Financial Regulators

There, did I get your attention? … Tonight’s headlines say it even more clearly – see this Wall St. Journal story titled “Merchants Win Debit-Card Fee Battle“. Or, see this post on PaymentsNews.com about the Durbin compromise announced earlier today. Seriously, it seems to me that there’s a bit of a sleeper buried in all […]

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I’ve been amazed by what I’ve been reading of late from the “analyst” firms commenting on the Durbin Amendment. A lot of what I’ve seen makes me wonder whether these folks should turn in their analyst licenses and simply register as paid lobbyists for their big bank clientele. (The Durbin amendment, for those not in […]

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The dramatic vote on the Durbin amendment is causing panic, again, among retail bankers – who were last shocked by the Fed’s overdraft ruling.  I wrote about that in November (Watch Out! Big Changes in Retail Bank Pricing Are Coming). I think the underlying problem that banks are dealing with is that too much of […]

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A few weeks ago, Glenbrook issued a challenge to Payments Views readers: “What Are the Best Ways for Banks to Replace Lost Overdraft Fee Income?“ Given how significant the financial hit will be (JPMorgan Chase estimates a 2010 impact of $500 million after-tax), we thought we’d at least get some good ideas. Well, we got […]

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Bank income from debit card overdraft fees is variously estimated as $25 billion to $38 billion annually. The recently announced Federal Reserve Bank regulations requiring opt-in procedures will result in a gigantic hit to retail bank P&Ls, as we wrote about recently. JPMorgan Chase, for example, in a recent investor presentation, estimated the impact of […]

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Consistent with the current government focus on enhancing consumer protection, the Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act of 2009) brings sea changes to the credit card industry. Forward-looking financial services institutions are viewing these shifts not as a reactive compliance and operational exercise, but more broadly in anticipation of […]

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In just 30 days, on September 18th, the new International ACH format – IAT – and accompanying NACHA rule changes go into effect. This is the most significant change to the ACH network in decades, affecting corporate payment initiators, financial institutions of all sizes, financial software companies, and payment service providers. The new rules have […]

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Many of us in the United States who follow the continuing evolution of the ACH network have been interested in the United Kingdom’s “Faster Payments” initiative.  FP just hit the one-year-since-launch milestone.  I spoke with David McFarlane, Company Manager, CHAPS Clearing Company about FP.  I was surprised by much of what he said: FP is […]

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In case you’ve been wondering where things stand with government bailout funds the WSJ has an interactive graphic. You can sort by program (Automotive Industry Financing Program, etc.), by recipient company, by date, by amount, etc. (hat tip to Barry Ritholtz)

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Amid increased government ownership of Citibank, persistent rumors that BofA is next, and announcement of the Obama administration’s budget, there has been increasingly loud debate over bank nationalization. The media pundits and blogosphere are a cry with claims of pending socialism and the “Europeanizaton of America” – which, while provocative, aren’t necessarily true.

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In honor of the Oscars this evening, a post on banking and the movies. Last week the film The International opened, featuring Clive Owen and Naomi Watts. The film is about evil, murderous bankers – the bad bank in the movie resembles an International sinister organization out of a James Bond plot. As it turns […]

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Somehow the issue of how to compensate the management of America’s crippled banks has becoming a more compelling topic than the more fundamental question of how to (or whether to) rescue those banks.   Michael Kinsley jumps into the middle of this debate in today’s Washington Post with an article titled “Banking for Dummies”, poignantly […]

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At Forte Financial Glenbrook Partners we’ve been gripped by the credit crisis, yet drowning in news and data. We suspect that you, too, would appreciate a guide to the gems of insight and plainspoken verbiage that explain, question, and illuminate these unprecedented times. So we’ve selected the best of the coverage – an admittedly subjective […]

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We were intrigued by this week’s announcement that the FDIC had issued enforcement actions against two banks (and reached a settlement with a third bank) related to their sponsorship of credit card programs promoted by CompuCredit. These actions follow a lawsuit by the Federal Trade Commission against a subsidiary of CompuCredit alleging deceptive practices in […]

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