Richard's Rapid Fire - July 15, 2016

Bank’s Q2 Earnings Reports

Kicking off second quarter earnings reports, JP Morgan Chase sprinted out of the gate by posting a profit of $1.55 per share, compared to an estimated $1.43 per share.  Following suit, Citi reported profits of $1.24 per share, compared to an estimated $1.10 per share.  Rounding out the week, Wells Fargo held steady with earnings of $1.01 per share.  We look forward to seeing all our member banks’ reports in the coming days and weeks. 

 

Presidential Election Kicks Off

With the pick of Gov. Mike Pence (R-IN) as Donald Trump’s vice president, the presidential race has really begun.  Secretary Clinton could announce her pick any day now.  And on Monday, the GOP convention commences in Cleveland.  For you political junkies out there, I visit RealClear Politics for all my news and poll numbers.

 

Get Hip: A Banker’s Guide to Pokémon Go

With over 15 million smartphone downloads, Pokémon Go has remade the trading card game into a virtual world captured in the palms of users’ hands.  Seizing upon the Pokémon Go craze, Citizens Bank of Edmond is providing gamers with a real life “pokestop” to rest and recharge.  The Oklahoma bank has taken the game’s popularity and turned it into an opportunity to interact and engage consumers.  As the prevalence of mobile and digital technology grows, banks must continue to meet consumers on platforms familiar to them. 

An A to Z guide to the game may be found here.

Pokemon Go's Bulbasaur awaits his afternoon appointment with CBA President & CEO Richard Hunt.

 

Private Student Loans Continue to Perform Well

Last Friday, MeasureOne released its semiannual report on private student lending.  With delinquency and charge-off rates improving to their lowest rates since before 2008, the private student loan market, though just a tiny fraction of overall student lending, continues to serve students and their families well.  Strong underwriting standards and flexible repayment plans continue to drive declining delinquencies and high repayment rates.  CBA member banks are proud to partner with students in achieving the goal of higher education.

 

Public Servants Should Possess Merit, Substance & Expertise

This week, Sen. Elizabeth Warren received credit when news broke the Democratic draft party platform included language that could preclude bankers from public service.  As I told Politico’s Ben White, by Sen. Warren’s logic, we should expect the calling for the exclusion of doctors at the Food and Drug Administration, scientists at the Environmental Protection Agency, and politicians in Congress.  Conflict of interest allegations apply just as easily to each of these professionals as anyone in the financial services sector.  The reality is we should be asking the finest professionals in every sector – those with merit, substance, and expertise – to be serving in government.

Sen. Warren also made headlines when the Boston Herald reported her sizeable holdings in several large banks.  You read that right! Per Sen. Warren’s most recent Senate disclosures, she holds more than $100,000 at each of the following banks: Capital One, Synchrony, and Bank of America. Additionally, she holds between $2.2 million and $7.6 million in 13 different mutual fund accounts.  With investments like these, it would appear Sen. Warren places a great deal of trust in our nation’s larger banks and financial institutions. 

 

Citi Tests Surcharge-Free ATM Service

This week, Citi announced a new pilot program which will offer surcharge-free ATM access to the customers of 16 credit unions and minority-owned banks.  The program will reach more than 300,000 consumers within six major cities, including Chicago, Los Angeles, Miami, New York, San Francisco and Washington.  Speaking about the program, Will Howle, Citi's head of U.S. retail banking and CBA board chairman, noted Citi’s commitment to provide consumers with access to safe, affordable financial products and services.

 

CBA Welcomes Wealth Management Working Group

CBA HQ was bustling this week as the CBA/BISA Wealth Management Working Group visited Washington, D.C. for their semiannual in-person meeting.  It was great meeting with Ralph Borrello, Head of Wealth Management at BB&T, Sam Guerrieri, Senior Vice President at M&T Securities, Inc., Michele Imbasciani, Managing Director at Citigold, Mike Miroballi, President of BMO Harris Financial Advisors, Vance Richard, Senior Vice President/Program Manager at Iberia Financial Services, LLC, LeAnn Rummel, Executive Vice President and National Sales Manager at Cetera Investment Services, and Stuart Thompson, US Head, Premier Banking Strategy and Segment Management at BMO Harris Bank.  We had a lively discussion regarding the Department of Labor’s proposed fiduciary rule, integrating wealth management with retail banking, and robo advisors.

CBA's Wealth Management Working Group met this week and discussed the proposed Department of Labor fiduciary rule, integrating wealth management and other topics at CBA World Headquarters in Washington, D.C.

 

CBA Welcomes Our Newest Associate Member

Hailing from Omaha, Nebraska, I am proud to welcome D3 Banking to the family!

 

Three Things to Know to Be In the Know

LendingClub’s Newest Problem: Its Borrowers

Personal loans are surging for the best borrowers

U.S. Regulator Flags Auto-Lending Risks

 

Lagniappe

Kevin Blair was named Executive Vice President and CFO by Synovus Financial. Kevin will take over the position on August 17.

 

Former CBA board member Carrie Tolstedt will retire as Wells Fargo’s head of community banking at the end of 2016.  She will be succeeded by Mary Mack, who currently runs the bank’s national retail brokerage unit Wells Fargo Advisors.

 

Database Manager Tammy Morgan's 10-year old daughter, Mekayla, brightens our conference room decor at CBA Family Day luncheon this week in Washington, D.C.

 

(L to R) CBA's Kris Fallon and Maggie Seidel await Steve Zeisel's next move during a heated Jenga match at CBA Family Day luncheon this week.

 

Four-year old Sammy Berkey, son of Marketing & Communications Manager Angie Berkey, prepares for his career in retail banking at this week's CBA Family Day luncheon.