Bank Talk

Back in the Day: Who Said What about Subprime Lending

Adam Rust — Thu, 23 May 2013 16:02:05 +0000

“The Power of Yes” Answer: Kerry Killinger, CEO of Washington Mutual and Long Beach Mortgage. Word is that WaMu’s Chief Credit Officer countered that he believed in “The Wisdom of No,” but he got shouted down. Kerry Killinger was named “Banker of the Year” by American Banker in 2001. When things went bad, the Chief [...]

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Bank Notes: GSEs, 90/10 Rule, Sequestration

Adam Rust — Tue, 21 May 2013 18:20:06 +0000

GSE Reform: One analyst suggests that anyone investing in Fannie or Freddie right now is making two bets: one that the GSEs will remain profitable, and two that real GSE reform is not going to happen any time soon. Senator Bob Corker has introduced a bill that would leave shareholders with nothing: “If Treasury were [...]

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World Acceptance Updates its Rule of 78ths Accounting Trick

Adam Rust — Mon, 20 May 2013 17:15:37 +0000

In a sector where relative differences in competing products can range from bad to really bad, World Acceptance has a payday loan product that uses accounting tricks to mask where its consumer installment loans fit on that spectrum. World Acceptance keeps the books on its high-cost loans using an unusual accounting device known as the [...]

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Retirement Savings: Mostly Bad News

Adam Rust — Fri, 17 May 2013 19:28:09 +0000

Only about one-half workers have a job that offers a retirement savings plan. Of that minority, only forty percent choose to participate. Less than seven percent “max out” on their 401 (k). For people that live to be 65, odds are that they will survive for at least another two decades. People today are going [...]

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Fannie Mae Back from the Ashes

Adam Rust — Thu, 16 May 2013 16:40:56 +0000

Fannie Mae is back from the dead, having reported that its quarter-2013-over-quarter-2012 net income tripled. When coupled with a large gain from a positive development on future tax liabilities, the company’s earnings rose to almost $60 billion. For some time, FNMA shares have been treading at 80 cents per share. Last Friday, they closed at [...]

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Who is B of I Federal Bank?

Adam Rust — Mon, 13 May 2013 18:12:09 +0000

While initial disclosures linked a California bank to the Jackson Hewitt Smart Line of Credit, the most recent information about one of this year’s tax time loans connects it to B of I Federal Bank. Yet more review suggests that Jackson Hewitt may have published inaccurate information on its disclosure. B of I says that [...]

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The Zombie Foreclosure Dance

Adam Rust — Fri, 10 May 2013 09:52:07 +0000

Here is a humorous take on a new pitfall in the ongoing effort to address the impact of foreclosures across our country. The term “zombie foreclosure” describes a unique situation where a bank, upon foreclosing upon a homeowner, never proceeds to take ownership of a home. Normally, of course, after a bank forecloses they buy [...]

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Cities Offering Second-Rate Prepaid Cards

Adam Rust — Thu, 09 May 2013 18:24:53 +0000

At least two large cities have introduced their own prepaid cards recently, and each comes with prices far above almost any other card in the prepaid marketplace. Oakland’s new municipal identification card is also a Mastercard-branded prepaid card. Originally, Oakland’s card had lots of fees. They included: Two dollars to enroll the card to receive [...]

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