Economy

Readers sound off on the use of AI in underwriting, the reasons for the failure of a Milwaukee bank, U.S. banks’ progress in adopting APIs, and more.

FHFA Director Mel Watt warned Thursday that to prevent a potential draw on the Treasury Department by the government-sponsored enterprises, he is willing to act unilaterally to rebuild capital at Fannie and Freddie.

Without powers granted by the Dodd-Frank Act to unwind failing financial firms, a central and known problem that contributed to our last financial crisis would become a core problem of our next one.

The good news: SBA lending is going gangbusters and business owners are optimistic about growth prospects and their ability to access credit. The not-so-good news: Many firms are still not particularly interested in borrowing and startups are not the engines of job creation they once were.

Belpre Savings Bank and Doolin Security Savings Bank are planning to create a mutual with nearly $100 million in assets.

James Herbert, 72, has once again postponed retirement. The longtime CEO was scheduled to step down at yearend, but the company says he will remain at the helm through 2020.

Stonegate Bank in Florida figured its balance sheet was too small and undiversified to stay independent. But it was choosy in approaching potential buyers and aggressively scrutinized the lead bidder’s loan book.

Allan Meltzer was an economist and Federal Reserve historian who was critical of the central bank’s recent policies.

Fifth Third, Huntington Bancshares and KeyCorp are among the companies backing an effort to bring startups to the Buckeye State.

Bank of Austin still needs approval from the Federal Deposit Insurance Corp., though organizers remain hopeful it can open this summer.

Despite major fanfare about new challenger institutions or digital-only bank brands, technology and revenue difficulties are among the factors threatening their ability to adapt and grow.

The Financial Stability Oversight Council discussed its designation of certain nonbanks as systemically important and the "efficacy" of the Volcker Rule at a closed-door meeting on Monday.

Banks are increasingly tightening lending standards for commercial real estate loans and are likewise seeing a drop-off in demand, according to a report released Monday by the Federal Reserve Board.

On Dec. 31, 2016. Dollars in thousands.

On Dec. 31, 2016. Dollars in thousands.

On Dec. 31, 2016. Dollars in thousands.

BluCurrent CU began exploring video banking four years ago, but after a rocky start and reworking the platform, the credit union has seen strong results across demographic lines.

Andreas Dombret, the top banking regulator in Germany, said international standards need to be vigorously enforced and implemented.

By banding together, banks can negotiate better terms with startups and other tech companies, FIS' chief operating officer says.

As Treasury Department officials review the Financial Stability Oversight Council’s designation process, they should also re-examine how the Dodd-Frank Act defines systemic risk.