22 Burst results for "OCC"

Circle Wants to Become Chartered Crypto Bank

Techmeme Ride Home

01:11 min | 9 months ago

Circle Wants to Become Chartered Crypto Bank

"Circle has announced it intends to become a bank fully regulated by the federal reserve. Occ and fdic. Which could make its us. Dc stable coin a defacto central bank digital currency. It's a bit arcane. But this could really be a huge deal. Quoting axios circles. Dream is to become a narrow bank one that shoes fractional reserve banking entirely and instead places all deposits on reserve at the central bank. Only banks can open accounts directly at a central bank which credits them with pure money in circles case the depositors would be holders of us dc and the collateral backing up us dc would be the money on deposit at the fed. Circle would pocket for itself the interest that the fed pays on bank reserves if the dream were to become reality than circle with effectively be issuing a cryptocurrency backed by the fed itself for all intents and purposes a central bank digital currency or cb dc. If circle was allowed to do such a thing then presumably other banks would be too and they would rapidly start competing with each other to pass through most or all of the interests that the fed pays on reserves.

FED OCC Fdic
"occ" Discussed on Consumer Finance Monitor

Consumer Finance Monitor

03:14 min | 1 year ago

"occ" Discussed on Consumer Finance Monitor

"That will be the source of credit creation An important thing to remember is it was sort of done under the cover of patriotic duty. Were creating these big big big financial institutions to finance the war. The goal of the law was really to stand out all. Those state chartered banks. Although they later up to new business model. That would be familiar to us today where they would mobilize the savings of people and then turn that took commercial industrial. I should add that. There's also a fascinating back story about the brother of a prominent philadelphia banker. No less I believe ballard spars headquartered in philadelphia not mistaken so may know the name. Jay cooke In jay cooke was the preeminent financier of the civil war In his brother was good buddies with salmon chase the treasury secretary and and he used that position to advocate for the national bank act so there was a certain level of corruption in its nation. That would be familiar to anyone who's worked today's washington. Yeah first of all I have a follow up question for you but scott Do you have anything to add to The historical explanation that car was given. Now i think the historical Ah the history of that carter's provided accurate and Young the question. That i'm more focused on is where we go today. Which i think we'll get to a little later. Yeah well we'll get to it right now. So tired of. Why does the occ history which you just chronicled for us of why. Why does that matter in in understanding the role of the comptroller of the currency today. Sure if if the origin of the occ is fascinating than what happened next is a bit more of a a signal lesson in in politics which is in one thousand. Nine hundred in. The united states created the federal reserve. Not the fed that we recognize today. That was more of a product of the new deal but in nineteen thirteen. We created the reserve bank's that still exists today and we suddenly had reserve notes With an implicit backing of us government As the currency so there was really no need after nineteen thirteen. Four national banks or for the sec. But the seat became a sort of advocate for these banks within the system and based on my reading of the historical record. No one seems to even considered that. This system had outlived its usefulness. I can't find any serious discussion of maybe repealing. The national bank act and abolishing the occ back then and. I don't think that's a coincidence. There were these powerful banks and they They had enough have that that. The creators of the federal reserve had a hard enough time. Just getting them to join the federal reserve system so that was a sign a little over one hundred years ago that this was..

Jay cooke jay cooke Nine hundred today one thousand washington national bank act one hundred years ago Four national banks philadelphia after nineteen thirteen first nineteen thirteen scott civil war united states
"occ" Discussed on Consumer Finance Monitor

