Richard's Rapid Fire - September 2, 2016

September 1, 2016

While the Banking Industry Improves, Challenges Persist, FDIC Chairman Says

This week, the FDIC released its Quarterly Banking Profile for Q2, which showed the banking industry posted earnings of $43.6 billion, up 1.4 percent year-over-year. The report attributes this earnings bump to expanded loan portfolios that led to a 4.8% increase in net interest income.  At just 4.5%, the number of unprofitable banks dropped to its lowest quarterly percentage since 1998.  Additionally, the number of problem banks dropped to 147, its lowest level since the crisis high of 888.  Amid these generally positive results, FDIC Chairman Martin Gruenberg noted the persistent difficulties banks face as a result of a continued low rate environment.

For a full analysis of the report, click here.

 

Yellen Signals Possible Interest Rate Hike

During the Federal Reserve’s annual conference in Jackson Hole, WY last Friday, Fed Chair Janet Yellen signaled an interest rate increase could be on the horizon.  She believes the case for a rate raise has “strengthened,” however, the Fed will continue to consider incoming data.  Following Yellen’s remarks, the Wall Street Journal reported traders placed a 24% probability on a September rate raise and a 57% probability on a December increase.  While multiple rate increases remain possible, Fed officials Dennis Lockhart and James Bullard casted doubt on the likelihood of such a scenario playing out.

 

Warren Ally Joins Clinton’s Transition Team

On Tuesday, former Secretary Hillary Clinton named Rohit Chopra, a current special advisor at the Department of Education, to her transition team. Chopra previously served as the CFPB’s Student Loan Ombudsman and was among the Bureau’s earliest hires under the leadership of former CFPB Director and current Massachusetts Senator Elizabeth Warren.  Citing Chopra’s resume and close ties to Warren, Politico speculates this hire could indicate “an aggressive approach to for-profit colleges and student loan companies” under a Clinton administration.

 

The Secret to Increasing Productivity: Punctuality

According to Virgin Group founder Richard Branson, the secret to being productive is remaining punctual.  Branson argues being punctual allows us to effectively manage our time, while also showing consideration and respect for others’ obligations.  When building and maintaining relationships, the bottom line, says Branson, is "all you have in business is your reputation — so it's very important that you keep your word."  Branson’s comments are right on target: To find balance between both our professional and personal commitments, being prompt is an age-old practice which yields dividends to those who make it a habit.

 

M&T Bank Celebrates its 160th Anniversary

On Tuesday, M&T Bank marked its 160th anniversary. Hosting an event at their Buffalo headquarters, an estimated 1,250 bank employees gathered to celebrate this impressive milestone. Congratulations, M&T Bank!

 

Three Things to Know to Be In the Know

United Bankshare’s expansion built on CEO’s ‘let’s make a deal’ approach

Report: CFPB faster to regulate than other agencies

This Is How Badly We're Managing Our Student Debt

 

Lagniappe

Mary Dent was named Chief Executive of Green Dot Bank. Mary has served as a member of Green Dot’s board since 2013.

Paul Wible, Senior Executive Vice President and National Finance Group Head at Bank of the West, will retire at the end of September 2016. Previously, Paul served as Chair of CBA’s Auto Finance Committee.

Chip Knight was hired Hancock Holding Company’s Chief Banking Officer.

Jim Duffy was named Executive Vice President and Chief Human Resources Officer at CIT. Jim also will serve on CIT’s Executive Management Committee.

 

Harland Clarke's Jerry Austin (Middle) met this week with CBA's Melissa Cabocel and Richard Hunt at CBA Headquarters in Washington.