'Vandalism is never minor in banking': Comments of the week
July 21, 2017 8:30 AM
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Readers question acting comptroller Noreika, weigh in on SoFi’s charter application, defend Trump’s exit from the Paris Accord, and more.
David Paul Morris/Bloomberg
A retort to an essay likening newer bank regulations to the “broken windows” theory of policing that ultimately failed to discourage larger crimes:
“Broken windows and regulatory capture — strange bedfellows, to be sure. The analogy falls apart when you consider the effects ‘minor crimes and misdemeanors’ have in the financial services industry. Real people's lives, their entire lives, are shattered while the criminals serve no actual time. Perhaps a few embarrassing, but tax-deductible fines. The vandalism is never minor in the banking game, and the cops on that beat have a bad habit of switching sides — right, Mr. Holder?”
Related article:Bank regulators should avoid ‘broken windows’ approach
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On banks using a tool designed to measure inclusivity of LGBTQ staffers:
“Give me a break! Soon, the regulators will insist we hire diversity and inclusion employees.”
Related article:New metric for recruitment: How LGBT-friendly a bank is
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T.J. Kirkpatrick/Bloomberg
Responding to a post arguing that President Trump’s withdrawal from the Paris climate change agreement will create risks for banks:
“Actually, I as a banker do care about Trump's decision to withdrawal from the Paris accord. But not for the reasons outlined in the article. I believe Trump's decision was the correct one. The Paris accord placed the US at a great disadvantage due to unreasonable environmental standards that would cause harm to our economy. The result — wealth transfer from the US to other nations that truly don't care about the environment, but were happy to have the US foot the bill.”
Related article:Why banks should care about Trump's climate-change withdrawal
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On Maria Vullo, the head of the New York State Department of Financial Services, chiding startup lenders that try to skirt local interest rate caps:
“New leadership should take a fresh look at the modern financial service marketplace. The 60+ year usury cap has not kept pace with inflation and the costs to loan $500 for a short duration. Real loan sharks operate in NY per Lisa Servon 's experience at a Bronx check casher . Rate caps foster illegal lending. Touting rates at 36% APR or less only allows for 3% or less per month. That is $15 on a $500 loan. Not profitable if you have to collect and pay overhead.”
Related article:‘New York doesn’t allow that’: Maria Vullo stares down fintechs, OCC
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On a community banker breaking from the herd and supporting SoFi’s charter application (via <a href="https://twitter.com/TBakerBroadmoor/status/887690450101915650" target="_blank">Twitter</a>):
“It's good to see that there are community bankers who embrace the changing banking world.”
Related article:I’m a banker and I say let SoFi into the club
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Andrew Harrer/Bloomberg
On acting Comptroller of the Currency’s Keith Noreika requesting to study the Consumer Financial Protection Bureau’s final arbitration rule’s impact on safety and soundness:
“Noreika's claim is derisory and I bet he doesn't even believe it himself. The safety and soundness of banks (including specifically Wachovia) was profoundly endangered when they were allowed to sell ill advised, deceptive and abusive products, not the other way around. This is just political BS.”
Related article:It’s OCC vs. CFPB in tug of war over arbitration rule
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On Noreika stating his support for the proposed fintech charter:
“Mr. Noreika has apparently come to office eager to brawl with all comers. However, being in an acting capacity, one has to wonder if he isn't like those characters in old western movies who would instigate a wild barroom brawl, only to slip out of the saloon between the legs of those doing the brawling."
Related article:OCC's Noreika endorses fintech charter, slams state regulators
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