Consumer Finance Monitor

03:36 min | 1 year ago

"occ" Discussed on Consumer Finance Monitor

"Conversions forming do bags and he's represented and dealt with Many many national banks and many banks that are state chartered banks and are not regulated by the contract with currency so scott. Welcome to our show. Thank you very much out. So let's get into it now and i'll start with some I guess you would describe as softball questions carter before we get the The meat meat and potatoes of what you are. advocating year. How did we end up with a federal banking regulator called the comptroller of the currency. Thanks for the question alan That was one of the most fascinating parts of Writing the piece that you described for the washington monthly Because it was one of those situations where you go back and look the history and your somehow surprised but not surprised The short answer is that we kind of ended up with the office of the comptroller of the currency accident The national bank acts that were passed in eighteen. Sixty three eight hundred sixty. Four were really primarily intended as a desperate measures to raise money to finance the union. Armies were In the we now know to be middle stages of crushing the slave holder rebellion but Was not at all clear that the union would be victorious at that time and the treasury secretary was telling lincoln. There is no more money left. We're gonna run out so something needed to be done. And so abraham lincoln the great emancipator Became personally involved in lobbying very strongly for the passage of the national bank axe and the first thing that the main thing that they did was taxed state banknotes out of existence which were the common currency of pre civil war america. Those were simply notes that drew on banks core capital and congress and then they were chartered by states and congress said no. We're going to create a national bank charter and we're going to require that. These new national banks hold all of their reserves in us government bonds so and bear in mind since they were taxing their competitors out of existence. They knew there would be a massive creation of a lot of national banks and so at a stroke they created a massive new financing source for the federal government that helped helped finance the civil war and it was also a measure of prudential regulation because by adjusting. How much national banks could level lever their reserves. You could affect the the the currency's supply rough very rough system at alan that this was in some senses. The end of a long debate that the united states had had about concentrated financial power Most of us when we learn american history up learning about the bank of the united states. And how this was created alexander. Hamilton musical is brought into popular culture. And then you know. Andrew jackson smashed the thing in the in the pieces And this was. The was the end of that debate in which congress said okay. We're going to create these strong. Nationally chartered financial institutions..

Andrew jackson lincoln congress Four abraham lincoln Sixty one Hamilton civil war washington american united three eight hundred sixty first thing one of those situations bank acts eighteen alan scott
Stablecoins in the Hot Seat: Powell Calls Bitcoin a Substitute for Gold

