Google says its new quantum computing chip suggests parallel universes exist, a paraglider recorded a now-viral video of a dog atop an Egyptian pyramid, and wildfires are ravaging Malibu, forcing residents to evacuate. Also, Biden announced the biggest single-day act of clemency in modern history. Here's what else you might want to read this week:
"French Hill to Chair House Financial Services Committee"
Rep. French Hill, R-AK, won the Republican endorsement to become the next chair of the House Financial Services Committee. His victory likely came as a surprise to some, given that his relationship with former House Speaker Kevin McCarthy, R-CA, was considered a political hurdle and Andy Barr, R-KY, had the endorsement of House Majority Leader Steve Scalise, R-LA.
Hill joined Banking with Interest a couple weeks ago to discuss his plan to help community banks, what he thinks Congress can do for banks over the next two years, his views on Scott Bessent, President-elect Trump's nominee for Treasury secretary, and much more; listen to the episode here.
"CFPB Final Rule Would Pin Overdraft Fee at $5"
The agency finalized a rule that would give banks and credit unions three choices with respect to their overdraft policies: Cap fees at $5, charge fees equivalent to the costs of providing overdraft services, or charge higher fees while disclosing fee terms, similar to other loans.
Last week, the agency announced it was placing Google's payments arm under federal supervision. The tech giant responded by suing the bureau later that evening. The CFPB also recently added questions tied to a controversial advisory opinion on customer service to its consumer complaint form, potentially signaling a new enforcement front.
"Crypto Industry Hopes Trump Can Finally Get Them Bank Accounts"
Many banks stopped taking deposits and lending to crypto firms during the crypto downturn in 2022. Crypto VCs and founders claim banks are still closing accounts and refusing to do business with them, but they're hoping that will change under the incoming Trump administration. David Sacks, the White House's new crypto and AI czar, tweeted that the banking issue "needs to be looked at."
For more on the debate surrounding debanking and the Trump administration's crypto-friendly orientation, check out this week's episode of Banking with Interest with Fintech Takes founder Alex Johnson.
"Why the Coolest Job in Tech Might Actually Be in a Bank"
Big banks have been working overtime to attract tech talent, and their efforts are starting to pay off.
"Quarterly Banking Profile: Third Quarter 2024"
The FDIC added two institutions with approximately $3.9 billion in combined assets to its problem-bank list during the third quarter, bringing the total to 68 institutions. Industry profits fell 8.6%, driven by the absence of one-time equity gains reported the previous quarter; net interest income rose by 2.6% and total deposits increased by 1.1%.
"Strengthening Inflation Poses Challenge for Trump, Fed"
The "last mile of inflation" is proving a difficult fight to finish, with the November CPI rising to 2.7% year-over-year and core inflation stubbornly high at 3.3% year-over-year. Sticky inflation could pose a stiff challenge for President-elect Trump, who has promised to tame price increases (but also impose widespread tariffs, which many economists argue will be inflationary).
"PNC's Demchak: De-Regulation Clamor Is Overblown"
Many bankers are hopeful the incoming Trump administration will lighten supervision and regulation, but PNC CEO Bill Demchak doubts it will. "People are a little bit too excited … that they're just going to let everybody run free here," Demchak chuckled during the annual Goldman Sachs financial services conference. "I don't see that at all."
"FDIC Inspector General Finds Gaps in Resolution Readiness"
The agency isn't prepared to resolve large regional bank failures, and its deficiencies affected its ability to address last year's banking turmoil, according to a new report from the FDIC's office of inspector general. The OIG outlined a series of recommendations, including implementing training programs on resolution procedures and tracking post-crisis recommendations to ensure adequate follow-ups. The FDIC agreed with the recommendations and said it would take corrective action by June 30, 2026.
"Trump Could Bypass Democratic Picks for FDIC Board"
It's uncertain whether President-elect Trump will honor the tradition of nominating board members recommended by the top senator of the opposition party (who is Chuck Schumer, D-NY). If the president doesn't, it could lead to significant partisan turmoil, American Banker wrote.
Acting Comptroller Hsu called on regulators, banks, and trade groups to do more individually and collectively to address rising financial fraud risks during a speech at a D.C. luncheon, likening the situation to picking up litter in the streets.
"The Opportunities and Challenges of Small-Dollar SBA Lending"
To succeed in small-business lending, banks must mitigate credit risks while reducing operational costs. The key is solid credit analytics, technology platforms, and approaches to identifying markets and sourcing deals, according to this article.
"Harnessing AI in Loan Portfolio Management"
Banks that embrace artificial intelligence will be able to manage their loan portfolios more effectively, strengthen their balance sheets, and ultimately, become more competitive.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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