Banking with Interest

It’s been another hectic week in the financial regulatory world, with Democrats unexpectedly outperforming in the midterm elections while separately another crypto meltdown ensued. But what will this mean for bankers? John Heltman, the Washington Bureau Chief of American Banker, and Brendan Pedersen, the financial services reporter for PunchBowl News, provide analysis on Democrats keeping the Senate, Rep. Patrick McHenry as the likely chairman of House Financial Services Committee, and whether the crypto news adds momentum to a stablecoin bill. They also discuss Twitter's nascent plans to become a payments company and offer money market products.

Aaron Klein, the Miriam K. Carliner Chair and senior fellow in Economic Studies at the Brookings Institution, discusses how the growth of stablecoins could hurt banks, why financial inclusion isn’t going to be solved by a central bank digital currency and why D.C. always wants to give the Federal Reserve more power.

Two journalists who have covered the CFPB for years grapple with the bewildering array of questions stemming from the recent federal appeals court ruling that said the agency’s funding is unconstitutional. What happens if the Supreme Court upholds the ruling? And how long will it take for the issue to be resolved?

Emily Flitter, a senior banking reporter for the New York Times and author of The White Wall: How Big Finance Bankrupts Black America, discusses why she decided to write the book, what she uncovered, and how discrimination continues to be a formidable challenge.

Two experts on banking and politics – Cam Fine, the former CEO of the Independent Community Bankers of America and Ed Yingling, the former CEO of the American Bankers Association – talk about how the different election outcomes will affect the industry. That includes a look at what legislation is likely to pass if the GOP seizes the House and Senate, and what agencies and rules Republicans will target.

Matt Pieniazek, president and CEO of Darling Consulting Group, talks about what banks are doing right—and wrong—as they adjust their balance sheets to the Fed’s unprecedented recent rate hikes. He warns of the most common mistakes banks are making, and how to fix them.

Howard Headlee, the president and CEO of the Utah Bankers Association, takes issue with some bankers’ concern that industrial bank applications by Ford and Rakuten will blur the lines between banking and commerce. He also sharply criticizes banks that sell to credit unions and predicts there will be a legal battle over CRA reform.

Corey LeBlanc, cofounder, chief operating officer and chief technology officer of Locality Bank in Florida, talks about how he and his partners got through the notoriously difficult regulatory process to charter a de novo institution. Why did they succeed where so many others have not? He also talks about what Locality Bank is doing differently than other institutions, including its approach to fintech partnerships.

Alex Marsh, head of global policy at Klarna, talks about the company’s response to the CFPB report last week that called for buy-now, pay-later firms to be regulated and examined like credit cards. He also discusses the growth of the sector, including the recent drop in valuations for BNPL firms, and where he sees it going next.

Darrin Williams, the CEO of Southern Bancorp. in Arkansas, talks about how a huge capital infusion from the Treasury Department’s Emergency Capital Investment Program is changing his bank and how similar infusions are impacting fellow community development financial institutions.