'McWatters is a Republican version of Cordray': Comments of the week

May 17, 2018 10:00 PM

Readers react to Wells Fargo’s CEO slamming the media, weigh in on regulatory relief, opine on gambling and payments and more.

Tim Sloan, chief executive officer and president of Wells Fargo, arrives to testify before a Senate Banking, Housing and Urban Affairs Committee hearing in Washington.

On Tim Sloan, Wells Fargo’s CEO, claiming many of the negative headlines that have been written about the bank aren't true:

“Fake news? Is that anything like fictitious credit card accounts?” (via Twitter)

Related: Wells Fargo's Sloan says don’t believe the negative headlines. Really?

A Wells Fargo & Co. sign sits on display outside the company's offices in San Francisco, California, U.S., on Tuesday, April 27, 2010. Wells Fargo & Co., the fourth-largest U.S. bank by assets and deposits, may raise its dividend once capital levels satisfy regulators and if the economic recovery continues, said Chief Executive Officer John Stumpf. Photographer: David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

Another reader reacts to Sloan dissing media reports during the bank’s annual investor day:

“He just doesn't get it. Talk about inside-the-castle group-think..."

Related: Wells Fargo's Sloan says don’t believe the negative headlines. Really?

On fresh scrutiny of J. Mark McWatters, a credit union regulator, ahead of his potential nomination to head the Consumer Financial Protection Bureau:

"A federal judge just ruled that McWatters pushed a rule that was manifestly contrary to federal law. McWatters is a Republican version of Cordray. The ruling was every bit as damning as PHH. Nominate someone like Mulvaney who will follow the letter of the law!!!!"

Related: McWatters' CFPB bid hasn't even been announced. Is it already in trouble?

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On the danger of community banks getting too much regulatory relief:

“Community banks did not deserve the draconian regulatory regimen put in by Dodd Frank nor was it contemplated that that law would have such a perverse effect on community banks. The only thing we ‘deserve’ is to let us serve our customers without so much red tape...restoring some sense of normalcy to what we do for our communities.”

Related: Small banks will get reg relief. Do they deserve more?

A close up of the capital building with an American flag

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On Tony Reardon, president of the union representing employees at the CFPB, saying the agency should not refuse to “use the revenue it is entitled to use in order to force a downsizing”:

“‘Entitled to use funding’ to continue its bloated, inefficient and largely redundant mission?? Seriously? How about instead an agency which seeks to regulate ONLY that which is not being effectively regulated by other agencies today. That would be completely acceptable to bankers and a good use of taxpayer dollars.”

Related: CFPB's union ready to battle Mulvaney as job cuts loom

On the banking implications of a recent Supreme Court decision on sports betting:

“I can see it now....the Protect Credit Card Gamblers from Themselves Act. Mr. X, we've noticed you haven't won a wager in sometime and you're bumping up against your credit limit. Per our terms & conditions, because you've lost five wagers in a row, we're terminating your credit line. Have a nice day.”

Related: Sports gambling is next hot-button issue for banks

Mick Mulvaney, director of the Office of Management and Budget (OMB), speaks during a press briefing at the White House in Washington, D.C., U.S., on Friday, Jan. 19, 2018. Federal government funding runs out at midnight Friday. Legislation to extend the deadline passed the House on Thursday and is set for a showdown in the Senate Friday, in which Democrats are poised to block the bill. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

On acting CFPB Director Mick Mulvaney saying he will take another look at the Qualified Mortgage rule:

"It’s just a fact that commercial bank portfolio loans did not cause the finanacial crisis or even add to it. These portfolio loans performed consistent with many prior recessions. The ability to repay rules only prevents banks from making mortgage loans to its deserving customers—-no one wins in this rule—-get rid of it for portfolio loans backed by bank capital and rewrite for others."

Related: Mulvaney vows to 'bring sanity' to Qualified Mortgage rule

Mortgage concept. Financial agent complete wooden model of the house with last piece with text mortgage. Wide banner composition with bokeh background.

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Another reader weighs in on CFPB's plans to review the QM rule:

"I agree that many parts of CFPB were not unlike a yelp review for financial firms and they took credit for Wells when it wasn't their investigation that uncovered problems, however, the pendulum had swung too far toward easy credit in mortgages and ability to repay is an important protection for citizens in a country that scores so low in basic math and it's just the right thing to do."

Related: Mulvaney vows to 'bring sanity' to Qualified Mortgage rule

Central network connection business concept as a group of diverse ropes connected to a circle central rope as a network metaphor for connectivity and linking to a centralized support structure.

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On a new data-sharing framework that affects all fintech companies and banks:

"Agreed — THE central issue in the 21st century financial services ecosystem" (via Twitter).

Related: Who’s on the hook for a hack? Aggregators team up on answer