Millions of Texans have been left without power in the wake of Hurricane Beryl, baby boomers are living their best lives-and driving the economy in the process-and "the great resignation" is giving way to "the big stay." Here's what else you might want to read this week:
"US FDIC Nominee Grilled on Fixing Agency, Experience"
Despite the headline, the hearing wasn't much of a grilling. Goldsmith Romero fielded questions related to fixing the FDIC's culture, Basel III endgame, and last spring's banking turmoil, among others. Republicans went fairly easy on her with the exception of Sen. Tim Scott, R-SC, who said the Biden administration was playing politics by not calling for Gruenberg's immediate resignation and expressed concerns about Goldsmith Romero's experience. Democrats, meanwhile, touted her experience with SIGTARP, her professionalism, and her ability to work across the aisle.
Senate Banking Committee Chair Sherrod Brown, D-Ohio, said he plans to move the nomination quickly. Goldsmith Romero will need 51 votes, and if the vote goes along party lines, she'll win confirmation. But that remains uncertain.
"The Fed Is Stressed Out About the Presidential Election"
Fed Chair Jerome Powell discussed a host of banking issues during his semiannual testimony on monetary policy this week. Some highlights:
Election politics. Powell largely ducked questions related to White House politics, telling lawmakers he "wouldn't touch a sentence" with the word Bidenomics in it while emphasizing the Fed's transparency and independence.
Rate policy. Powell remained coy about the timing of cuts, emphasizing he didn't expect the central bank to start lowering rates until inflation was "moving sustainably to 2%," while stating that "elevated inflation is not the only risk we face" and highlighting the way the labor market has cooled considerably over the past two years.
Basel III. Powell told the Senate Banking Committee Tuesday that the consensus among the Fed's board is for the rule to be reproposed, though he acknowledged decision makers at other agencies may disagree. He stressed that changes to capital requirements should undergo another round of public comments and that the rule likely wouldn't be finalized before the end of the year.
Exec comp. The Fed chair had a particularly spicy exchange on the subject with Sen. Elizabeth Warren, D-MA, who accused him of allowing banks to "write their own rules."
"Banks May See Higher Office Loan Losses Than They Expect: Moody's"
The ratings agency reviewed the commercial real estate exposure of 41 banks and concluded their reserves, on average, should be double what they are. For a deep dive into the office market and the risks it poses to banks, check out the latest episode of Banking with Interest featuring Phil Mobley, the national director of office analytics for CoStar.
"How Project 2025 Would Affect Bankers"
Former economic advisers to former President Donald Trump published a document through the Heritage Foundation proposing major changes to the federal government, including its role in the banking system. It calls for merging the OCC, FDIC, and Fed; broadly curtailing the Fed's powers; and repealing much of the Dodd-Frank Act.
"What to Watch When Bank Earnings Season Kicks Off, in Charts"
Investors will be closely monitoring banks' unrealized losses, CRE exposure, lending profits, and other areas for signs of weakness.
"How to Crack the Code on Banking for Millennials"
Millennials are coming of age during a challenging economic environment. Banks that understand their preferences and financial behaviors will be well-positioned for the next decade and beyond.
"Rebranding: The Challenge of Crafting a Portrait for a Bank's Heart and Soul"
Banks can find it hard to differentiate themselves, especially given how so many have similar names. Read about the process through which American Bank Center became Bravera, and how the institution has benefitted from the rebranding.
"Traditional Banks Can Adapt to a Digital-Only Model. Here's Why They Should Consider It."
A credit union CEO (and former bank exec) explains how banks can offer better rates, charge fewer fees, and enable rapid growth by embracing a branchless model.
"How To Drive Auto Loan Opportunities"
Community banks can capture a share of the $1.2 trillion market by forging deeper relationships with dealers and embracing new technologies.
"CFPB Proposes New Mortgage Servicing Rule to Aid Struggling Borrowers"
Mortgage delinquencies and foreclosure rates are at historic lows, but they could start to increase as consumers struggle with ever-higher levels of debt. The proposal aims to keep struggling borrowers in their homes by reinstating many of the protections put in place during the pandemic.
Cyberattacks are increasing in frequency, but thanks to enhanced cybersecurity practices, fewer companies are paying the ransoms demanded by criminals.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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