In the past year, the banking crisis has resulted in an increased call for accountability and a growing number of investigations to uncover abuses and misconduct in the financial industry. [Continue]
The Consumer Financial Protection Bureau’s recent capping of credit card late fees at $8 continues the bureau’s erroneous view of the expense as an unnecessary “junk fee.” [Continue]
Unlike other regulators who have issued guidance on this topic, the Fed has not clarified when non-sufficient fee charges could be considered fair. [Continue]
Regulatory agencies are supposed to enforce laws written by Congress. Activist regulators who want to take matters beyond the letter of the law have a right like anyone else to work the political system to change the law. [Continue]
Things change over time, and if you go back far enough, differences can be dramatic. I cite the regulatory environment for community banks as an example. [Continue]
The systemically-important or too-big-to-fail advantage increases the relative cost of funding for community banks. Government can only resolve this unlevel playing field by protecting all deposits at all banks. But that doesn’t mean it should do so. [Continue]
Charles Evans and Esther George were both born on January 15, 1958, which means they bumped up against the Federal Reserve’s mandatory retirement age for bank presidents last month. Leadership changes, therefore, are underway at the Chicago and Kansas City Federal Reserve Banks: Austan Goolsbee was named the new president and CEO of the Federal Reserve Bank of Chicago. The Federal Reserve Bank of Kansas City has yet to permanently fill the vacancy created by George’s departure; she was replaced on an interim basis by Kelly Dubbert, first vice president and chief operating officer. [Continue]
Climate risk, or the risk that climate-related changes pose to financial institutions, is demanding more and more attention from researchers, regulators and boards of directors. What are the federal regulatory agencies saying about climate risk? And what are the key areas your board and senior management should begin thinking about? [Continue]
For many banks 2020 and 2021 had surprising results. Liquidity and capital were strong, loan growth escalated from pent up demand, and income levels were favorable. These positive trends could lead many management teams to sit back and ride the wave, living in the “here and now.” However, complacency can lead to risk. In its 2022 Bank Supervision Operating Plan, the Office of the Comptroller of the Currency lists guarding against complacency as a top priority for examiners. [Continue]
Last month, the bank regulatory agencies issued a joint notice of proposed rulemaking to update the Community Reinvestment Act. Enacted in 1977, the law was last updated in 1995. Comments on the proposal, which is nearly 700 pages long, are due August 5. I encourage you to wade through the document and either comment directly or work with your trade group to make your voice heard. [Continue]