Google's fingerprints were all over this year's Nobel Prizes, Hurricane Milton ripped through Florida, and don't miss your chance to see this rare comet, because it won't be visible for another 800 centuries (from Earth, at least). Here's what else you might want to read this week:
"What Banks Need to Know About the CFPB's Open Banking Rule"
Not all banks are prepared for the CFPB's open banking rule, which the agency aims to finalize in a few short weeks. It's not a matter of negligence; many community banks don't know how to prepare, says IBAT President and CEO Christopher Williston. Read the ins and outs of the rule set to become CFPB Director Rohit Chopra's "major legacy," including its staggered compliance timelines, the associated fraud and liability concerns, and why every bank needs a "data-in" plan.
"Tech Costs, Regulatory Demands Among Community Bankers' Top Worries"
Cost of funds is another major concern, according to the Conference of State Bank Supervisors' annual survey of community banks. "Right now, our motto is 'Survive until 2025,'" said Lori Maley, CEO of the $1.4 billion-asset Bank of Bird-in-Hand in Pennsylvania.
"Bankers' Support for Republican President Eases vs 2020"
Forty-four percent of American Banker's audience plans to vote for former President Donald Trump in this year's presidential election, while 38% plans to vote for Vice President Kamala Harris, according to a survey of 191 of the publication's readers. However, 59% of respondents think Harris will win. (Nine percent were undecided, and 7% didn't want to say who they were voting for.)
The findings conflict with a flash poll we conducted during our Peer Intelligence webinar on how the election will impact banks, where 62% of respondents thought Trump would win and 38% thought Harris would win. The webinar, which featured Cam Fine, the former president and CEO of ICBA, and Ed Yingling, the former president and CEO of ABA, also explored the dynamics of the House and Senate races. If you missed it, you can watch the replay here (an edited version will also appear on the podcast next week).
"Digital Transformation Challenge for Smaller Banks: Getting Fintech Partnerships Right"
Despite increased regulatory scrutiny, bank-fintech partnerships aren't going away, this expert says. The simple facts are that consumers want digital banking solutions, but the costs of providing them are too high for smaller banks to bear. Read how to tackle the associated due diligence, recordkeeping, and risk management challenges of such relationships.
Additionally, be sure to check out this week's episode of Banking with Interest, featuring fintech guru Jason Mikula, on whether regulators want to kill banking-as-a-service, and review these fintech-partnership lessons from the president and CEO of a BaaS bank.
"FDIC Extends Comment Period on Brokered Deposits Proposal"
The deadline for comments on the proposal, which would force banks to recategorize many of their deposits and likely lead to higher costs, has been extended to Nov. 21. This makes it highly unlikely (though not technically impossible) that the FDIC could finalize the rule if former President Trump wins the presidential election. If Trump were inaugurated in January, the FDIC board would immediately flip to Republican control, and the proposal has been strongly opposed by the existing GOP board members.
"Credit Union Deal Record Extends"
HAPO Community Credit Union will acquire Washington-based Community First Bank, the institutions announced yesterday. It's the 18th acquisition of a bank by a credit union so far this year. The previous single-year record was 16, set in 2022. Something tells me this number will continue to go higher before this year is done.
"FDIC Proposal Sparks Overreach Debate Between Critics and Supporters"
The FDIC's governance and risk management guidelines, proposed a year ago, are unnecessary, overreaching, and potentially in conflict with state laws, industry players and state regulatory advocates claim.
"Five Things to Watch as JPMorgan Kicks Off Bank Earnings This Week"
JPMorgan and Wells report today. From unrealized losses to credit card delinquencies to the path of rate cuts, read what investors will be focusing on as earnings season gets underway.
"US Basel Impasse Casts Doubt on International Capital Accord"
Federal regulators' stalemate over Basel III endgame has European finance leaders questioning the U.S.' commitment to global capital standards, which could jeopardize international regulatory efforts more broadly. But some U.S. lawmakers would welcome a shift away from interjurisdictional coordination, and banks of course would be delighted if the proposal were scrapped.
"New Thresholds Set for TILA Protections, Appraisal Requirements"
The CFPB and Fed raised the prices at which transactions for consumer credit and leases trigger truth-in-lending requirements, from $69,500 to $71,900.
"The Harris and Trump Campaigns Are Both Taking Advice from One Wall Street Titan"
That would be JPMorgan CEO Jamie Dimon, who has expressed support for former President Trump's pro-business policies while also touting Vice President Harris' plan to provide tax credits to low-income Americans. The big question is whether he will publicly back either candidate. (Spoiler alert: he won't.)
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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