'Fly with Crows, Get Shot with Crows': Comments of the Week
July 5, 2013 8:27 AM
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.
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On the dictatorial management style of some bank executives:
"Directive and coercive tactics may be good in a fire, but on the general organizational playground, they are still referred to as bullying."Related Article: Heavy-Handed Leadership Style Stifles Big Banks
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On banks monitoring their reputations:
"At this stage of the game, 'reputational risk'
is akin to the concern for fire safety in Chicago circa late 1871. In some alternate universe, the 'great fire' of 2008 may lead to the kind of rebuilding that led Chicago to become a great American city. In ours, however, it will likely lead to another pointless conflagration."Related Article: American Banker's 2013 Survey of Bank Reputations
On regulators using 'reputation risk' as a catch-all to challenge disfavored banking businesses:
"I wonder if examiners provided informal 'guidance' to Bank of America about doing business with law-abiding firearm manufacturers and retailers."Related Article: Examiners' Growing Misuse of 'Reputation Risk'
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On regulators potentially using 'reputation risk' as a catch-all to challenge disfavored banking businesses:
"If you want to take it a step further, what about lending to groups that espouse or are associated with politically disfavored views?"Related Article: Examiners' Growing Misuse of 'Reputation Risk'
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On regulators potentially using 'reputation risk' as a catch-all to challenge disfavored banking businesses:
"'When you fly with the crows, you get shot with the crows' may be what the regulators are saying."Related Article: Examiners' Growing Misuse of 'Reputation Risk'
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On asking the private market to take more risk as part of GSE reform:
"Unfortunately the idea of the private market is so foreign to current thought that one can hardly expect that politicians
will grasp the concept."Related Article: Corker-Warner Improves on GSE Model
Barely
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On regulators cracking down on bank deposit advances:
"The best way to reduce the cost of short-term credit to consumers is to encourage competition among the banks, yet the regulators appear to be trying to push banks out of it."Related Article: Regulators Double Down on Deposit Advances; Consumers Pay
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On the case for a strong leverage ratio:
"Regulators have no concern whatsoever when the risk models used by bankers work. Their concern is when they don't."Related Article: Raising Leverage Ratio Weakens Bank Liquidity
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On the assertion that 'banking is no longer fun':
"Is banking only fun when bankers can manipulate the economic system to their personal advantage? Is it fun to cease making loans for any reason in order to stifle the system?
Do any of you care?"Related Article: 'Banking Is No Longer Fun': Comments of the Week
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On the assertion that 'banking is no longer fun':
"There are bankers out there who are 'tired' and find it increasingly more difficult to navigate the regulatory and compliance issues they face as well as general economic conditions."Related Article: 'Banking Is No Longer Fun': Comments of the Week
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On whether bankers care about their fellow citizens:
"All of my colleagues are honest/ethical people
not the Wall St.-type that so many loathe. They face the same issues as everyone else and are feeling the same hardships around credit. So yeah, we do care, but facing the headwinds of a weak economy and burdensome regulations
it is hard to really provide all the loans we would like."Related Article: 'Banking Is No Longer Fun': Comments of the Week
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On blocking entrants to banking:
"Washington ignores the simple fact that the economy is largely driven by credit and more well-regulated credit providers are needed to get back to normal."Related Article: Blocking Newcomers Is Bad for Banking
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On California accusing the Bitcoin Foundation of operating as an unlicensed money transmitter:
"Don't bite it. Don't try to explain you're not a money transmitter. Instead, have them explain how you're an MSB [money services business]." (Via Reddit )Related Article: California vs. Digital Currencies [video]
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