Parents are at their wits' end, a Major League Baseball player made history by playing for both teams in the same game, and why is it so hard to forecast a recession? Here's what else you might want to read this week:
"For Community Banks, Rate Cuts Present Positives and Perils"
Lower interest rates could spur loan demand, improve credit quality, and bolster securities portfolios. However, in the near term, lower rates could also curb lending profitability as adjustable-rate loans reset before funding costs come down, this article says.
"Small Players Dominate the Best Banks List"
Nineteen of the top-25 highest performing banks in the country last year had fewer than $10 billion in assets, according to Bank Director's annual RankingBanking analysis. The findings, which assess institutions based on return on assets, return on equity, and other metrics, are validation of the community bank model, says Emily McCormick, Bank Director's VP of editorial and research.
"Judge Rejects Challenge to CFPB Small-Biz Data Collection Rule"
A federal judge sided with the CFPB after trade groups and a private bank challenged the bureau's rule requiring banks to collect data on small business loans. "Plaintiffs' argument is convoluted and relies on a series of inferences which clash with the substance of the statutory text," the judge wrote.
Some fair lending violations are obvious. Others are more nuanced. Regardless of what triggers a probe, the consequences can be severe. Employee training, periodic auditing, and other measures can help banks identify risky practices and address any fair-lending weaknesses, this article says.
"What Hsu's 'Unprecedented' Tenure at OCC Says About Banking Policy"
Nobody has ever served longer as acting Comptroller of the Currency than Michael Hsu without being nominated for the permanent role. The arrangement reflects not only heightened partisanship between Democrats and Republicans, but also a division within the Democratic party.
"Fed's Waller Pumps the Brakes on Faster Cross-Border Payments"
Interlinking networks to enable faster cross-border payments would increase fraud and security risks and raise costs for banks, Fed Governor Christopher Waller said Wednesday. "There is no silver bullet that increases speed and efficiency without tradeoffs," he said.
"FDIC Fights Latest Challenge to the Use of In-House Judges"
The FDIC is trying to blunt the impact of SCOTUS' recent SEC v. Jarkesy decision, which curbed regulators' use of administrative law judges, in a case involving violations of SBA loan rules. In a complaint (and a likely preview of arguments to come), the defendant's attorneys called the enforcement proceeding unlawful, claiming the defendant was denied the right to a jury trial.
"Big-Bank CEOs Like to Wield Influence-Except in Presidential Politics"
This WSJ story was played big so it's worth a look. Big-bank chiefs often weigh in on political issues and contribute to their institutions' political action committees, but since the 2008 financial crisis, they've almost always shied away from endorsing specific candidates for president.
"Fed Sets Final Capital Requirements for Large Banks"
The Fed announced individual capital requirements for big banks based on the results of its annual stress tests. Notably, it lowered Goldman Sachs' requirements after determining that nonrecurring expenses related to divestitures shouldn't have any bearing on the bank's capital buffers.
"US Dollar Sinks to New Low as Job Market May Set Fed's Next Move"
In anticipation of a new rate cutting cycle-and with the Fed eying the labor market more closely-the U.S. dollar has dropped to its lowest level in over a year, and analysts say it has further to fall.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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