The Breakdown with NLW

05:54 min | 1 year ago

Stablecoins in the Hot Seat: Powell Calls Bitcoin a Substitute for Gold

"There was an absolute flurry of content and commentary yesterday around the place of bitcoin. Stable coins defy and the digital asset industry as a whole vis-a-vis. Us government regulation as well as how a digital dollar might shake that all up before we get into it. Let's at the terms of the debate. One of the competitors for this cycles top fudd is the government will ban it if it gets sufficiently threatening now to be clear banning depending on your sister could mean anything from an outright ban of use in holding too forceful seizure too limiting access to on and off ramps to the more benign from a commercial standpoint but no less threatening from a privacy standpoint integration of the full crypto infrastructure into the am l. kyc. Money surveillance apparatus. I've spent some time on this show looking into global versions where this fudd seems to be playing out in particular. We've been watching the evolving situation in india and nigeria india which seems gearing up for a bill that would have some sort of outright ban although at least one finance minister says that that's not the case and nigeria. Where the central bank of nigeria. I reiterated that banks should not be working with crypto users which they've then subsequently rolled back just a little bit either way however really what everyone has been focused on is the us particularly in the context of a new administration. The last administration had friends and foes alike when it came to bitcoin and crypto trump. Famously tweeted that he did not like bitcoin or crypto. But we didn't really take that seriously as a threat because it was so clearly about zuckerberg and libra mnuchin was a much bigger enemy. Probably wrote that text for trump's tweet even and clearly wanted to tighten the reins in his final act. He was trying to require exchanges to collect more information. When users transferred crypto to their own wallets on the flip side however there was brian brooks who was absolutely revolutionary at the office of the comptroller of the currency. The changes he oversaw are a huge reason. Why so many big institutions are now playing in this space. Why so many big traditional banks feel like they have to race to catch up to allow people to offer their customers crypto services however as we know from physics every action has a reaction and to some extent one reason why observers are so keenly watching the biden administration is to see how much they're going to respond or try to walk back with brooks in the occ changed on top of that. As the biden administration has come to power the price and volume around bitcoin stable coins and the rest of the digital asset industries have made them much more on ignore -able last time joe biden was in office. Bitcoin is about four hundred and thirty bucks. Now it's been over fifty thousand dollars for sixteen days in a row tether was barely out of diapers now. It has a market supply above forty billion in his doing upwards of one hundred billion dollars in volume per day combined with us dc. And you've got over. Fifty billion dollars of usd approximates there so lot more is at stake with that. People have been watching. Two things has come in and what they're saying on the who has come inside. Janet yellen is back for another round although this time is treasury secretary rather than as he chair gary genzer to is back. Although this time is as he c- chair. Instead of cftc chair of these two there is much more optimism around gessler who has done a pretty fair bit of work to understand where the crypto industry is coming from even teaching a course at mit about bitcoin and blockchain. And of course we have someone who still around in the form. Of jay powell. The federal reserve chairman. His ex factor. And all these discussions is the potential of a central bank digital currency a digital dollar. That could potentially shift the us's relationship with these projects now in terms of what we've seen these actors say so far over the last few months up until now it's been pretty standard fare one part. There's a lot of exciting potential here. One part we have to protect investors though and one part but it's also used by criminals over the last couple of days however we've gotten both comments and news that could shift as into our next phase of understanding what the us is relationship with. Bitcoin stable coins and other digital assets is going to look going forward. So let's talk about powell speaking about cdc's and cryptos at a bank for international settlements panel yesterday. Let's talk about the announcement of digital dollar prototypes coming this summer. And let's talk about new draft fat. If guidelines around cryptocurrencies. I up powell. Did a session yesterday with leaders from the bank for international settlements including augustine carstens. We talked about last week. He was asked about crypto currencies. And whether he saw them as a threat. And here's what he said. We call them crypto assets. You know. they're they're highly volatile. See bitcoin and therefore not real useful as a store of value in there not backed by anything. They're more of an asset for speculation. So they're also not particularly in use as a means of payment. It's more speculative asset. That's it's essentially a substitute for gold rather than for the dollar. And i think with crypto acids the the the public needs to understand the risks. The principle thing is there's the volatility there's also the outsized energy requirements requirement for for mining. And the fact that they're not backed by anything so let's break out these three reasons that he wasn't particularly impressed by cryptos. I this idea of volatility or that. It's just an asset for speculation. Basically he's dismissing bitcoin and any other crypto as something that he does not have to stress about or really factor into his consideration around global monetary competition while many. Bitcoin is grabbed onto the essentially a substitute for gold piece as a great tweet and knocked to the gold bugs. Who they're trying to convert or at least undermined powell was saying this more. Like a giant shooing away. A fly gold is to him clearly. Irrelevant an unimportant antiquated part of the fiat system that he sits at the helm of in that way a substitute for that thing does not present a threat

Biden Administration Libra Mnuchin Nigeria Brian Brooks Central Bank Of Nigeria India Janet Yellen Gary Genzer Gessler United States Jay Powell Zuckerberg Bitcoin Famously Donald Trump OCC Joe Biden
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

