Slideshow 'Might as Well Start Paying the Fines Now': Comments of the Week

Published
  • February 06 2015, 7:30am EST
11 Images Total

American Banker readers share their views on the most pressing banking topics of the week. Comments are excerpted from reader response sections of AmericanBanker.com articles and from our social media platforms.

Image: iStock


On a new 'safe student account scorecard' from the Consumer Financial Protection Bureau that favors accounts offering free money orders or e-checks:

"Most Internet banks don't even offer money orders. I suppose they might as well just start paying the fines now."

Related Article: 'Plain Vanilla' Student Account Plan Limits Choice, Innovation

CFPB Director Richard Cordray, Image: Bloomberg News

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On New Jersey legislators looking to make the state more attractive to digital currency businesses:

"Anytime any sector looks profitable every state claims to be a 'haven' for it." (Via Twitter.)

Related Article: New Jersey Eyes Bill to Lure Digital Currency Businesses

Image: iStock

On a recommendation that regulators use capital requirements as a tool to force megabanks to downsize:

"Can a bank that is small enough to fail adequately meet the needs of the largest businesses and compete with large banks based in other nations? We really need to answer that question before executing the largest banks in the U.S."

Related Article: The Mission Regulators Forgot: Ending TBTF

Image: Bloomberg News

In response to the argument that large banks serve a purpose that smaller financial institutions cannot:

"A consortium of non-systemic banks can serve the borrowing needs of a large [multinational corporation] with regard to a loan. If it's equity capital they need, they can go to the capital markets using several investment banks. I think a better question is: What is our priority as a nation? Allowing banks to be so big that we 'collectively' (no matter how poorly they are managed) treat banks and their management as a special class and support their existence into perpetuity? Or do we simply value equity (in law) and treat every entity the same under a capitalist system whereby failure is allowed and is actually an acceptable, correcting feature of the system."

Related Article: The Mission Regulators Forgot: Ending TBTF

Image: iStock

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On a suggestion that regulators revise bank control rules to ease restrictions on private equity investments in banks and bank holding companies:

"It is also worth noting that these investment hurdles only affect mid-size and smaller banks. Institutional investors of all kinds can invest billions in the largest banks without getting near the control threshold. This gives large banks a significant advantage when new capital is needed and has become a significant factor in the growth of the largest banks."

Related Article: High Time to Revisit Bank Control Rules

Image: Fotolia

On the dangers of having a bank leader who's uninterested in social media, smartphones and other trademarks of the digital age:

"Banking has crossed the tipping point and is more digital than physical. Today's personal relationship is digital and CEOs delegate all knowledge at your own risk."

Related Article: Is Your Bank CEO a Digital Alien?

Image: Fotolia

On SimpleFi, a California startup that is partnering with banks and other firms to offer employees with lower credit scores low-interest-rate loans:

"[SimpleFi] may deliver unseen dividends such as increased employee loyalty. Might an employee be less attracted to a job offer from an outside company, if their current employer provided credit at good rates? What if they carried the note for their home or auto?"

Related Article: New Challenger to Payday Loan Market Targets Employers

Image: Fotolia

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On the importance of allowing bank customers to open new accounts on mobile devices:

"Tip for bankers: If your customers can't sign up for an account in an app they download, you're already in trouble."

Related Article: Direct-Bank Pioneer Blazes Another Trail with Mobile-First Account

Image: Fotolia

On reports that some banks have been severing ties with churches and other religious organizations to avoid the risks associated with cash-based businesses:

"The constitutional right to freedom of, and freedom from, religion no more compels banks to do business with churches than does the constitutional right to free speech compel banks to do business with newspapers."

Related Article: De-Risking Threatens Religious Access to Banking Services

Image: Fotolia

On a weakness of Ally Financial's model of noncaptive auto lending:

"None of the major auto makers outsource finance. They cannot afford to give up the spread."

Related article: New Ally Chief's Job: Add Fuel to Auto Lender's Overhaul

Image: Bloomberg News