Slideshow Making Mobile Customers Pay, Mortgage-Rule Bellyaching, More: Comments of the Week

Published
  • June 21 2013, 10:45am EDT
12 Images Total

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 New York regulators' punishment of Deloitte over its review of Standard Chartered's anti-money laundering practices:

"A $10 million fine for a company with a bonus pool of $1.47 billion amounts to another slap on the wrist. After all, Deloitte did suggest ways to hide illegal money laundering from regulators. Considerable culpability in that." (Pictured: New York Financial Superintendent of Financial Services Benjamin Lawsky.)

Related Article: What the Deloitte Crackdown Means for Banks

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On the possibility that unbanked individuals won't be able to pay premiums under Obamacare:

"If the government can force people to buy insurance, then it must be able to force them to open a bank checking account."

Related Article: Obamacare Gap Leaves Unbanked in the Lurch

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Responding to another reader's comment about Bank of America's questionable refi sales pitch:

"Please don't insult used car dealers by comparing them to B of A."

Related Article: B of A's Refi Pitch a Bubble-Era Flashback

(Image: Bloomberg News)


On Sen. Elizabeth Warren supporting simpler regulations for small banks:

"Because of the Keating 5 [scandal], Congress removed itself from being involved and thereby removed all effective oversight [of regulators]. Since then, the executive branch has been running roughshod. .. If Warren is serious, she will go out and find 'small banks' to help against regulators (and their reprisals)"

Related Article: Warren Supports Simpler Regulatory System for Small Banks

(Image: Bloomberg News)

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On Consumer Financial Protection Bureau Director Richard Cordray's claim that concerns about its mortgage rule are overblown:

"I can only assume that Cordray did not grow up in one of the 5,000 rural communities around the country that are served only or primarily by community banks … We accept the credit risk from customers, but we will not accept the litigation risk outside of QM. His estimates of the impact eliminating these credits are wrong."

Related Article: Mortgage-Rule Concerns Overblown, Cordray Says

(Image: Bloomberg News)


On the argument that low barriers to entry cause bank failures:

"Exit and entry are both relevant. In many circumstances, regulators also resist exit. Resisting the exit of zombie banks leads to pricing that deters entry."

Related Article: Why Some Banks Thrived and Others Failed After the Crisis

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On Regions Bank charging for mobile banking services:

"Congratulations to Regions Bank for not giving in to the very vocal minority who believe banking should be a utility with all revenues governed or services given away. Let the market decide the value exchange for new innovations and technology."

Related Article: Banks Turn to Fees to Make Mobile Pay

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On Regions Bank charging for mobile banking services:

"Early indications point to banks following the same pattern with mobile banking as they did with electronic banking - charging fees before they establish a credible value proposition."

Related Article: Banks Turn to Fees to Make Mobile Pay

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On Regions Bank charging for mobile banking services:

"Now I expect the agencies to issue guidance that will include 'ensuring the bank is not relying on mobile banking fees as a source of non-interest income, disclosures, taking advantage of consumers who overuse the product and incur fees' … [like] the guidance for overdraft protection products and deposit advance products."

Related Article: Banks Turn to Fees to Make Mobile Pay

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On a poll putting public confidence in banks at its highest point in five years:

"Talk about putting lipstick on a pig?"

Related Article: Confidence in Banks Reaches Highest Point in Five Years: Poll

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On the Corker-Warner GSE reform bill:

"The Corker-Warner proposal is another in a long line of politically expedient interventions that actually deepens the government involvement beyond its predecessors."

Related Article: Corker-Warner Bill Retains Fatal Flaw of GSE Model

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