01:56 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"It does test you. <Speech_Male> And as you said <Speech_Male> the ability <Speech_Male> for Innovation to happen <Speech_Male> is <Speech_Male> never greater than during <Speech_Male> times of Crisis if <Speech_Male> we can keep the foot <Speech_Male> on the pedal and we can keep <Speech_Male> on moving forward. <Speech_Male> It's a real <Speech_Male> dramatic time <Speech_Male> that we can <Speech_Male> have a much more <Speech_Male> core laid <Speech_Male> view of <Speech_Male> what bank is going to be <Speech_Male> and <Speech_Male> as you said the regulation <Speech_Male> of syntax <Speech_Male> and combining <Speech_Male> them with the bigger Banks <Speech_Male> and if we can get <Speech_Male> your continually <Speech_Male> fighting the Legacy <Speech_Male> thinking of <Speech_Male> let's keep The <Speech_Male> Outsiders out. <Speech_Male> That's not the <Speech_Male> best solution and I <Speech_Male> think your last comment <Speech_Male> about the risk. <Speech_Male> It's really an opportunity cuz <Speech_Music_Male> the opposite of <Speech_Music_Male> that coin is just <Speech_Music_Male> simply saying <Speech_Male> or we make them more together <Speech_Music_Male> and move forward together. <Speech_Music_Male> So <Speech_Male> I want to thank you very much <Speech_Male> for being the show today. <Speech_Male> I've been looking forward to <Speech_Music_Male> seeing you for awhile. And <Speech_Music_Male> it's it's interesting <Speech_Male> having to continually update <Speech_Music_Male> my <Speech_Music_Male> interview platform. <Speech_Music_Male> Days go on because <Speech_Male> you continually put your <Speech_Male> head out there and you haven't had <Speech_Male> a cut off yet. So <Speech_Male> I wish you the best of <Speech_Male> luck cuz you <SpeakerChange> seem to be having <Speech_Male> a lot of fun. <Speech_Male> I never had a better job <Speech_Male> in this best job I've <Speech_Male> ever had most important <Speech_Male> job <SpeakerChange> and I <Speech_Music_Male> really appreciate the place. <Speech_Music_Male> You can look at things <Speech_Male> one or two ways. <Speech_Music_Male> But if you're not passed by what <Speech_Music_Male> you're doing <Speech_Music_Male> don't do it, you are <Speech_Male> definitely passionate about what <Speech_Music_Male> you're doing. So thank you for <Speech_Music_Male> <Advertisement> being on the show, <Speech_Music_Male> <Advertisement> baby, sir. <Speech_Music_Male> <Speech_Music_Male> What is <Speech_Male> interesting interview <Speech_Male> with Brian brush <Speech_Male> from the OCC? You <Speech_Male> <Advertisement> know, it's interesting <Speech_Music_Male> <Advertisement> to talk to a regulator <Speech_Music_Male> <Advertisement> <Speech_Music_Male> <Advertisement> or persons Regulatory <Speech_Music_Male> <Advertisement> Field <Speech_Music_Male> that has <Speech_Male> so much passion <Speech_Music_Male> for what's possible. <Speech_Music_Male> You know, my <Speech_Male> pressure regulator <Speech_Music_Male> is always been the there <Speech_Music_Male> stayed they hold back <Speech_Music_Male> the opportunity <Speech_Music_Male> to grow and to <Speech_Music_Male> innovate <Speech_Music_Male> but Brian definitely has <Speech_Male> a different perspective <Speech_Male> and it's something that <Speech_Music_Male> we should all take <Speech_Male> notice of because <Speech_Male> he's not done. <Speech_Male> He obviously has <Speech_Male> a mission in a passion <Speech_Male> for doing what he's doing <Speech_Male> and I think <Speech_Male> Legacy financial <Speech_Music_Male> institutions have to <Speech_Male> take notice <Speech_Male> that they're going to be able <Speech_Male> get a lot of <Speech_Male> Runway to do what <Speech_Male> they want to do <Speech_Male> <Advertisement> and if you stop <Speech_Male> <Advertisement> and you don't <Speech_Music_Male> <Advertisement> do it you're going <Music> to lose. <Speech_Music_Male> <Advertisement> <Speech_Music_Male> <Advertisement> Thanks <Speech_Male> for listening to banking <Speech_Male> transform just straight <Speech_Music_Male> as a top-five <Speech_Music_Male> banking podcast. <Speech_Music_Male> <Speech_Male> If

