Bankshot

The Consumer Financial Protection Bureau was created to protect the people from financial predation. But there are very different interpretations of what that means, and whether the people should be protected by — or from — the government.

A regulatory proposal to raise bank capital has spurred banks to fight back with a populist appeal to consumers, while regulators say more capital is what's needed to save banks from more crises — and help consumers.

The Federal Reserve, historically a secretive and isolated institution, has made a concerted effort to explain itself to and be understood by the public since 2008. But try as it might, the central bank is still viewed by many as an enigma, if not an enemy.

Senate Banking Committee Chairman Sherrod Brown faces a tough 2024 campaign to recapture his Ohio senate seat in a state that's increasingly Red. Can the same state that elected conservative populist firebrand J.D. Vance also re-elect Sherrod Brown? And what do the political undercurrents apparent in Ohio mean for banks? 

American Banker editor-in-chief Chana Schoenberger and Washington bureau chief John Heltman talk about the new season of Bankshot, which explores how populism has emerged as a driving force in financial regulation.

The number of businesses shifting to an employee ownership model has ballooned in recent years, and experts say that trend is likely to accelerate. That could have important implications for banks aiding that transition and for the future of small business lending.

How the next generation of payments technology is being developed in fields such as public transit, sports and long-haul trucking.

The failures of Silicon Valley Bank, Signature Bank and First Republic brought to light the Federal Home Loan Banks' role as a ‘lender of next-to-last resort.' Some critics say that the review from the Federal Housing Finance Association should bring the system back to its original purpose of oiling the mortgage finance market. 

A string of big bank failures this spring has cast all manner of regulatory policies into question, but perhaps the most vexing — and most consequential — is the relationship between banks and their government supervisors. But changing an already changing supervisory culture is easier said than done.

In the aftermath of last year's racially motivated mass shooting in a predominantly Black community in Buffalo, New York, American Banker reporter Allissa Kline explores what responsibility banks have to help segregated, impoverished communities that were shaped in part by past discriminatory lending practices.

Fintechs created earned wage access so cash-strapped employees could get an advance on their next paycheck to cover urgent expenses. Some say repeat usage of fee-based EWA resembles a payday loan, sparking debate over whether regulators should call EWA a loan. 

The demise of FTX, a prominent crypto exchange, late last year, has left the crypto industry grappling with the consequences and uncertainties left in its wake. As the crypto sector teeters on the edge of more forceful regulation, the aftermath of FTX's explosion has revealed deep fault lines within the industry and increased banks' already healthy level of caution towards the technology, especially after more crypto-aligned banks failed in 2023. The once-unified industry now faces a turbulent next few years. In this episode of BankShot, we delve into the implications of FTX's downfall and its lasting impact on banks, the crypto landscape, and the emerging path towards regulatory clarity and stability.

Holy Trinity Baptist Church Federal Credit Union has about $24,000 in assets, making it one of the smallest credit unions in the U.S. But it has survived and thrived over the past 50-plus years with low overhead and a small but loyal membership.

The failures of Silicon Valley Bank and Signature Bank sent a shockwave through the financial system. Even if the worst is behind us, the event will have enormous consequences for banking regulation and supervision for years to come.

Consumers who aren't proficient in English have long struggled to get help from banks in their preferred language. Banks and regulators are trying to fix that, but the solution has taken years.

A reporter tried for more than two years to speak with Michael Bacon, the megabank's former chief security officer. Bacon eventually sat for around 30 interviews, painting a detailed picture of the Wells executive suite as the fake-accounts scandal unfolded.

Frustrations with gatekeeping, a lack of diversity and the way home appraisal is overseen are spurring many practitioners to call for an overhaul of the industry's governance structure.

Democrats are disfavored in this year's midterm elections, but several factors are keeping races close. The outcome will affect the bank regulatory trajectory for at least the next two years.

Congress is expected to pass the SAFE Banking Act by year-end in one way or another. Bankers can learn a thing or two from others who have already taken the plunge.

Russia's invasion of Ukraine has isolated the nuclear power from much of the Western economy, worsening already fraught global supply chains and increasing uncertainty. But it can still get worse.

Decentralized finance, or DeFi, could revolutionize the way money works, how it is controlled and how its power is distributed. But is DeFi the future or hype?

The banking industry has been working to beat back a proposal that would require banks to disclose certain customer account information to the Internal Revenue Service. But even if they succeed, the problem of unreported taxable income isn't going away.  

Immigrants transfer billions overseas every year, and that market is dominated by nonbanks, crypto and fintechs. Those services could help banks get more customers in the door, but it's easier said than done.

Many fintech companies are offering quality, low-cost services to people who are left out of mainstream banking. But low-income consumers face barriers that technology alone can't solve. Featuring: Jennifer Tescher, President and CEO, Financial Health Network Joseph Bayen, Founder and CEO, GrowCredit Kathryn Petralia, co-founder, Kabbage Jelena McWilliams, Chairman, Federal Deposit Insurance Corp. Dan Henry, CEO, Green Dot Terri Friedline,Associate Professor of Social Work, University of Michigan  Darrin Williams, CEO, Southern Bancorp.

