'Let the People Decide How Many Banks There Should Be': Comments of the Week
December 6, 2013 9:31 AM
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 housing nonprofit's demands that banks pay settlements over unproven racial bias claims:
"What ever happened to the principle of not paying ransom to terrorists?"
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On government funding for the nonprofit that's demanding banks pay settlements over unproven racial bias claims:
"Bank stickups should not be sponsored by the government. FDIC, where are you?"
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On the revolving door between the housing nonprofit and the Department of Housing and Urban Development:
"Shocking, absolutely shocking. Imagine the outcry if a banker went to work for a regulator."
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On an Amish bank setting the standards for future bank applications:
"Really? Does anyone else see the irony in that for regulators?"
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On regulators vetting de novo charter applications more strictly than in the past:
"We all know what a systemic threat small banks have been and I guess Washington wants to avoid another crisis."
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On the assertion that there are too many U.S. banks:
"Let's let the people who use banks decide by their own financial decisions how many banks there should be and of what size and shape."
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On whether there should be fewer small banks:
"The big banks are consistently validating the business models of community banks."
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On whether community banks are toast:
"Community banks need to be freed to serve their customers and communities, not handcuffed by rules and regulations that were intended to curb abusive practices by a few large banks."
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On U.S. banks lagging their foreign counterparts in how quickly they process electronic payments:
"America is already knocking on the door of this technology. Dwolla.com and ClearXchange.com have both created P2P instant payment networks. It is NACHA's [the Electronic Payments Association] place to lose this opportunity. There is no reason we cannot have a fully functioning unified network across the nation."
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On who should build a better U.S. payments system:
"The Federal Reserve should be a major player. If left to the three-to-six largest institutions in America, a system could be built, but to the disadvantage of small players who could be priced out of using the system."
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On a call for banks to avoid an either/or mindset regarding mobile banking:
"Banks continue to hope that every new payment mechanism and delivery channel will replace everything that has come before. They consistently ignore the fact that consumers consider all payment and delivery options as incremental, not substitutes."
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On the digital banking's role in eliminating teller jobs and adding tech jobs:
"Unfortunately, the more 'high tech' the employee is the more [of a] challenge it will be for them to become 'high touch' and successful in financial assistance."
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On a call to keep the forthcoming Volcker Rule simple:
"Forget the Volcker Rule; it's a red herring. Restore the original Glass-Steagall bill. It is the only measure which will actually restore the banking system as a necessary and useful component of the economy."
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On the notion that markets could help the Fed wind down a 'TBTF' institution via is reaction to disclosures that it's risky:
"There is one critical flaw [with this line of thinking]. It presumes that the Fed will do its job."
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