American Banker

Ellen Seidman in U.S. Banker | Is the OTS Obsolete?

Communications — Sat, 01 Mar 2008 14:55:00 -0500

New America in the News:

Is the OTS Obsolete? (U.S. Banker, subscription only)

. . . "The system has worked well enough," says Ellen Seidman, who ran the Office of Thrift Supervision under President Clinton and now directs the New America Foundation's Financial Services and Education Project in Washington, D.C. "It's a case of 'If it isn't broke, don't fix it.' Though it's entirely reasonable that people are raising these questions now, it's not great for morale."

Abolishing the OTS would only raise a number of other problems, including whether the two main regulatory duties--overseeing thrifts and overseeing holding-banking companies--would be given, respectively, to the Office of the Comptroller of the Currency and the Federal Reserve, says Seidman. The OTS's input has been particularly necessary in ongoing discussions about interest-rate risk in 15- and 30-year mortgages, she says. . .

Ellen Seidman in American Banker | Obama's Bank-Issue 'Blank Slate'

Communications — Wed, 09 Jan 2008 17:20:00 -0500

New America in the News:

Assessing Obama's Bank-Issue 'Blank Slate' (American Banker)
"When you start campaigning in places like Florida and California, where these issues are front and center, you will hear more about it," said Ellen Seidman, who ran the Office of Thrift Supervision under President Clinton and now directs the New America Foundation's Financial Services and Education Project. ...

Viewpoint: Fed's Mortgage Move is a Good Start

Ron Tang — Fri, 21 Dec 2007 00:00:00 -0500

With foreclosures reaching record levels and predictions for further trouble ahead, the Federal Reserve Board on Tuesday unanimously approved potentially sweeping changes to how mortgages are marketed, made, and serviced, especially in the nonprime market. Will the Fed be able to meet its goal of a "comprehensive set of protections to consumers" when the comments come flying?

The proposed revisions to regulations under the Truth in Lending Act are designed to realign relationships in the mortgage business, so borrower and lender are once again interested in the same result: a good mortgage.

The rules, unlike guidelines bank regulators issued over the last… more

Technology is Helping Firms Reach Unbanked

Articles — Fri, 16 Nov 2007 11:24:00 -0500

Over a dozen financial institutions have applied to be the issuer of the Treasury Department's Direct Express electronic bank accounts for depositing Social Security and other federal benefits.

The Treasury touts the product as a safer, easier, and more convenient way to receive and access monthly benefits. In part, this is a strategy by the federal government to lower expenses for taxpayers by saving on the issuance of benefit checks. Compared with the 89 cents for sending a check each month, electronic deposits cost a mere 9 cents a transaction — a savings of up to $125 million a… more

Ellen Seidman in American Banker on Helping Homeowners

Communications — Thu, 11 Oct 2007 04:23:00 -0400

New America in the News:

Amid widespread complaints that mortgage loan modification is not moving fast enough, Treasury Secretary Henry Paulson on Wednesday opposed pressure for across-the-board modifications, said bankruptcy reform could prove counterproductive, and painted a relatively upbeat picture of the ability of struggling homeowners to handle interest rate resets.

At a press conference announcing a group of lenders, servicers, and others who have agreed to step up counseling efforts, Mr. Paulson said the group would not consider categorical modifications, signaling that they should be handled on a loan-by-loan basis. ...

Ellen Seidman, director of the Financial Services and Education Project at the New America Foundation and a former director of the Office of Thrift Supervision, said Treasury's announcement fails to make an impact. Doing modifications "on a loan-by-loan basis is not going to work fast enough," she said. "We've got to do something other than - as someone put it - social work."

For more on this story, please visit American Banker online.

American Banker Quotes Olivia Calderon on Bank Development Districts

Communications — Thu, 24 May 2007 08:15:00 -0400

New America in the News:

Two states are considering duplicating a program in New York that rewards banks with government deposits for opening branches in neighborhoods with little or no banking services.