Outsiders Brian brush OCC
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

02:19 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"So when we see economic <Speech_Male> activity declining <Speech_Male> wage, but people are willing <Speech_Male> to pay money finance <Speech_Male> things because they don't see <Speech_Male> an upside. Those are <Speech_Male> bad signs <Speech_Male> not just <Speech_Male> for the economy but <Speech_Male> for life in <Speech_Male> this country, <Speech_Male> so I really worry about <Silence> that. And then <Speech_Male> the other thing I worry about Iraq <Speech_Male> Picayune way <Speech_Male> is that we <Speech_Male> will continue to see <Speech_Male> kind of leakage out <Speech_Male> of the banking system <Speech_Male> and these institutions <Speech_Male> that <Speech_Male> are the best <Speech_Male> suited to <Speech_Male> manage risk <Speech_Male> and intermediate, <Speech_Male> you know <Speech_Male> factions <Speech_Male> will no longer <Speech_Male> play the central role they <Speech_Male> have played and <Speech_Male> instead if <Speech_Male> it'll just leaked all <Speech_Male> over the place with no <Speech_Male> coherent supervision <Speech_Male> as I <Speech_Male> say that's a more garden-variety <Speech_Male> Picayune <Speech_Male> kind of risks, <Speech_Male> but it's really <Speech_Male> important and so, <Speech_Male> you know the other most <Speech_Male> important thing I think I'll <Speech_Male> do with this job is <Speech_Male> to win the litigation <Speech_Male> over fintech <Speech_Male> Charters cuz if <Speech_Male> I don't win it, <Speech_Male> it's bad for the country. <Speech_Male> So those <Speech_Male> are the things probably more than <Speech_Male> <SpeakerChange> wage. Keep me up at <Speech_Male> night. I hate to stop <Speech_Male> a show at point <Speech_Male> of like the negative <Speech_Male> but the reality <Speech_Male> is what you've just mentioned <Speech_Male> are two very <Speech_Male> opportunistic <Speech_Male> situations <Speech_Male> covet you <Speech_Male> can see as a dramatic <Speech_Male> negative <Speech_Male> or on the other hand. <Speech_Male> It does test <Speech_Male> you. And as you said <Speech_Male> the ability <Speech_Male> for Innovation to <Speech_Male> happen is <Speech_Male> never greater than during <Speech_Male> times of Crisis <Speech_Male> if we can keep the foot <Speech_Male> on the pedal and we can keep <Speech_Male> on moving forward. <Speech_Male> It's a real <Speech_Male> dramatic time <Speech_Male> that we <Speech_Male> can have a much more <Speech_Male> core laid <Speech_Male> view <Speech_Male> of what bank is going to <Speech_Male> be and <Speech_Male> as you said the <Speech_Male> regulation of syntax <Speech_Male> and combining <Speech_Male> them with the bigger Banks <Speech_Male> and if we can <Speech_Male> get your continually <Speech_Male> fighting the <Speech_Male> Legacy thinking of <Speech_Male> let's keep The <Speech_Male> Outsiders out. <Speech_Male> That's not <Speech_Male> the best solution and <Speech_Male> I think your last <Speech_Male> comment about the risk. <Speech_Male> It's really an opportunity <Speech_Male> cuz <Speech_Music_Male> the opposite of <Speech_Music_Male> that coin is <Speech_Music_Male> just simply saying <Speech_Music_Male> or we make them more <Speech_Male> together and move forward <Speech_Music_Male> together. So <Speech_Music_Male> I want to thank you very <Speech_Male> much for being the show today. <Speech_Male> I've been looking forward to <Speech_Male> seeing you for awhile. <Speech_Music_Male> And it's interesting <Speech_Music_Male> having to continually update <Speech_Male> my <Speech_Music_Male> interview platform. <Speech_Music_Male> Days go on because <Speech_Music_Male> you continually put <Speech_Male> your head out there and you haven't <Speech_Male> had a cut off yet. So <Speech_Male> I wish you the best <Speech_Male> of luck cuz you seem to be <Speech_Male> <SpeakerChange> having a lot of fun. <Speech_Male> I never had a better job <Speech_Male> in this best job <Speech_Male> I've ever had most important <Speech_Male> job and <Speech_Male> <SpeakerChange> I really appreciate the place. <Speech_Music_Male> You can look at <Speech_Music_Male> things one or two ways. <Speech_Male> But if you're not passed by <Speech_Music_Male> what you're doing <Speech_Music_Male> don't do it, you <Speech_Music_Male> are definitely passionate about what <Speech_Male> you're doing. So thank <Speech_Music_Male> you for being on the show, <Speech_Music_Male> <Advertisement> baby, sir. <Speech_Music_Male> <Advertisement> <Speech_Music_Male> What is <Speech_Music_Male> interesting <Speech_Male> interview with Brian brush <Speech_Male> from the OCC? <Speech_Male> You know, it's interesting <Speech_Male> <Advertisement> to <Speech_Music_Male>

Outsiders Iraq OCC Brian brush
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

