Slideshow Overdraft Fees = Speeding Tickets: Comments of the Week

Published
  • April 29 2016, 7:30am EDT
8 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 our social media platforms.

An argument opposed to more regulation of overdraft:

"Let's face it. Overdraft fees are the speeding ticket of the banking industry. People do not like speeding tickets. Overdrafts are priced for deterrence, just like speeding tickets. It is quite simple: if everyone overdrew their account there would be a safety and soundness issue for the banks."

Related Article: Pew's Call for Overdraft Reform Is Off-Base

Content Continues Below


On a new report showing where banks are most vulnerable to cyberattacks (via <a href="https://twitter.com/NHighlandFIN/status/725310238597894145" target="_blank">Twitter</a>):

"Scary and depressing. #DDoS & #phishing still hot."

Related Article: Where Banks Are Most Vulnerable to Cyberattacks Now


In response to an op-ed questioning the benefits of living wills:

"Contingency plans to cope with various future scenarios is prudent, banking on a prediction of the future is not."

Related Article: Living Wills Only Work If Regulators Are Psychic


Agreeing that reforms haven't ended the market advantage of big banks:

"Nobody cares, nobody listens. The taxpayer liability continues. Welfare capitalism for the nation's largest banks continues."

Related Article: Living Wills Only Work If Regulators Are Psychic

Content Continues Below


On FASB finalizing the Current Expected Credit Loss model:

"The ultimate fatal flaw in CECL is the belief that people can reliably predict the future, and reliably regulate and audit those predictions. Are the simultaneous buyers and sellers of stock both right about their expectations for the future? Or are half of them wrong? Will investors really benefit from financial information based on 50/50 predictions of the future?"

Related Article: FASB Delays Implementation of Contentious Loan-Loss Scheme


On a startup aiming to help institutions bank legal pot sellers and other cash-intensive businesses:

"The sale of marijuana is illegal by federal law. Banks that engage in this activity are putting themselves at risk. Period."

Related Article: A Solution for Banking Cash-Intensive Businesses: Lose the Cash


On the Consumer Financial Protection Bureau planning to propose new servicer disclosures for federal student loans:

"OK, I understand the benefit of this plan but I don't see anything about strengthening the disclosures upon the origination of federal student loans so a student can make an informed decision BEFORE they borrow."

Related Article: CFPB Seeks New Disclosures, Servicer Requirements for Student Loans