Slideshow 'The Succession Plan Is a Sale of the Bank': Comments of the Week

Published
  • June 27 2014, 7:30am EDT
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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 and from our social media platforms.

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On how the fast pace of technological change poses a challenge to long-term strategy:

"It is impractical for companies to look out farther than five years when developing strategy. The iPad is … a 'banking channel' that did not exist five years ago. Today, it has to be taken into consideration on nearly every product launch."

Related Article: Is Bank Management Past Its Prime?

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On whether (and how) Fannie Mae and Freddie Mac contributed to the housing crisis:

"It wasn't so much the particular mortgages that Fannie and Freddie bought, but the fact that they bought so many of them, keeping the house price bubble inflated. That prevented the shorts from crashing the subprime market years earlier before most of the damage was done."

Related Article: Dave Brat Fudges the 'Blame Fannie and Freddie' Narrative

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On the argument that private markets, not government interventions, bear the blame for the housing crisis:

"Private markets caused the subprime mortgage boom, as the concentration of such loans was in the private label securitization market. Further, only a small share of all higher-priced originations can be attributed to the [Community Reinvestment Act] (any number of reports bear this out)."

Related Article: Dave Brat Fudges the 'Blame Fannie and Freddie' Narrative

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On banks that are using mobile banking apps to create targeted marketing campaigns:

"I think banks are just now starting to leverage account data and context (especially geo-location) to provide a truly engaging offer for traditional financial services. How it is delivered is just as critical as when … and how frictionless we can make the fulfillment is absolutely the key to driving further sales activities."

Related Article: Target Marketing: Banks Pitch Products Through Smartphones

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On the reasons why some cash-strapped people opt for payday lenders over banks:

"Consumers are 'rational.' This is why, in some instances, some consumers avoid banks for some transactions. They find the best option for their needs."

Related Article: Fresh Ideas to Help Cash-Strapped or Underbanked Consumers

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On the difficulties regulators are encountering in implementing the Dodd-Frank Act's resolution process:

"Buttressing regulatory provisions to avoid bailout[s] is not new. The concept has failed over several different crisis cycles. The idea that we can now get it right through Dodd-Frank is another self-delusion."

Related Article: Four Reasons You Should Care about Big Bank Wind-Down Plans

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On PNC regional president Eddie Meyers' push for more pop-up branches in Atlanta:

"In stark contrast to 'popular wisdom' at other mega-banks, PNC still remembers that banking is a 'people business' and requires branches and live touchpoints.

Related Article: PNC's Meyers Wants More 'Pop-Up' Branches in Atlanta

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On the reasons some community banks resist creating a succession plan:

"Given that the 'succession plan' is often a sale of the bank — not enough time and thought and effort is put into developing the next generation of leaders. Why have an heir apparent when it is apparent that you will not exist?"

Related Article: Is Bank Management Past Its Prime?

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On the government's $228.5 million settlement with GE Capital over charges that its credit card business discriminated against Hispanics and used deceptive marketing practices:

"It is perplexing that no individual officers at GE Capital Retail Bank are being targeted. This leaves these individuals free to apply their questionable skills in other nefarious activities, and misses the opportunity to send a strong message to other bankers that they cannot hide behind the deep pockets of their corporate employer."

Related Article: GE Capital to Pay $228M Over Alleged Discrimination, Card Practices

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