Readers opine on legacy core systems, the negative messaging around the Troubled Asset Relief Program, Jamie Dimon defending his Trump ties, and more.
Vintage typewriter, old rusty, warm yellow filter, I'm mediocre
Micha Klootwijk/michaklootwijk - Fotolia
On a call for banks to move on from their legacy core systems:
“Sadly, there is an asymmetry of outcomes when undertaking a core conversion, which the legacy core providers benefit from and remind banks of constantly. Nobody's stock goes up or CAMELS rating improves after a successful conversion, or so the thinking goes. Nobody's bonus doubles. But mess up a conversion and see what happens. So banks choose ‘mediocre and expensive but it works’ over and over again.”
On the appointment of a new acting comptroller of the currency to take over from Thomas Curry:
"Mr. Curry's tenure is filled with leadership and oversight failures (i.e. Wells Fargo sales/incentive disaster, London Whale, Libor scandal, etc.). I am confident that the (competent and non-politico) OCC staff are dancing in the streets! Turn up the volume!"
On 158 academics defending the Consumer Financial Protection Bureau in a letter to lawmakers:
"Actually rather amusing — 158 people who have never managed a bank or a lender, casting down their erudite opinions on the value of the CFPB from their subsidized offices in academia. I wonder how many of them have ever put their own capital at risk to start or operate a financial services business or have ever had to work under the oppressive regulatory system we use in this country? More importantly, are the marginal benefits from the CFPB worth the tremendous cost to society?"
Jamie Dimon, chief executive officer of JPMorgan Chase & Co., speaks during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, May 1, 2017. The conference is a unique setting that convenes individuals with the capital, power and influence to move the world forward meet face-to-face with those whose expertise and creativity are reinventing industry, philanthropy and media. Photographer: Patrick T. Fallon/Bloomberg
Patrick T. Fallon/Bloomberg
On JPMorgan Chase CEO Jamie Dimon defending his role as an adviser to the Trump administration:
"Chase has a CEO who is cordial, behaves like an adult and has a spine when the perpetually offended (and usually compensated by special interests) stamp their feet and put on outrage theater. Refreshing."
Businessman almost got treasure underground, but he gave up
Nomad_Soul - Fotolia
On the pitfalls of banks holding on to their legacy core systems:
"As the business landscape evolves through the utilization of new technologies, regulatory requirements, risks, and even currencies, legacy systems are not structured to even support, no less create new opportunities that are available. Lost opportunities mean lost revenues, lost customers, and lost market share. Over eighty percent of recent core decisions have resulted in outsourcing to large service providers, thus providing further proof that Banks are just throwing in the towel."
The company's Silicon Valley Bank unit reduced its loan-loss cushion by $52 million. Private-equity and VC clients have warmed to the practice of doing deals virtually, which increases lending opportunities, SVB executives said.
What's behind the unlikely First Citizens-CIT deal; ex-Trump adviser Gary Cohn predicts bleak future for community banks; midsize banks gird for loan defaults, more margin pressure; and more from this week's most-read stories.