Slideshow

'You had a great brand. Egos killed it': Comments of the week

June 13, 2019 10:00 PM

Readers respond to BB&T-SunTrust's rebranding, consider the future of home equity loans, debate the trend of credit unions buying up community banks and more.

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 BB&T-SunTrust announcing the name for the banks' new combined entity, Truist:

"What percentage of people made the "They paid someone to come up with that?" or "Is that an actual word?" comments within seconds of reading it? 80%?"

Related: BB&T-SunTrust unveil postmerger name that nods to legacies

Graphic designer development process drawing sketch design creative Ideas draft Logo product trademark label brand artwork. Graphic designer studio Concept.

Chaosamran_Studio - stock.adobe.com

Another reader responds to the introduction of Truist, which received mixed reactions across the industry:

"I like that it's unique" via Twitter

Related: Hard sell ahead for BB&T-SunTrust as ‘Truist’ lands with a thud

SunTrust Banks Inc. signage hangs above an automated teller machine (ATM) at a branch in Washington, D.C., U.S., on Tuesday, Nov. 11, 2014. SunTrust Banks Inc. announced plans in Aug. to hire as many as 200 people for its investment bank to expand businesses including capital markets and stock research and add expertise targeting the energy and health-care industries. Photographer: Andrew Harrer/Bloomberg

Andrew Harrer/Bloomberg

A third reader reacts to the name for BB&T-SunTrust:

"They should have put egos aside and simply remained/become SunTrust. SunTrust is already well known. The brand is not tied to any particular region. You can produce infinite amounts of marketing pieces around the sun and an image of the sun. And "trust" is literally already in the name. You had a great brand. Egos killed it. Good luck."

Related: Hard sell ahead for BB&T-SunTrust as ‘Truist’ lands with a thud

Michelle Bowman, right, and Richard Clarita.

On comments by Federal Reserve Gov. Michelle Bowman signaling a willingness to clarify the ability of banks to provide services to industrial hemp businesses:

"I don't want to look a gift horse in the mouth, but while we're talking hemp, let's tackle marijuana and banking once and for all!"

Related: Regulators are open to banks serving hemp businesses: Fed's Bowman

On a look at whether the market for home equity loans has the opportunity to bounce back:

"Nope. In a falling rate environment, REFIs trump HELOCs. Thus they continue to shrink as asset class on bank balance sheets. In fact, RESI lending, servicing and asset sales are all continuing to fall every single quarter. Non-banks can't really compete for HELOCs. #funding. Thus the product is DOA...."

Related: Will home equity lending ever recover?

Kathy Kraninger, director of the Consumer Financial Protection Bureau (CFPB), speaks during the Milken Institute Global Conference in Beverly Hills, California, U.S., on Monday, April 29, 2019. The conference brings together leaders in business, government, technology, philanthropy, academia, and the media to discuss actionable and collaborative solutions to some of the most important questions of our time. Photographer: Patrick T. Fallon/Bloomberg

Patrick T. Fallon/Bloomberg

On the Consumer Financial Protection Bureau announcing the delay of a compliance date for the underwriting provisions of its payday rule:

"Ability to repay is fundamental to lending. Kraninger should not be complicit with payday lending rapists. She can stop this travesty. There are sensible alternatives for consumers that are not predatory. Currently more than 500 federally insured credit unions offer payday loan alternatives with interest rates hovering under 20%. Just because a bank can charge more doesn't mean it should. Set prudent guidelines and limits!"

Related: CFPB delays compliance date for key part of payday lending rule

rubber stamp marked with regulation

Wolfgang Filser/Wolfilser - stock.adobe.com

On an argument that lawmakers should revisit credit unions' tax-exempt status in light of the industry's increasing acquisitions of small community banks:

"The reason that credit union acquirers are larger than the acquired banks is that a credit union does not issue stock and therefor must pay cash for acquisitions. That directly reduces capital and net worth, which limits the size of institution that can be acquired. It's not as sinister as the author suggests."

Related: Credit union shopping spree funded by taxpayers

American Capital Building in Washington DC at Dusk.

W.Scott McGill - stock.adobe.com

Another reader weighs in on an argument that credit unions are purchasing an increasing number of community banks due to unfair policy advantages:

"It still negatively affects the communities tax base and reduces competition. Sure wish people would complain to their Senators and Congress representatives. Credit Unions have outlived their usefulness in their current taxpayer subsidized form."

Related: Credit union shopping spree funded by taxpayers

Two dollar bill fixed on clothes peg with green blur backgroung

nanantachoke - Fotolia

On a look at a new anti-money-laundering bill unveiled by a bipartisan group of senators:

"Disappointing to see no change in CTR and SAR thresholds, but not surprising in the least. FINCEN and law enforcement are continually demanding new information with no requirement to show results remotely commensurate with the cost. And of course, it is banks who have to bear that cost, so there is no incentive for law enforcement to give a rip."

Related: Cheat sheet: What Senate AML bill means for financial industry