05:11 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"To preserve the status quo you proven that in your short tenure. Where do you see the banking industry going both from the traditional and non-traditional cents over the next I hate to go any further than 24 months gives changes happening almost daily and certainly from your office. Where do you see the big changes if you had a crystal ball not just from what do you think's going to happen? But let's take the second page that question being who would you like to see happen which may not be the same thing. So Jim, I heard a couple of weeks ago that somebody on that Capitol Hill had referred to me as to John Steve Fremont of financial regulation. So, you know, I'm going to try paging Pathfinder here for you and tell you maybe we're banking can plant its flag out west somewhere. So I think that actually can forecast a little bit what this will look like. My belief is that there are three kinds of Institutions that will be affected in three different ways. So first of all, I think the big jisan Banks, you know, the Big Money Center banks are not going to look back difference ten years from now than they look today. I mean, they'll offer services in a slightly different wage. Their mobile apps will be a little bit better. But at the end of the day if you have global scale in terms of velocity of money, you're always going to be a central player. Right Money Center banks will always have a role in the world. Then it'll look a lot of the rule today in terms of broader risk intermediation for the global economy at the same time. I think Community Banks will do better in the next ten years because hey, they will always be the trust providers in their local communities, you know, they will always be the people who are at the Kiwanis Club or financing the local Chamber of Commerce projects, you know, our financing local businesses because they're closely closely tied to their communities. Now I say the world would be better for them because I think we will install some problems that make it hard for them to adopt better technology to serve their customers little bit faster will solve some of their problems core processors with third-party risk management for like but they'll play their same key role, but I think they'll be more profitable than more successful the category banks that I worry about a little bit are the banks in middle of that the regional birth That are not quite big enough to really have scale but they're certainly not small enough to have the undying loyalty of their local neighborhoods where they are. These are the you know, the ten state banks that have a hundred and fifty billion dollars of assets, but not six hundred billion dollars of assets. You know what I mean? Those companies I think are going to ultimately start skinny down their Suite of services to focus on what they're best at and outsourced a lot of other things. So any given one of those Banks might be a major mortgage company or they might be in the factoring business or they might do rail car financed or whatever but they can't be all things to all people cuz unlike JPMorgan. They're just not big enough what you'd expect in those cases would be spin-offs of business lines, you know, as sales of business units and a focus on the core, that's my belief. And so I think those banks are going to have the hardest work to do to make sure that they're only doing value-added services and not doing commoditized Services. That's my prediction and research we're doing we're seeing the same thing you're saying which is off. A big Banks get it. There are a lot of smaller banks that number one don't necessarily need to get it from the let's say a digital perspective. But even many cases they are the most Innovative. They don't have that much Legacy to go through and if the leader believes in it, the culture goes with it. It's that middle range that it's caught between Legacy thinking I mean you've seen in the regulatory setting where it's a traditional move up ranks of the organization start off as a management trainee. They've been the bank for forty years thirty years. They're surrounded by people that think exactly like them. It's culture that changes everything that makes it very difficult as well as finances and Innovative spirit and all these things and we're seeing the exact same thing that middle group is a group that seems to be following the furthest behind what's possible. What do you most worried about in the next 24 months? I mean like there are two things that I really do worry about. So as I said in the beginning of the program, we turned off an economy, you know at a time when we did not have a full sense of the risk of a wage. Cure about we now have a much much greater sense of that. I mean we know from the most recent CDC data Than People ages zero two nineteen having 99.99 7% survived people from twenty to Forty Nine have a 99.98% survival rate yet. My home state of California is still locked down. What I'm worried about is we have changed the economic culture of the country and we're never going to turn it back on because we're scared in a country that used to be a bold Dynamic risk taking economy, which is what made us richer than Europe as our risk tolerance has gone away. I worry about I don't believe it's true, but I really really worried about it because we are no longer a calibrating cost and benefit. We are only focused on risk and we are not focused on trade-offs off. If we don't turn the economy back on you don't need Banks Banks are going to finance economic activity and if we have no economic activity, you know, it's back to the Dark Ages. So I really worry about that and I really worry about the idea that wage. Moving lines in the sense of you know, like biological lives without saving the richness of what life really has meant in this country in banks are in good early warning sign of that..

