Exploding devices used by Hezbollah members are stoking fears of an Israeli ground attack in Lebanon, read four ways the Fed's big rate cut could affect the housing market, and what would happen if employees could elect their CEOs? Here's what else you might want to read this week:
"How Technology and Regulation Are Shaping the Future for Regional and Community Banks"
Heightened regulatory standards and the evolution of technology are separate, yet linked, forces shaping community and regional banking matters, from cybersecurity to financial crime to CRA compliance. While navigating their effects will be challenging (especially as regulators increase scrutiny of bank-fintech partnerships), smaller banks can start by benchmarking their technology spend compared to peers and the overall industry, one expert says.
"Big Rate Cut Forces Fed to Contend with New Obstacles"
The Fed cut interest rates by 50 bps this week in what has been widely perceived as an aggressive move to prevent the economy from tipping into recession. Bank stocks rose on the news. Lower rates could help lenders avoid credit losses if the economy does in fact continue growing; on the other hand, steep cuts could also curb lending profits. The big questions now are what the ideal rate is and how quickly the Fed will move to get there. The central bank may not have these answers yet, though Chair Jerome Powell did say the neutral rate would likely be "significantly higher than it was" before the pandemic.
Nearly lost amid news of the big rate cut was Powell's expression of support for the revised Basel endgame proposal, which he said during his post-FOMC press conference the central bank would aim to finalize in the first half of 2025.
"FDIC Seeks Tougher Recordkeeping on Fintech Partners"
The agency proposed a new rule to improve record-keeping for custodial accounts following the collapse of Synapse, which has resulted in millions of dollars' worth of frozen customer funds. The FDIC also approved a new policy that will increase regulatory scrutiny of mergers by considering concentrations not only of deposits, but also small business and residential loan originations. The DOJ and OCC also updated their own bank-merger guidelines.
"CFPB Wants Banks to Prove Overdraft Opt-Ins"
Banks must be able to prove that consumers opted in to receive overdraft services before they can charge overdraft fees, the bureau reminded in a circular Tuesday. "No Americans should be hit with bank account fees that they never agreed to," CFPB Chief Rohit Chopra said in a statement.
"How Community Banks Can Nurture Relationships With Next-Gen Customers"
Read how community banks can bolster their customer bases ahead of a shift in trillions of dollars of wealth to younger Americans.
"Flying Blind: Bankers Lean on Policy Glimpses to Evaluate Harris, Trump"
Deciphering where Vice President Kamala Harris and former President Donald Trump stand on bank policy issues hasn't been easy this election cycle. However, voters can get hints based on who the candidates have appointed to advisory and campaign roles, insiders claim.
"Where Have All the New Banks Gone?"
Just two de novo banks have opened this year, compared to an average of 100 openings per year leading up to the 2008 financial crisis. While industry experts agree the lack of new banks is a problem, they can't seem to agree on the reasons behind it or how to solve it.
"How Western Alliance and Its Board Navigated a Crisis"
During a recent conference, Western Alliance's CEO and chairman discussed the lessons he learned from navigating last year's banking crisis, when many investors and depositors thought his institution would be the next to fall after SVB and Signature.
"Warren, Waters Blast 'Meritless' Industry Lawsuit Against CRA Reform"
The progressive lawmakers ripped the American Bankers Association, Independent Community Bankers of America, and other industry groups for filing a lawsuit against CRA reform, claiming under the "current, outdated rules" banks get a "free pass" to engage in discrimination.
"'Pig-Butchering' Scams Cost Americans Billions. This Lawyer Is Taking Them On."
Millions of people around the world have fallen victim to pig-butchering scams run by international gangs (including the former CEO of Heartland Tri-State Bank in Kansas, which failed last year). Read how these scams work and what one lawyer is doing to address them.
"Republican Lawmakers Still Hope for Crypto Legislation This Year"
HFSC Chair Patrick McHenry, R-NC, and Sen. Cynthia Lummis, R-WY, haven't given up on passing comprehensive crypto legislation this Congress. A bill could still get attached to the National Defense Authorization Act or a year-end spending package, McHenry claims.
"Why a Key Metric for CRE Has Gone Out of Vogue"
Lenders, analysts, and investors are focusing less on loan-to-value ratios as a way to measure risk and evaluate CRE portfolios as the industry continues to struggle, this article says.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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