Weekly News Roundup

------Original Message------

You're all busy and being pulled in a million directions, so I'm keeping this week's roundup brief. News on what the government and the industry is doing in the wake of the coronavirus is aggregated on American Banker's site, and the paper is making all that content free. The bottom line is the government has pulled out all the stops and all the tools it used during the 2008 crisis and the industry is doing its best to meet customer needs and keep staff safe. What started as a trickle – banks closing branches – is becoming more common, and it's one more way banks can contribute to slowing the virus' spread. Of course, a delicate balance must be struck to assure customers they can still access their money through digital channels.

There is one virus-related topic I'd like to raise here and that's borrowing from the discount window. As you likely know, the Fed is encouraging banks to borrow and eight of the largest banks did in an attempt to reduce the stigma attached to going to the window. We got a question about using the discount window from a banker, and because Peer Intelligence is all about bankers sharing information to help each other, please let us know if you're considering borrowing from the window. Or maybe you already have. Please share your experience. There should no longer be a stigma attached to these loans as this a public health crisis, not a financial crisis.

What follows is a few more stories – not a lot – and some have nothing to do with the coronavirus.

"FDIC Nears Decision on ILC Bids as it Floats New Standards for Charter"
The FDIC issued a proposal laying out standards for companies seeking industrial loan charters. Nothing terribly surprising in the plan. The agency then granted the first charters since 2008 to Square and Nelnet.

"New York, California Want More Power Over the Financial Sector"
New York and California are pushing for more control over consumer finance, stepping into a vacuum they believe has been created by lax CFPB enforcement. New York aims to levy larger fines and expand investigatory powers while California wants to devote more money and people to enforcement.

"List of Banks Offering Help to Customers Impacted by the Coronavirus"
Banks are doing all sorts of things to help customers through this uncertain time from extending loan repayments to offering lines of credit interest free for 90 days. If you want to keep up with what the larger banks are doing, BankRate is compiling a running list. The American Bankers Association does, too, and it's a great place to get ideas for things your bank could try.

"Some Bank Branches Run Low on Cash as Customers Make Big Withdrawals"
Some people are freaking out and taking their money out of their banks. If you want a good response to those folks use this line one banker gave The Wall Street Journal: "It's easier to rob you than rob a bank." Amen, and read the next story.

"Toilet Paper, Frozen Foods and Hand Sanitizer Purchases Are Up. So Are Gun Sales"
It never occurred to me that the virus would prompt people to stockpile guns and ammunition, but the people interviewed in this National Public Radio piece said they fear riots and looting and worry the police will not be able to protect them. As if we all don't need more to worry about.

"Coronavirus Has Boomers Asking: Who Are You Calling Elderly?"
A lighter, and far less scary story, notes that 60 is the new 80.

"A Guarded Generation: How Millennials View Money and Investing"
At the opposite end of the age spectrum, The Wall Street Journal devoted a special section on Monday to millennials and their money. This main story and four others have all kinds of insights into understanding your younger customers.

"Cookeville-Putnam Tornado Disaster Relief Fund"
With so much focus on the coronavirus, it's easy to forget other disasters like the tornadoes that hit Tennessee. If you want to donate, click the link above. A community bank in Tennessee, the Bank of Putnam County, is overseeing the funds, according to the Tennessee Bankers Association.

------------------------------
Barb Rehm
Senior Managing Director
Promontory Interfinancial Network, LLC
Arlington VA
------------------------------