Thanks Rob,
When you combine the growth of annuities and the growth of money market mutual funds, it seems that bankers should be considering the inadequacies of limiting our offerings to only the classic checking, savings, and term deposits. It is time to offer a combination of yield and liquidity to compete and win properly priced deposits. Redeemable CDs are designed for this specific purpose. If you don't know about it yet, now is the time to discover it. At TS Bank it is called CDtwo.
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Neil Stanley
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Original Message:
Sent: 12-19-2024 19:04
From: Rob Blackwell
Subject: DOGE, Overdraft Suit, Little Banks' Big Problems: This Week's Top Stories
The House Ethics Committee voted to release its report on former congressman Matt Gaetz, R-FL, "Bidenomics" had a better year than the president himself, and ever wonder about the origins of the ugly Christmas sweater? Here's what else you might want to read this week:
"Politics, History, Hubris: Why Agency Consolidation Isn't Easy"
The Trump administration's DOGE is thinking about abolishing the FDIC and moving deposit insurance under the Treasury Department amid a broader push to consolidate and streamline federal agencies. If history is any guide, such an effort will encounter stiff political and industry resistance. Earlier this week, Bloomberg Law reporter Evan Weinberger joined Banking with Interest to discuss the potential fallout of eliminating the FDIC; listen to the episode here.
"Musk Draws First Blood With Spending Bill Bombshell"
Speaking of DOGE, lawmakers who may harbor skepticism about its ability to overhaul the government were forced to take notice after its co-leader, Elon Musk, pushed his 200-million-plus X followers to call their representatives and urge them to vote against a bipartisan funding bill. They listened and GOP support for the bill evaporated. "Our constituents, the people who elected us, are listening to Elon Musk," said Rep. Andy Barr, R-KY. "My phone was ringing off the hook today." The government is set to close down on Friday if Congress can't agree on a new plan.
"Trade Groups Sue CFPB Over Overdraft Rule"
The American Bankers Association sued the CFPB yet again, this time over its overdraft rule. The rule "ignores thoughtful industry and stakeholder feedback, and will harm the very consumers the CFPB claims to protect," ABA President and CEO Rob Nicols wrote in a press release Friday.
"Community Banks Face Perfect Storm of Cybersecurity, Regulatory, and Funding Pressures"
Cyber risks, funding costs, regulatory burdens, and technological pressures are creating an intricate web of challenges for community banks, according to the results of the Conference of State Bank Supervisors' annual survey.
"CFPB Swats at Retail Credit Cards"
The CFPB published a notice on what it considers abusive credit card practices, warning card issuers that devalue rewards, or don't redeem them, that they may be breaking federal law. The agency also published a report on the "high costs" of retail credit cards and launched a tool to help consumers compare rates.
"House Republicans Warn Banking Agencies to Pause Rulemakings"
GOP lawmakers led by current HFSC Chair Patrick McHenry, R-NC, and incoming HFSC Chair French Hill, R-AR, told banking agencies to refrain from moving ahead with new rules during the lame duck Biden administration and hinted at more oversight in the new Congress.
"Short-Term Loans Get Just What They Need: A Long-Term Commitment"
Deep-pocketed private creditors are increasingly interested in funding buy now, pay later providers. Read why both parties stand to benefit.
"Banks Eye More Lending Opportunities in 2025"
Over the next year or so, analysts anticipate median loan growth of 5.8% at small banks and median loan growth of 5.4% at large and midsize banks. However, liquidity could continue to pose challenges for many institutions.
"They Look Like CDs, but They're Annuities-and Sales Are Booming"
Fixed rate annuities are selling like hotcakes, but investors need to be mindful of the associated risks, chief of which is a lack of FDIC protection.
"The AI Tipping Point: How Banks Will Drive Real Results in 2025"
Banks that were early adopters of generative AI are starting to generate returns on their investments. Read why trends in customer service, security, and other areas will drive further AI adoption in 2025.
"Fed Cuts Interest Rates Again, but Officials Expect Fewer Reductions in 2025"
The Fed cut interest rates 25 bps this week, but the bigger news is that with inflation sticky, officials now expect just two cuts next year.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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