Vice President Kamala Harris selected Tim Walz as her running mate, an insufferable new buzzword is invading the corporate lexicon, and did you catch the U.S. artistic swim team moonwalking underwater at the Olympics? Here's what else you might want to read this week:
"Regulators Probing Big Banks' Handling of Zelle Scams"
The investigation is focused mainly on how banks respond when customers dispute Zelle transactions. Regulators are also seeking clarity on whether banks are proactively shutting down fraudsters' accounts and vetting new account holders who wind up being bad actors.
Amid mounting political pressure to address Zelle fraud, Sens. Richard Blumenthal, D-CT, and Elizabeth Warren, D-MA, last week introduced a bill to better protect consumers from scams. Ranking member of the House Financial Services Committee Maxine Waters, D-CA, proposed similar legislation in the lower chamber.
"Bank Allies Say FDIC Brokered Deposit Plan Reflects Outdated Thinking"
A new FDIC proposal to tighten controls on brokered deposits and reverse much of a 2020 rule would strain liquidity, increase banks' funding costs, harm fintechs, and restrict community lending, industry players claim.
"Federal Home Loan Banks Face Amped-Up Pressure from Biden Administration, Senators"
Democrats are calling on the FHLBs to allocate at least 20% of their earnings to community development and affordable housing. Additionally, Treasury Deputy Secretary Wally Adeyemo pressed the banks to pool a portion of their unrestricted retained earnings to subsidize housing supply. The heightened pressure feeds into the broader debate about whether the FHLBs have moved too far beyond their mandate and are too focused on generating profits.
"8 Budgeting Ideas That Support Growth"
Prudent budgeting enables community banks to adapt to changing economic conditions while capitalizing on what works for them, this article says. It offers several suggestions, including investing in employee education and data analytics.
"Fed, FDIC Firm Up Living Will Guidance for Midsize Banks"
The agencies added clarity on least-cost determinations, resolution strategies, and foreign bank resolutions, and they pushed back the deadline for banks to file living wills under the new framework.
"Rebeca Romero Rainey: Remaining Nimble Against a Litany of Regulation"
The ICBA president discusses the burdens of the "7,000 pages of new regulations" thrust upon community banks over the past year. She encourages bankers to speak up about how one-size-fits-all constraints affect operations and about the benefits of tiered regulation.
"Branches Remain Key to Community Banking"
The total number of branches may be dwindling, but for many community banks, they're critical to delivering the services and experiences customers seek.
"US Regional and Community Banks Stage Huge Rally in July"
The banking sector vastly outperformed the overall equity market in July, with valuations reaching a YTD high. Community and regional banks led the way, with the share prices of many institutions rising by more than 20%.
"Two Banks Explain Why They Are Going the BaaS 'Middleware' Route"
Lincoln Savings Bank and Vantage Bank discuss their rationale for partnering with "middleware" BaaS provider Unit.
"Failed Nebraska Bank's Ex-President Gets 18 Months Over Loan Scheme"
Jack Poulsen, president of Ericson State Bank from 2010 to 2019, was sentenced to a year and a half in prison for repeatedly making illegal loans to relatives, which ultimately led to the failure of the rural bank.
"Market Turmoil Gives Fed 'License' to Cut Rates"
Progressives are demanding that the Fed cut rates now, while Republicans have warned against doing so this close to the election. However, recent volatility in the equity markets has made the GOP back off a bit. Thus far, Chair Jerome Powell has followed the advice of Rudyard Kipling, remaining calm while everyone else loses their minds and blames it on him.
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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi
Arlington, VA
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