Regarding the Topic of Managing Excess Liquidity - I suggest you add to the list - Inviting depositors with high-rate term deposits to redeem early. Sounds so simple, could it possibly work? The answer from bankers who have tried it is YES, it creates many positive results and takes so little effort to send a thank you and an invitation to their depositors! Only a minority of the accounts redeem early. But, it creates significant profit for every account that does redeem and creates a positive impression with everyone who receives a thank you / invitation.
------------------------------
Neil Stanley
------------------------------
-------------------------------------------
Original Message:
Sent: 02-04-2021 17:08
From: Barb Rehm
Subject: Weekly News Roundup
Groundhog Day felt like a cruel joke this year, and the critter saw his shadow so six more weeks of winter! Boo. More snowstorms are forecast for the Midwest and Northeast this weekend, and thunderstorms are expected in Tampa for Super Bowl LV. Are you rooting for Brady or Mahomes? My household is divided, but it's supposed to be a close game so should be fun. Here's what else might interest you this week.
"Managing Excess Liquidity Getting Tougher for Banks"
This is a "dog bites man" headline for all of you swimming in deposits. How are banks dealing with it? Buying securities, paying down FHLB advances and hunting for borrowers – probably what you're doing, too. Liquidity increased in the fourth quarter and the trend is expected to continue, American Banker reports.
"How Democrats Could Gain Control of FDIC's Agenda"
I've been paying close attention to the FDIC since 1987 and I learned something from this American Banker story – the CFPB director and the Comptroller both have the power to bring issues before the FDIC board. While Republican FDIC Chair Jelena McWilliams plans to serve out her term, which runs through mid-2023, she is now outnumbered by the board's three Democrats. Biden-administration officials have already forced policy shifts at the CFPB and the OCC, and the FDIC is expected to see similar changes.
"Fast-Tracked PPP Forgiveness Provided Unexpected Earnings Lift"
Fee income from forgiven PPP loans is boosting bank bottom lines.
"$500 Billion in Aid to Small Businesses: How Much Did It Help?"
Politicians of all stripes support the Paycheck Protection Program, but academic economists say their research shows "it has saved relatively few jobs and that, at a cost of more than half a trillion dollars, it has been far less efficient than other government efforts to help the economy," The New York Times reports. But PPP wasn't just about saving jobs, it also helped save businesses.
"Huntington's Whirlwind Courtship of TCF"
American Banker has a great behind-the-scenes look at the second largest merger of 2020, which came together in 45 days.
"BMO to Give Employees 3 Hours of Paid Time Off to Get COVID-19 Vaccine"
Bank of Montreal is making it easier for employees to get vaccinated.
"How Millennials and Gen Z Could Reinvent the Banking Industry"
Millennials will be the largest driver of net new loan growth for the next eight years, according to this piece in Forbes.
"Challenges & Choices in a Low-Trust World"
I've shared one of these decks previously, and I hope you find them valuable. From Bruce Mehlman, founder of the government relations firm Mehlman Castagnetti Rosen & Thomas, it explores the role of trust, which is clearly of importance to bankers. The deck is smart and the last slide has great advice for leaders.
"NY Times Banking Reporter Flitter to Write Book on Racism in Finance"
My former American Banker colleague Emily Flitter is writing a book on racism in finance. "Active, virulent racism permeates the financial system today and it keeps Black Americans from building wealth, pursuing careers and doing basic banking business with the same effectiveness as white Americans," Flitter told Talking Business News. "There needs to be major change, and this book will explore what banks and other companies can do to really address this problem."
"First Look: Amazon's Jaw-Dropping New HQ2 Looks Like a Glass Mountain"
If you haven't seen a photo of the building Amazon is planning for its second headquarters in Arlington, VA., click the link above. It's stunning.
A Hawaii Home Built to Withstand a Hurricane Captures House of the Year Title
I love real estate and I'm glad so many of you do, too. Here's a house you should not miss. This home on the south side of Kauai won The Wall Street Journal's House of the Year contest. Don't miss the photo of the saltwater pool built into lava rock on the edge of the ocean.
------------------------------
Barb Rehm
Senior Managing Director
IntraFi Network
Arlington VA
------------------------------