Lawmakers in California and Texas have introduced bills that would create "bank development districts," specially designated low-income areas that are underserved by banks...

The bills are modeled after a nine-year-old New York law that offers banks select state and municipal deposits for two years, partial property tax breaks for 10 years, and other perks for opening branches in specially designated districts...

California could use a similar program - more than a fourth of adults there are unbanked, said Olivia Calderon, a policy representative in the Sacramento office of the New America Foundation. The nonprofit public policy institute helped draft Assembly Bill 1502, from Rep. Ted W. Lieu, D-El Segundo.

"Too many people are living outside the financial mainstream, vulnerable to burglaries or alternative outlets that charge them ridiculous rates to do something as simple as cash their paycheck," Ms. Calderon said. "If banks build branches in their communities and then reach out to them, people will come..."

For the complete article, please visit the American Banker website.

American Banker Reports on Kids Savings Accounts

Communications — Mon, 16 Apr 2007 14:51:00 -0400

New America in the News:

Newborns typically are mailed birth certificates and Social Security cards within weeks of leaving the hospital. In at least two states they could soon be receiving other important documents: savings account statements.

A bill being considered in the California Legislature would create savings accounts for every child born in the state after Jan. 1, 2008. Each account would be seeded with $500 in state funds, and the money could be used only for specific purposes, such as college or technical education or buying a first home...

All states and the District of Columbia offer 529 college savings programs, and at least eight states offer financial incentives, such as matching deposits, to encourage families to save...

But the program being considered in California would be the first in which a state would set up accounts for all newborns - regardless of family income - and make the initial deposit.

The April 25 hearing is to be held in the Senate Revenue and Taxation committee. Jim Evans, spokesman for Sen. Darrell Steinberg, D-Sacramento, said the senator authored bill on behalf of the New America Foundation, a Washington nonprofit that promotes asset-building programs for the poor.

"There's a crisis - not enough people are savings and building assets in today's society," Mr. Evans said. "We think if you seed accounts with $500 in state money, that will encourage families to put additional funds into these accounts to buttress the original investment..."

For the complete article, please visit the American Banker website.

American Banker Profiles New America's Ten Big Ideas Event

Communications — Mon, 05 Feb 2007 22:48:00 -0500

New America in the News:

Senators from both sides of the aisle addressed a public policy institute last week on issues that could shape banking policy. Democratic Sen. Hillary Clinton and Republican Sen. Lindsey Graham spoke to members of the New America Foundation about the need for bipartisan compromise on issues like a federal savings account and a government-run investment plan.

An "American Stakeholder Account," one of the foundation's Ten Big Ideas for a New America, would start with $6,000 for every child at birth. With dollar-for-dollar matching contributions of up to $500 per year, the accounts would foster a savings culture.

"It's a message to every family that as they invest in their kids, America will invest in them as well," said Sen. Clinton of New York, who is running for the 2008 Democratic presidential nomination. "We can give every child a vested interest in our financial system, reverse our terribly low national savings rate, and give every child an opportunity to begin adulthood with money in the bank."

The group also advocated a "Universal 401(k)" plan that would be federally managed, with the government matching voluntary contributions. Instead of asking workers to opt in, participation would be the default option.

"I do believe as a people we can come up with an investment program ...that will be secure, sound, and will allow additional retirement benefits,"Mr. Graham of South Carolina said.

A third idea put forth by the foundation aims to reduce college debt and federal expenditures. A "College Access Contract" would demand more of college students in the form of community service and accomplishments after graduation and force banks to compete for government-guaranteed loans...

For the complete article, please visit the American Banker website. (subscription required)

Pay Attention to Activists or Pay in Money and Grief

Articles — Fri, 15 Jun 2001 00:00:00 -0400

Financial institutions have escaped the wrath of nonprofit environmental organizations for many years, but they'd better be careful.

Unlike their colleagues in the oil business, financiers have rarely faced the threat… more