in half.
On an argument that the Dodd-Frank Act is likely to remain largely in place, despite promises by President Trump to wipe it out:
"No, it's not... Dodd-Frank has completely ruined the banking sector, it's manipulated capital into government preferred investments, and has left smaller banks struggling and shutting down at record pace while big banks grow bigger & bigger. It did the opposite of what they said." (via Twitter)

Related: Dodd-Frank is here to stay