“Deposit Insurance Bill Faces Pushback Over Price Tag”
Deposit insurance reform was in the spotlight this week as the Senate Banking Committee held a hearing to consider options. This story looks at one of those options—insuring business accounts to $20 million at all but the largest banks—and concludes it is losing steam over concern it would drive up bank costs and depress lending. “Many lawmakers…are privately wondering whether the inevitably high cost of insuring a much larger pool of deposits would stymie banks' ability to offer credit in the future,” the story notes.
In an American Banker op-ed, IBAT President Chris Williston called the legislation “a threat to the entire system,” warning it did “nothing to stop speculative investors, wealthy yacht owners or whomever else from moving funds at the 11th hour from an interest-bearing account to a non-interest-bearing one the second they see a negative headline that hints at trouble at their bank.”
“OCC to Consider Debanking in CRA Ratings, Bank Licensing”
The Comptroller’s Office said it would factor “politicized” debanking into CRA reviews. “The OCC is taking steps to end the weaponization of the financial system,” Comptroller Jonathan Gould said Monday. “We are working to root out bank activities that unlawfully debank or discriminate against customers on the basis of political or religious beliefs, or lawful business activities.”
“PNC CEO: ‘We Just Effectively Bought Colorado’”
PNC’s Bill Demchak was unusually blunt in announcing a $4.1 billion deal for FirstBank: “We just effectively bought Colorado.”
“Judge Blocks Trump from Firing Fed’s Cook”
A U.S. District Court judge ruled President Trump lacked grounds to remove Fed Governor Lisa Cook, clearing her to take part in next week’s FOMC meeting. The Justice Department is appealing the decision.
In related Fed news, the Senate Banking Committee voted 13-11 to advance Stephen Miran’s nomination to the board, with a full Senate vote expected as soon as Monday.
“Training Makes or Breaks a Banking Merger. Here’s How to Get It Right”
If your bank is going through or contemplating a merger, read this story about why training and communication are critical for merging bank teams.
In Other News
The nation marked the 24th anniversary of 9/11, Turning Point USA CEO Charlie Kirk was assassinated; and video was released at a House hearing that appears to show a Hellfire missile bouncing off a UFO.