Slideshow 'Is the Government on a Fishing Expedition?': The Week's Best Quotes

Published
  • August 27 2013, 10:13am EDT
13 Images Total

The most notable quotes from American Banker stories of the previous week. Readers are encouraged to add their own observations in the Comments fields at the bottom of each slide.

(Image: Thinkstock)


On why he left Wells Fargo (WFC) after it stopped selling delinquent consumer debt to outside collections agencies:

"It just seems like regulators are coming down on the space."

—Alex Dunlap, the former head of debt sales for Wells Fargo, who has joined Flock Specialty Finance

Related Article: Wells Fargo's Head of Debt Sales Departs After Bank Halts Sales

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On a possible delay in implementing the qualified mortgage rule by the Consumer Financial Protection Bureau:

"A lot of community banks are exiting the residential mortgage business because it's too compliance driven. 'Credit crunch' might be too strong of a word, but it might create fewer lending options for people."

—Raul G. Valdes-Fauli, the president and CEO of Professional Bank, a $177 million-asset bank in Coral Gables, Fla.

Related Article: Lenders Press CFPB to Delay Qualified Mortgage Reg's Start Date

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Richard Cordray on the shot in the arm provided his Senate confirmation as the CFPB's permanent director:

"It's been a morale boost here. And again, the fact the vote was so strongly bipartisan was a great reflection on everybody here. ... It redoubles their enthusiasm to continue doing good work."

Related Article: CFPB's Cordray on Senate Confirmation, QM and Future Challenges

(Image: Bloomberg News)


On trying to spot the cause of the next financial crisis before it's too late:

"It's a real challenge to identify risk and address it when it's building, especially when it's making lots of money. ... We need to make sure that we embed the lessons learned from the crisis into the fabric of our supervisory program."

—Doreen Eberley, director of the FDIC's Division of Risk Management Supervision

Related Article: Eight Questions for the FDIC's Head of Supervision

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On the government's interest in pursuing False Claims Act cases against mortgage lenders:

"Is the government on a fishing expedition? Or maybe [it's] simply moved the goalposts in the wake of the mortgage banking debacle."

—Jeff Davis, managing director of the financial institutions group at Mercer Capital

Related Article: First Horizon, SunTrust Face New Round of Mortgage Scrutiny


On whether regulators will hold banks accountable for the ways in which employers use payroll cards:

"I don't think banks want to have the job of being the compliance officer to businesses. But it's important that they help their clients understand the regulations out there and help them with the appropriate disclosures."

—Terry Maher, general counsel for the Network Branded Prepaid Card Association

Related Article: A Clash Over Payroll Cards


Stephen Marsh, chairman of the $3.1 billion-asset Enterprise Financial Services in St. Louis, on why it was important for his bank to fully repay its $35 million in Tarp aid:

Tarp "was an efficient source of capital for us at a time when the credit markets were risky. It worked effectively for us … and we wanted a good return for the government."

Related Article: Treasury Likely to Accept Bigger Discounts in Tarp Auctions

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Kenneth Lehman, an investor in Delmar Bancorp, a $432 million-asset bank in Salisbury, Md., on why he agreed pay $6 million in cash and cancel 5,000 shares of preferred stock for a 40% stake:

It "had a leaky tire during the recession … but the wheels didn't fall off. They just need a little bit of tangible common to fix their situation."

Related Article: Maryland Bank Provides Possible Road Map for Tarp Exits


U.S. Attorney Jenny Durkan of the Western District of Washington on why she prosecuted James Bishop (who pled guilty), the former head of the failed Summit Bank in Burlington, Wash., for hiding millions of dollars in loan losses:

"Our economy depends on every bank following the rules."

Related Article: Former Summit CEO Pleads Guilty to Hiding Bad Loans

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Rick Lyon, the head of commercial real estate banking for Capital One, on the challenge of preserving the independent spirit of a niche lender it company has agreed to buy:

"I've always been a fan of the medical phrase, 'Do no harm.'"

Related Article: Capital One to Go Slow in Absorbing Niche Lender Beech

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On why bankers may increasingly try to remain in their jobs after selling to competitors:

"A lot of bankers that are pretty sharp see that … they are not going to get terribly rich in selling."

—Lynn Fuller, CEO of Heartland Financial USA

Related Article: Bank Executives Look to Stick Around After Selling Out


Joseph Smith, monitor of the national mortgage settlement, on his view that JPMorgan Chase (JPM) and Bank of America (BAC) and other banks are not yet out of the woods in terms of complying with the terms of their $25 billion settlement:

"This information is self-reported by the banks and will not be credited under the settlement until … I confirm their work."

Related Article: B of A, JPM Report Fulfilling Mortgage Settlement Obligations

(Image: Bloomberg News)