Banking with Interest

Matt Pieniazek, president of Darling Consulting, and Dave Koch, managing director of advisory services with Abrigo, discuss strategies for banks to navigate the challenging deposit market as the Fed nears the end of its rate hike cycle. Will the Fed raise rates again, how long will rates stay high and how best can banks prepare?

Jonathan Gould, partner with Jones Day and a former general counsel of the Office of the Comptroller of the Currency, makes a case that the federal banking agencies are increasingly pushing the envelope even as courts become more skeptical of their powers. He also discusses the dangers of focusing too much on the safety of individual institutions at the expense of the overall risk to the system. 

Kevin Fromer, president and CEO of the Financial Services Forum, details why the big banks are pushing back vigorously against a new proposal to raise capital at the largest institutions by 20%, arguing it is unnecessary and could cost the U.S. economy at a critical time.

Steven Kelly, associate director of research at the Yale Program on Financial Stability, pushes back on multiple narratives about why SVB failed and what policymakers should do to prevent another collapse like it. He also weighs in on federal regulators’ new capital proposal and the battle over stablecoin regulation.

Aaron Klein, senior fellow in economic studies at the Brookings Institution, talks about why he is skeptical of the impact of FedNow, the central bank’s instant payment system due to launch this week.

Sean Tuffy, former head of market and regulatory intelligence at Citigroup, talks about how the changing dynamics at Twitter may impact bank policy and media narratives. He also discusses crypto and stablecoin legislation, money market mutual fund reform, and the lessons of Silicon Valley Bank’s failure.

John Heltman, Washington Bureau Chief of American Banker, talks about federal regulators’ pending proposal to raise capital on banks with more than $100 billion of assets. He tackles how that fits into the overall Basel capital plan, how banks and Republicans are planning to fight back, and what kind of impact it could have on bank lending.

 Tim Wennes, the CEO of Santander US, talks about the future of regional banks, including the potential for higher capital requirements and a possible credit crunch. He also weighs in on fears around commercial real estate, why the bank is expanding its auto lending business, and how it is targeting the next generation of bank customers. 

Lindsey Johnson, who started last summer as the head of the Consumer Bankers Association, discusses how policymakers are reacting to the recent banking turmoil, why the CFPB’s credit card late fee proposal will harm consumers, and whether regulators will allow more M&A.

Last week saw a remarkable number of Capitol Hill hearings on the bank policy front, with multiple sessions featuring top bank regulators and the former chief executives of three failed banks. Claire Williams and Kyle Campbell, reporters with American Banker, offer their takeaways and remaining questions from these hearings, including what comes next from lawmakers and regulators.