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Biden Plans to Bring Back Obama-Era Bank Regulations

Biden Plans to Bring Back Obama-Era Bank Regulations

Janet Yellen onboard to make any appropriate change

Anna Lad & Robert Baron
March 31, 2023

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Banking News

Citizens Financial Under Fire by Regulators

Scandal-plagued financier Greg Lindberg's primary annuities seller was Citizens Financial. Now the institution is being investigated by Massachusetts regulators, who are concerned that over $2.2B of funds are unavailable to customers. Lindberg stole funds to buy luxury goods, homes, and services.

Biden Will Reinstate Obama-era Bank Regulations

As the financial sector reels after the collapse of Silicon Valley Bank and Signature Bank, the White House issued a statement endorsing more "common-sense requirements and supervision" for banks at risk of contagion. Specific measures include liquidity stress testing, rules, and "living wills."

Janet Yellen, the US Treasury Secretary, said:

Regulatory requirements have been loosened in recent years. I believe it is appropriate to assess the impact of these deregulatory decisions and take any necessary actions in response.

Janet Yellen

Credit Union News

SavvyMoney Metrics Solution Aids CUs

California-based SavvyMoney offers customers tips to improve their credit scores, credit monitoring, and customized loans. The company works with over 1,000 banks and CUs, which have seen major increases in customer satisfaction and loan origination.

One credit union, Oklahoma-based Tulsa Teacher Credit Union, experienced loan growth amounting to $13.6M in 2022. Jeff Baenziger, TTCU's digital strategy vice president, said:

[It] places the credit union in a better position to provide the personalized financial guidance our members are looking for as we seek to be their trusted source for financial solutions.

Jeff Baenziger

Impending Consumer Hurt from CCCA

Opponents of the Credit Card Competition Act (CCCA) say that it would negatively impact consumers with cards from card issuers with assets of over $100B. Transactions from those cards wouldn't process on Visa or Mastercard networks.

It may force consumers into contracts with less affordable cards or expose their personal data.

Financial Services & Blockchain

Kids Get the Green Light

Financial services optimized for children and families are few and far between. Atlanta-based fintech Greenlight has filled the gap by offering financial literacy products, debit cards, and kid-focused accounts within an institution's branding package.

It is a promising way to establish banking relationships with the next generation. Greenlight’s senior VP of business development, Matt Wolf, said:

Many [institutions] don't have the expertise or resources to create a compelling digital banking experience for the next generation. We've designed something that really helps financial institutions seamlessly integrate family banking into their own ecosystems.

Matt Wolf

Digital Wallet in the Works at Synchrony

Plastic cards are still the main convention, but the time is coming when people will migrate to digital wallets.

Major retail card manager Synchrony Financial is considering creating a proprietary financial wallet for the merchants it makes cards for: Walmart, Amazon, JCPenney, and others. That move could disrupt current Google, Apple, & Samsung wallets.