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a pie chart showing the breakdown and details for an investment portfolio
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On how banks are managing their investment portfolios, as the Federal Reserve has indicated it will halt rate hikes in the near term:

"The investment portfolio shouldn’t be managed or even discussed in isolation but rather as a component of the broader interest rate risk and liquidity position of the bank. It serves many purposes, only one of which might be to bolster earnings. Given what is likely a secular reduction in availability of deposits for traditional banks, many banks would probably be better off shrinking the bond portfolio and using it as a source of liquidity."

Related: Banks face tough decisions on investment portfolios amid Fed rate pause
BB&T bank branch
Signage stands on display outside a BB&T Corp. bank branch in Louisville, Kentucky, U.S., on Thursday, Jan. 10, 2019. Deutsche Bank analyst Matt O'Connor cut his ratings on BB&T Corp. and PNC Financial Services Group to hold from buy as he's become "more selective" on large regional banks. Photographer: Luke Sharrett/Bloomberg
Luke Sharrett/Bloomberg
On an argument that a merged BB&T-SunTrust should be more focused on community development:

"Pure extortion of commerce to define what the consolidated institution should do."

Related: Will BB&T-SunTrust serve the community or Wall Street?
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Another reader weighs in on calls for BB&T-SunTrust to meet with community groups as part of their merger:

"Deposits do not belong to unqualified and unable borrowers."

Related: Will BB&T-SunTrust serve the community or Wall Street?
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4 billboards with photographs exhibited at city street
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On a look at how banks are increasingly approaching new branches as a marketing opportunity:

"You could buy every billboard within 100 miles for the cost of opening and operating a branch."

Related: Why keep branches around? They make great billboards
Fannie Mae building
The sign outside Fannie Mae headquarters stands in Washington, D.C., U.S., on Monday, March 14, 2011. Fannie Mae and McLean, Virginia-based Freddie Mac were seized and placed under U.S. control in 2008 as losses on soured loans pushed them to the brink of insolvency. The two government-sponsored enterprises have been sustained by more than $150 billion in U.S. aid. Photographer: Andrew Harrer/Bloomberg
Andrew Harrer/Bloomberg
On an argument that government-sponsored enterprises Fannie Mae and Freddie Mac should be required to maintain 4% capital:

"All this 'GSE' recap/release is pure fiction to keep the $5 trillion off the federal debt limit. A simpler and more economic solution would be to make the GSEs government entiites, make the guarantee explicit, add the $5 trillion to the national debt, and let the Treasury keep the entire 55 bp G-Fee. (conservatorship does all this and keeps the $5 trillion off the federal balance sheet). However, no President (dating back to LBJ) has been willing to do this."

Related: Give Fannie, Freddie the same capital standards as everybody else
CFPB Director Richard Cordray
Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), speaks during a Senate Banking Committee hearing in Washington, D.C., U.S., on Thursday, April 7, 2016. Testimony from Cordray today may shed light on the status of several regulations that could curtail revenue from payday loans, prepaid cards and other financial products. At a March 16 hearing, Cordray hinted that a rule to limit prepaid cards won't be finished until June. Photographer: Andrew Harrer/Bloomberg *** Local Caption *** Richard Cordray
Andrew Harrer/Bloomberg
On the House passing legislation to reverse the Trump administration's impact on the Consumer Financial Protection Bureau:

"'...rather than the strict enforcement regime that the agency maintained under the Obama administration’s former director, Richard Cordray.' When you say strict, are you saying making educated guesses to identify minority automobile loan borrowers by using their last names and addresses is a strict interpretation of ECOA/Regulation B?"

Related: House passes bill to reverse CFPB policies under Trump administration
Victoria Finkle
BankThink Editor , American Banker
Consumer banking Deposits Investment strategies GSEs GSEs GSE reform BB&T SunTrust CFPB News & Analysis
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