Employee-Owners Revived a Failing Bank Against Odds
Back in 2009, I joined a troubled bank. Our Texas ratio hit over 200% and we were the worst performing bank in Oklahoma. Despite being unable to raise capital, our employee-owners scrappily turned around and rebuilt the pre-statehood bank. More here => https://t.co/WtQ4aKZr7h
Stablecoins Lose Peg During Market Stress, Study Shows
Stablecoin depegging research presentation underway — who knew that stablecoin values deviate especially in times of stress? https://t.co/9gYP7hlTMO
Deposit Insurance Deep Dive Recorded at Cato Institute
Podcasting at the @CatoInstitute headquarters with @EconWithNick & @norbertjmichel was just the coolest as we talk about deposit insurance.
Mark‑to‑market Loans Inflate Fund Equity, Lower Risk Weighting
Funds typically mark to market their loan portfolios and their debt, likely resulting in a significant difference in reported values and actual equity. As a reminder, loans to funds from large banks typically have a lower risk weighting than if...
24/7 Collateralized Funding Essential for Fast Payments
The payments system will only be as accessible as the discount window. We should be able to fund exchange money 24/7 with the ability to draw upon overnight funds that has collateral pledged. Otherwise, liquidity risk elevates with the speed...
SVB's Collapse Stemmed From Mismanagement, Not Banker Incompetence
"SVB did not fail because it was run by lousy bankers." From an exposed deposit concentration leaving over 90% uninsured to mismatching durations of assets and liabilities, this bank failed precisely because it was poorly managed. https://t.co/iu1KAjz53E
Roger Bank Beats X Money with Early Pay, No Fees
Little crazy that we beat X Money @bankonroger - up to 4 day early paydays, no fees, 3.61 APY, under 18 eligible w/ no co-signer, no minimum balance, integrated/signed direct deposit. I love my @tesla, but ROGER is bringing it....
Earn 3.61% APY, No Fees, Support Small Biz
We pay 3.61 APY @bankonroger savings without needing a disclosure about losses….no gimmicks or fees & with FDIC insurance up to $250k per depositor. Plus, your money ignited growth for #smallbiz. https://t.co/8oSpSyhQyM
Credit Unions Deliver the Worst CRE Underwriting in Market
The worst commercial real estate underwriting in our market isn’t private credit (and that’s pretty bad)…it’s credit unions.
Citizens Should Lead New Community Bank Formation
I don’t think this is what community banks had in mind when we advocated for new bank formations. Hope to see more groups of normal citizens, pooling capital to serve their community’s needs.
Excessive Reporting Stalls Small Banks Against Digital Assets
The more reporting you put on banks, the more difficult it is to compete w/ digital assets. We report suspicious criminal activity & should be getting BSA relief not further requirements. The lift for small banks is extraordinary & we...
Stablecoin Rewards Undermine Community Bank Growth
Our savings yield for @bankonroger is 3.61 APY. I’m not worried about competition with stablecoin yields, I’m concerned how it robs community growth. Stablecoin funds gov’t debt while community banks fund community growth.
Fast, Cheap Blockchain Payments Threaten Traditional Financial Trust
The blockchain provides lightning fast, nearly free, payment exchanges w/ abundant opportunities to build a new payments system. It also opens the door to undoing the trust the U.S. financial system is known for. 👇
Nonbank Expansion Fuels Money Laundering, Breaches, Weak Oversight
As we see nonbanks getting more and more involved in lending, payments, holding funds, etc. you’re going to see a lot more money laundering, breaches, and data selling with very little regulatory authority to fine or discipline.
Local Deposits Multiply Community Economic Impact
For anyone curious about how local deposits multiple dollars into the local community, dig out your old Econ 101 textbook or search for “money multiplier”. When you keep your $ in a local bank it feeds the local economy. The...
Erebor Claims to Be More American than US Banks
Love to hear how “more American” Erebor is than the 4,000+ US community banks. We’re certainly not beholden to foreign markets & our owners & customers are our neighbors. Wish them the best, but this is a really strange even...
Banks Cling to $10M Non‑interest Deposits, Risking Obsolescence
Ok, so somehow banks are going to retain a single customer's $10 million in noninterest bearing deposits? Like not pay someone any interest & they'll stay with the bank because they have FDIC insurance? This is such archaic thinking &...
Fee‑Free Accounts Offer 3.61% Savings, 2% Checking
We're fee free and paying high yields here. I'm not worried about the competition, I'm worried about local economies. 3.61 APY savings, 2.0 APY checking at https://t.co/HHwXUb7kB6
Stablecoin Advocates Push Government Loans Over Banks
Wow. Now stablecoin yield advocates are saying that government should provide loans to local communities rather than local banks. What could be wrong with that?
Local Deposits Multiply Small Business Lending, Not Government Debt
Local deposit ➡️ Local loan ➡️ Local growth A $1,000 local bank deposit can support up to $30,000 in #smallbiz lending over 5 yrs. The same $1,000 in stablecoin backs government debt. Local deposits build communities. Stablecoin reserves fund Washington. #banklocal
Stablecoin Payments Question Need for Traditional Rewards
If stablecoin is the future of payments, why do you need rewards? Are there FedNow rewards? ACH rewards? Check writing rewards? Wire rewards?
Gambling Addiction: The Top Financial Threat to Businesses
In my 2 decades in banking, the #1 financial villain is gambling addiction. It’s ruined companies, trusted relationships, marriages, credit, families, careers - talk w/ your people about their activities. Monitor your accounts for heavy ATM usage, online purchases.
Regulators Must Back Bank Innovation Faster Than Crypto Laws
For community banks to have a fighting chance, we must have regulator support of innovation. Even the smallest steps of progress are scrutinized as “novel”. VC Bowman’s efforts should help, but adoption of her new norm must be faster than...
Stablecoins Undermine Local Growth, Not Banks
Local deposits => local loans => local growth. For our 125 years, that formula has built a thriving community. Stablecoin outside of banking destroys local economic growth. The below post makes that clear. Banks aren’t threatened by stablecoin, our local...
One-Time Ownership Verification Required Under New Order
“Under a new order, the institutions only have to verify the ownership of an entity the first time it opens an account, or if there’s reason to believe that the information is no longer reliable.”
Efficient Payments Must Exclude Terrorists and Criminals
It’s time for a more efficient payments system, but access to it has to ensure that bad actors like terrorists, traffickers, money launderers, and other criminals are kept out.
