It seems with the recertification process that the intent of the updates will reduce the service to rural and underserved markets. We need more rural serving banks in the CDFI program rather than what is likely to happen if the process remains as has been suggested. I don't feel it will impact the urban areas, but that is an area I am not as familiar with to be fair.
-------------------------------------------Original Message:
Sent: 06-22-2023 15:35
From: Rob Blackwell
Subject: DOJ's M&A Scrutiny, 'Reverse' Stress Testing, Powell Testimony: This Week's Top Stories
The world was captivated this week by the story of a submersible that disappeared Sunday en route to the wreck of the Titanic.
In other news, more than 100 people attending a concert in Denver were injured in a vicious hail storm, the co-founders of one of the world's biggest hedge funds can't seem to agree on anything, and … are your employees getting high at work?
Here's what else you might want to read this week.
"DOJ to Expand Scrutiny of Bank Mergers"
While recent evidence suggests regulators may be softening their stance on bank M&A, Jonathan Kanter, the Justice Department's assistant attorney general for antitrust, announced Tuesday that the agency plans to amp up its scrutiny of industry mergers and consider a broader range of criteria when reviewing deals, such as customer service, fees, and interest rates. The "narrow focus on local market deposit concentration" is not sufficient, he remarked.
"Federal Reserve Exploring 'Reverse Stress Testing' After SVB Collapse, Fed's Barr Says"
Barr believes the practice could help supervisors by breaking their reliance on the patterns characteristic of regular stress testing. The main difference between the two approaches, in his words: "Instead of thinking of a stressful scenario and then see how it would play through on, say, the balance sheet of a firm, you look at a bank and you say: 'Well, what would it take to break this institution?'" The potential change is part of a broader supervisory reform effort at the Fed.
"Powell: Community Banks May be Spared from Tougher Capital Rules"
The Fed chair discussed the balance between the need for banks to hold more capital and their ability to lend before the House Financial Services Committee Wednesday, stating it would be unwise to regulate smaller banks to the point where their business models are stressed. Powell also emphasized that the Fed still has work to do to tame inflation.
"Failed-Bank CEO Pay Has Scrambled the Senate's Partisanship"
In today's partisan political landscape, senators like Elizabeth Warren, D-MA, and J.D. Vance, R-OH, would appear to make strange bedfellows. But nothing unites the left and right quite like bank execs who rake in millions just before their institutions collapse into dust.
Case in point: On Wednesday, a clawback bill for executive pay cleared the Senate Banking Committee in a 21-2 vote and will now head to the full Senate, where it's expected to pass. It will still need to make it through the GOP-controlled House, however.
"2023 Compensation Survey Results: Measuring Up"
Banks are still raising employee pay, struggling to find qualified applicants, and offering remote work arrangements, according to Bank Director's 2023 compensation report. Review the high-level findings here.
"CFPB Says Consumers in the South Face Banking Deserts, Higher Rates"
There are fewer branches in the South than the rest of the country, with Mississippi and Louisiana laying claim to the highest unbanked rates in the nation.
"Bank Economists Expect Credit Conditions to Weaken Through 2023"
Loans may be harder to come by if borrowing costs increase and credit losses and defaults rise over the second half of the year, says the American Bankers Association's Economic Advisory Committee.
"Fed Publishes Master Account List"
The move follows calls from Republicans to make the central bank's process for granting accounts more transparent as a growing number of uninsured firms seek access to its payment systems. Read on to see why Caitlin Long, CEO of crypto-focused Custodia Bank, said the list raises "a lot of questions" and why she believes the Fed "fought so hard to keep this list secret."
"Top Banks $2B to $10B: Profitability Rests on Strong Asset Quality"
Seventeen of the 20 top-performing large community banks according to American Banker's most recent annual rankings share one metric in common: nonperforming loans are less than 1% of total assets.
"On Wall Street, Lawyers Make More Than Bankers Now"
Stagnant compensation among investment bankers and increasing responsibilities for lawyers have tipped the (pay) scales in favor of the latter group of professionals.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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