A somewhat abbreviated Friday Follow-inspired post (coming to you from the great state of Missouri). On this Good Friday, I’m keeping things simple and sharing “just” three things I learned this week.
- Of the news this week, Senator Tim Johnson’s announcement that he will not seek re-election in 2014 is especially noteworthy. Why? Well, the Democrat from South Dakota chairs the powerful Senate Banking Committee. His departure, according to this report from the Wall Street Journal, sets the stage for a hotly contested race to succeed him. This should interest many bank executives; “while he is regarded as sympathetic to the concerns of financial firms that operate in his home state, including community banks, Mr. Johnson has also fought GOP attempts to roll back or water down portions of the Dodd-Frank financial overhaul law.” I wonder if the next chair will push for legislation to breakup the big banks as the committee has discussed? As you can read in the American Banker (subscription required), guessing has already begun.
- While I’d like to move off the topic of legislation and regulation, our own Chairman forwarded a client alert from the law firm of Goodwin Procter that kept my attention on rules and procedures. The title, Nasdaq Proposes Rule Requiring Internal Audit Function at All Listed Companies, says a lot. As you dig in, you’ll see this would go into effect by year-end. From a bankers point-of-view, financial institutions that are publicly traded already face the pressure of doing more with fewer resources. Every business function, including internal audit, is expected to bring value to an institution. So, much like the Senator’s announcement, this proposed rule is one to watch.
- Finally, on the payments front, there’s been a lot of talk about the mobile consumer and his/her mobile wallet. For example, how Google Wallet poses a threat to big banks that make $$ off of card products. Yes, mobile devices have increasingly become tools that consumers use for banking, payments, budgeting and shopping. However, in this WSJ article (Consumer Using Phones to Bank, but Not Buy) we’re told “Americans are increasingly using their phones to avoid a trip to the bank, but they still have little interest in having mobile devices replace their wallets.” The piece builds on the results of a Federal Reserve survey released on Wednesday. The Fed finds the adoption of various tools isn’t as robust as one might be led to believe. If you have the time, it might be worth downloading the Fed’s results.