'Jump right in, the shark infested water is just fine': Comments of the week

December 13, 2018 9:30 PM

Readers sound off on fintechs entering the student loan market, the FDIC’s brokered deposit rules and a heated debate over the new CFPB leader.

Number of international students in U.S. as of 2017

On fintechs jumping into private student lending:

"Jump right in, the shark infested water is just fine. After all, the government has such done an excellent job of turning students into indentured servants for decades to come."

Related: Fintechs look to fill void in private student lending left by banks

Representative Maxine Waters, a Democrat from California and ranking member of the House Financial Services Committee, questions witnesses during a hearing in Washington, D.C., U.S., on Wednesday, Oct. 25, 2017. The hearing was titled Examining the Equifax Data Breach. Equifax Inc., already reeling from American probes into the loss of data on 145.5 million customers in a computer hack, will face an investigation in the U.K., where 694,000 consumers had information stolen. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

On Rep. Maxine Waters, D-Calif., being nominated to chair the House banking panel:

"Interesting times for sure. I look forward to more civility and less rhetoric from Ms. Waters in the coming year (sorry, I was typing this with my wishful thinking cap on....now back to reality)."

Related: Waters nominated to chair House banking panel

Cost control speedometer. Cost management

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Casting doubt on the investment reward of forming a de novo bank:

“As a former de novo organizer, I wonder if the technology requirements, capital needed, and competitive landscape make it difficult to convince investors that the risk/reward of economic return makes sense. If I had $35 to $40 million, I think I would be better off trying to find an existing bank charter to buy.”

Related: We can do better on de novos

Representative Brad Sherman, a Democrat from California, speaks during the Politicon convention inside the Pasadena Convention Center in Pasadena, California, U.S., on Saturday, July 29, 2017. During the third annual Politicon pundits, politicians, comedians and entertainers gather to discuss issues that touch all sides of the political spectrum.Photographer: Patrick T. Fallon/Bloomberg

Patrick T. Fallon/Bloomberg

On Democrats criticizing the new CECL accounting standard:

"Congress' hands are not exactly tied. It was they that mandated banks follow GAAP (remember Regulatory Accepted Accounting Principles?) and what they did, they can also "undo" selectively if they wish. That would undermine FASB (not a good thing) but a good dose of reality might encourage FASB to take a more pragmatic approach. RAAP anyone?"

Related: Piling on: Democratic lawmakers join chorus of CECL critics

The word 2019 written in vintage metal letterpress type on a bokeh light and wooden background.

enterlinedesign - stock.adobe.com

On what fintech innovations to expect in 2019 and beyond:

“I find myself agreeing with the predictions, and even would suggest that some of the areas are many years away (vs. a few). When some of the innovations begin to get prime-time play in middle America, I'll be more convinced that adoption of some of these innovations is real.”

Related: 7 (realistic) predictions about fintech in 2019

Senate Majority Leader Mitch McConnell, a Republican from Kentucky, walks to a meeting at the U.S. Capitol in Washington, D.C., U.S., on Thursday, July 19, 2018. President Donald Trump disagrees with a Russian request to question U.S. officials including former Ambassador to Russia Michael McFaul, the White House said in a statement minutes before the Senate was expected to rebuke the president for considering the proposal. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

On Senate Majority Leader Mitch McConnell, R-Ky. praising Kathy Kraninger as the new director of the Consumer Financial Protection Bureau:

"One huge missing word from McConnell's statement: 'relevant'... I have decades of experience but you sure as hell don't want me performing open heart surgery on you."

Related: Senate barely confirms Kathy Kraninger as new CFPB director

A woman vacuums the rug outside the Federal Deposit Insurance Corp. (FDIC) headquarters in Washington, D.C., U.S., on Tuesday, Oct. 9, 2012. U.S. banks with assets from $10 billion to $50 billion will get until next year to begin self-administered stress tests under Federal Deposit Insurance Corp. rules approved today. Photo: Rich Clement/Bloomberg

Rich Clement/Bloomberg

On an op-ed defending brokered deposits as the Federal Deposit Insurance Corp. is weighing a policy change:

"The chances of FDIC recognizing this BD reality are nil. There is an irrational fear of BD's at FDIC, to the extent that they would rather see an otherwise solvent bank fail for liquidity reasons than to grant a small brokered deposit waiver. The only chance of changing those views is a wholesale replacement of the Jurassic personnel (the same ones who orchestrated Choke Point). Good luck to Chairman McWilliams on that."

Related: Brokered deposits' bad rap is undeserved

A Wells Fargo bank branch stands at night in New York.

On how the Office of the Comptroller of the Currency has not let up in its approach to Wells Fargo’s regulatory troubles:

“The OCC was embarrassed and they are demonstrating that they have a long memory. They will insist on taking their pound of flesh (and probably some more) before they ease up the pressure.”

Related: Wells Fargo's latest troubles suggest tougher stance by OCC

A logo is displayed on a rug outside a Marriott International Inc. hotel in Chicago, Illinois, U.S., on Friday, Nov. 30, 2018. A cyber breach in Starwood's reservation system had allowed unauthorized access to information about as many as 500 million guests since 2014. Photographer: Daniel Acker/Bloomberg

Daniel Acker/Bloomberg

On Congress’ apparent inability to respond to a massive data hack with legislative reforms:

“What will it take? It will take the public elevating this to a campaign issue. Congress does what is in the best interests of its individual members. If they are not at risk for re-election, don't count on anything.”

Related: What will it take for Congress to act on a data breach?