US Banker articles from May 2009

US Banker archives from May 2009

Schumer Bill Should Be Tabled - For Now; There's also the question of demand. Yes, the intent of the government's alphabet soup of stimulus efforts-TARP, TALF, PPIP-is to unfreeze the credit markets, but the fact remains that quality loans are still hard to come by these days.(Commentary)
May 1, 2009... Byline: Alan Kline, Editor-in-Chief Next to taxation, no issue stirs up as much passion in the war between banks and credit unions as business lending. Business loans can make up no more than 12.25% of a credit union's assets, but for...

Sponsorships Scare Some Despite Revenue Upside; Several TARP recipients would rather curtail sponsorship spending than risk the ire of Washington. But they may be losing out on new business at a time when they need it most.(Marketing)
May 1, 2009... Byline: Anthony Malakian Before TARP, bank executives would primarily base sports sponsorship decisions on one key criteria: bang for the buck. What started with Congress demanding that Northern Trust reimburse the government the...

AD Beat: The Benefits of Youth; Untainted by toxic loans or bad press, NUVO Bank & Trust aims to make a name for itself in Western Massachusetts.(Marketing)
May 1, 2009... Byline: Anthony Malakian One outcome of these times is that de novo banks actually have an advantage as the new kids on the block. As troubled competitors try to unwind problem assets from distant headquarters, a startup's message can be...

The Repercussions of Reform; While the industry is urging policymakers to proceed slowly, some bankers are hopeful that a key proposal advocated by the Treasury - raising capital levels on the too-big-to-fail institutions - could help them regain market share they have been losing steadily for years.(Cover Story)
May 1, 2009... Byline: Michael Sisk The nation's financial regulatory system needs fixing, and bankers can be certain changes are coming. But after months of Congressional hearings, debates and some hysterics, that's still about all the industry knows...

States and Cities Lend a Hand on Main Street; It's not just the federal government creating programs to stimulate small-business lending. State and local financing agencies are chipping in as well.(Small Business Economic Development)
May 1, 2009... Byline: Anthony Malakian If small businesses are the "heart of the American economy," as President Barack Obama said in March, then several state and city development authorities are acting as defibrillators by giving them a jolt of...

If You Can't Beat 'Em, Might as Well Join 'Em; While its rivals remain committed to building remittance programs of their own, U.S. Bank opts to team up with the industry's undisputed leader, Western Union.
May 1, 2009... Byline: Maria Aspan Though some bankers are encouraging the industry to compete against remittance specialists, U.S. Bancorp, which has tried doing so, says it makes more sense to continue working with such firms. The Minneapolis company...

Will Dismal 2008 Give Way to a Banner 2009? Volume plunges for second straight year; Wells is No. 1 originator, and BofA, thanks to its Countrywide acquisition, is now tops in servicing.(Brief article)
May 1, 2009... Byline: Alan Kline With home values plummeting and consumer confidence weakening by the month, the volume of mortgage loan originations in 2008 fell below $2 trillion for the first time in any year this decade. But National Mortgage News,...

Residential Servicers; As of December 31, 2008 (dollars in millions).
May 1, 2009... Servicing Volume ($M) Rank Organization Name 2008 2007 % Change 1 Bank of America (1) Charlotte, NC $2,056,463 $516,937 298% 2 Wells Fargo & Company (2) San Francisco, CA $1,780,884 $1,473,178 21% 3 Chase (3) Iselin, NJ...

Residential Originators; As of December 31, 2008 (dollars in millions).(Consumer Finance (mortgages))
May 1, 2009... Origination Volume ($M) Rank Organization Name 2008 2007 % Change 1 Wells Fargo & Company (1) San Francisco, CA $234,767 $271,931 -14% 2 Chase (2) Iselin, NJ $187,087 $210,308 -11% 3 Bank of America (3) Charlotte, NC $182,213...

Workout Niches Evolve For Problem Projects; Instead of surrendering failed construction and developer loans to the vultures, banks are bringing in troubled-asset specialists to help salvage their portfolios.(Corporate & Institutional Finance (commercial real estate))
May 1, 2009... Byline: Glen Fest While banks have pretty much taken down the help wanted signs in their branches and loan offices, there is one position that many can't fill fast enough: the commercial real estate workout specialist. With half-built...

Major Shift: Wirehouse Veterans Eye Bank Brokerages; Once considered minor-league, the units are getting a second look from financial advisers who have spent their careers at big-name firms.
May 1, 2009... Byline: Steve Garmhausen A few years ago, John Noble never could have imagined that he'd be running the brokerage arm of a modest-size commercial bank. A two-decade veteran of Dean Witter, Smith Barney and UBS Financial Services, Noble had...

CHARTER CONVERSION: The Other Bailout; Frustrated by the cost of rescuing the corporates, more credit unions are considering switching to mutual savings banks.
May 1, 2009... Byline: Anthony Malakian The pace of credit unions converting to mutual savings banks has slowed considerably in recent years, largely because a number of credit unions that wanted to switch charters gave up after running into roadblocks...

DoJ Fast-Track Options Speed Banking Antitrust Reviews.(OpEd)
May 1, 2009... Byline: Jonathon M. Rich and Thomas G. Scriven, Morgan Lewis & Bokius LLP In the current environment, bank mergers are often arranged hastily - sometimes at the behest of the government - to stave off an imminent failure. The speed...

Don't Count on the Consumers This Time; Increasing the availability of consumer credit to restart the economy won't work. More lending to small business would create something the country really needs now-jobs.
May 1, 2009... Byline: Joseph Rosta TARP beneficiaries have been urged by White House and legislators to redirect a large portion of the federal cash into consumer loans. Lend so the economy can mend. True, the rhetoric has cooled recently. President...

Correction.(Correction notice)
May 1, 2009... A story on page 24 of the April issue, "When Friends Don't Want to be Friends with Bankers," was incorrect in saying that Independent Bankers Bank of Florida charged off 10.54% of its loans in the fourth-quarter. That is an annualized figure....

Scene and Heard.(Front and Center)
May 1, 2009... "In my career, this is the first time that a de novo can be advertising strength versus the larger competitor, when, in contrast, it used to be the exact opposite." Scott Reed, CEO of Oakworth Capital Bank, on the effects of the banking...

Hits and Has-Beens.(Marty Lippert resigned as chief information officer at Citigroup)(Brief article)
May 1, 2009... Marty Lippert resigned as chief information officer at Citigroup, after less than one year on the job under Vikram Pandit. Citi chief administration officer Don Callahan will fill the role until a replacement is named. Also at Citi, chief...

FreshInk.(Front and Center)(Brief article)
May 1, 2009... 1. Union Bankshares Corp. in Bowling Green, Va., is buying First Market Bank in Richmond for $105.4 million in stock. As of April 7, it was the largest deal announced in 2009. 2. The $4 Four billion-asset Great Western Bank of Watertown,...

Noted and Noteworthy.(Word Is...)(Conference news)(Brief article)
May 1, 2009... Personal finance management site Mint.com used the platform of the SXSW music, film and interactive conference in March to announce its one-millionth user milestone. But Mint's claims to widespread user adoption deserve some scrutiny, says...

Will Close Vote Doom Card Reform? Dodd signals willingness to make a deal, but with some Democrats breaking ranks, getting his bill through the Senate could be a tall order.(The Inside Track: Policy, Players and Politics)
May 1, 2009... Byline: Stacy Kaper Although the Senate Banking Committee has voted to adopt comprehensive credit card reforms, the close margin cast doubt on its odds for enactment. The 12 to 11 vote on March 31 included no Republicans, and one...