Making Mobile Customers Pay, Mortgage-Rule Bellyaching, More: Comments of the Week
June 21, 2013 10:45 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 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.)
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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."
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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."
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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)"
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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."
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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."
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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."
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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."
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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."
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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?"
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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."
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