The Basel III reforms initiated after 2008 and the hard-fought Basel IV provisions completed in 2017 made banks more resilient. International consensus on new challenges like climate change and cybersecurity could be impossible.

Hackers are targeting banks more frequently and more effectively. There's not much the industry or government can do about it. Featuring: Paul Benda, SVP of Operational Risk and Cybersecurity, American Bankers Association Mark Stamford, CEO, Occamsec Nathan Taylor, Partner, Morrison & Foerster Brian Vecci, Field CTO, Varonis Chris Wolfe, Managing Director, Head of North American Banks, Fitch Ratings

Digital currencies are exploding in popularity but are still a long way from being integrated into the financial system.   Featuring:  Marc Hochstein, executive editor, Coindesk Greg Baer, President and CEO, Bank Policy Institute Karen Petrou, managing partner, Federal Financial Analytics Jo Ann Barefoot, founder and CEO, Alliance for Innovative Regulation   Peter Dugas, executive director, Capco Thomas Hoenig, distinguished senior fellow, Mercatus Center at George Mason University

Institutional independence is a big part of what makes the Federal Reserve work. But quantitative easing, new forays into climate and digital currency and a blurring of the line between monetary and fiscal policy might make that independence harder to maintain.

Indigenous reservations have some of the highest concentrations of unbanked Americans in the country. But tribes are finding ways to get things done — with or without banks.

Europe has encouraged adoption with rules that put consumers in control of the way their data is shared among banks, fintechs and third-party vendors. Whether the U.S. can make similar progress without its own rules is unclear.

Regulators around the world are exploring how to assess banks' exposures to climate change risks. But they'll have to tackle legal, economic and modeling problems that don’t have obvious solutions.  

Looming defaults and the potential for heavier regulatory scrutiny have prompted banks to pull back from the sector. Is that a good thing?

Retail investors revolted against institutional investors by buying heavily shorted stocks in January, reanimating regulatory concerns about short selling and market manipulation. But is shorting a check on speculation, or a driver of it?

The Federal Reserve has the authority to lend to nonbanks in an emergency, and it isn't afraid to use it. But is that authority too broad — or too narrow?

Like in the industries its reporters cover, the lack of Black representation in business and financial media has created blind spots. Predominantly white newsrooms often miss stories about systemic racism or fail to reach an audience of more than one demographic. In the wake of this summer's Black Lives Matter protests, there are serious implications for financial services, the reporters covering them — and an emerging group of professionals creating their own media. What can journalists like us learn from these Black voices? 

Asset and capital allocations often exacerbate systemic racism across the financial services in some surprising ways. Innovators in the fields of asset management, banking, impact investing and pensions suggest there are also many ways to disrupt the cycle. Shifting the flow of capital could help reduce or eliminate institutional barriers and racial discrimination.

President-elect Joe Biden will likely have to contend with a Republican-controlled Senate. That could have important implications for his approach to financial services policy.

The lack of Black representation in the financial services stems from two interconnected problems. Black professionals face significant hurdles once they break into the industry. And the presence of nearly 175,000 Black financial professionals displays that their widespread absence at the upper executive ranks isn’t a product of there being an insufficient talent pool.

The success of some fintechs in getting bank charters this year only underscores how onerous the process remains for many others. That’s unlikely to change unless policymakers reconsider what it means to be a bank.

Racism at the branch and in the workplace makes it harder for Black Americans to gain access to financial services. In the second episode of the Access Denied podcast, innovators and researchers from the fields of human resources, banking and wealth management explain how industries leave people out — and what needs to be done to change it.

A Federal Reserve-issued digital dollar could speed up payments, expand financial access and reduce financial crime. But it also brings trade-offs that policymakers are only just beginning to consider. 

In this featured episode from the Arizent special series, net worth disparities and the roles housing and mortgage discrimination play in Black homeownership show how it's impossible to close the gaps without eliminating racism.

A disputed outcome could cause significant market turmoil in the coming months — and have far more serious repercussions over the longer term.

The fees have helped banks recoup costs of free or low-cost checking accounts for decades, but they can penalize low-income customers and drive them away from banking. Is there a better way?

For decades lawmakers have ignored broad structural flaws in the National Flood Insurance Program, which underpins millions of home mortgages. And the problem is only getting worse.

The stock market has reached record highs despite rampant unemployment, recession and a global pandemic. What gives?

With the USPS emerging as an election-year flashpoint, postal banking is an idea that could gain steam. But a number of proposals are out there, and they have widely varying implications for financial inclusion.

As the discredited Libor interest rate benchmark enters its last months, some banks are turning away from the repo-based alternative that regulators prefer. What could go wrong?

Regulators are urging banks to offer small-dollar loans again and lifting existing restrictions on nonbank lenders. But the real challenge is making those loans favorable to consumers without losing money.

While most of the public attention has been on Joe Biden's lead in presidential polls, any true overhaul of the bank regulatory landscape hinges on whether Democrats can retake the Senate — and by what margin.

The 2008 financial crisis transformed banking regulation. But how have those changes held up in the current recession, and what might be coming next?