Banks Banks Community Banks Big Money Center Money Center John Steve Fremont Europe Jim management trainee Kiwanis Club California Cure Chamber of Commerce
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

08:19 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"We all regulate different kinds of Institutions. So the OCC I regulate essentially all of the biggest banks and a lot of small Banks to don't get me wrong. But the vast majority of banking assets are in the OCC System including almost all and you really other than one company all of the biggest banks in United States versus the FDIC in the FED. They regulate very different kinds of institutions. So it is possible that from Where I Stood we can be much more fashion-forward on Tech Innovation because we're dealing with among others the biggest and most sophisticated institutions are capable of financing Innovation and managing the risk that could be associated with early adoption of a new technology versus if I was only focused on regulating small community banks that just may not be high on my list of priorities. I'd probably be much more worried about their solvency or their their success or failure in a crisis. So having said that yes, it would be great. If the United States at the top of house could align Iraq Innovation agenda. The good news is right. Now my partners at the feminie ftse are heavily Innovation focus of them. I'm the only one who's actually worked in Ving texts, but they're very supportive of it. And so I don't perceive wage Gap we can't have this discussion without talking to some point about crypto. It's a Hot Topic but it's really an unknown topic by many both inside and outside the industry you've issue. Clarifying letter giving Banks Authority provide custodial services for crypto. Where do you see the role between Banks crypto and actually crypto and the global sense playing in the next five or six years Jim. Let me Begin by saying that even though you or even a couple of years ago see crypto something of a mystery. It's a mystery fewer people you think I mean many people are not aware that I'm almost fifty million Americans who own crypto. This is not a niche thing there as many Americans who I'm crypto as use Uber. It's a new thing but it's been broadly adopted pretty rapidly. So I think that's an important thing to know about another way of thinking about it is I just read an interesting data point yesterday that told me that on Election Day 2016. The price of Bitcoin was $916 per Bitcoin vs. Yesterday. The price of Bitcoin was Ten Thousand Seven $95 per Bitcoin pretty radical rate of return suggesting very very strong investor demand. So I begin with the idea that it's not as a niche as some people may believe having said that I think that yep. So is seen as mysterious because the understanding most people have of it is as an investment asset that is highly volatile. So a lot of people are saying why in the world would I buy Bitcoin when it's Daily Progress movements might be 25% and I don't have the stomach for that. And if you thought that's what crypto was. Hey, you'd wonder why it had any value at all and be you would wonder why you want an asset that had that fixed going on inside of it here in reality cryptos about something different crypto is about the power of networks versus the power of a vertically integrated intermediaries in the delivery of value exchange. So the thinking about Bitcoin is what about the token that the Bitcoin itself that has a transaction valued it's about the fact that the value of the Bitcoin is based on the value of the underlying network of computers that are simultaneously validated transactions in a transparent way. This is visible at public basically the Bitcoin blockchain and other blockchains are doing what banks there a ledger of transactions birth. Are validating who owes what to do or which asset has moved from person to person B cetera and that kind of network connectivity has a ton of value. The reason they're called Tokens The Reason Bitcoin in the theory of these things called tokens is because for people who are in this world, they regard that as the thing that you use to access the network much as you might use a subway token to access the Subway or how long it took him to access a washing machine. They're giving you access to a valuable tool one of the reasons that we've come out with these crypto letters and you mentioned our custody letter. We also have a second letter about stablecoins wage is that we believe that one way of thinking about these blockchain networks is their payment systems values being transmitted across a network from person to person be in a way that is actually faster and cheaper than a c h or Swift or any of a number other payment networks that exist in the world, but it's fundamentally performing the same function and the token is the native asset that represents the value moving across that Network dead. And so if banks are plugging into other Payment Systems our belief is that they need to start learning about this payment system and be ready for it when it's scales. So what role is regulation play in that whole world of crypto cuz it's still summer what the wild west outside and you have many players in this set are not within the United States. How do you balance that? How do you regulate how that's done or just simply a point of value and it really is not the same as boxing obviously, but where do you go from that? I think with a micro answer at macro answer to your question. The micro answer is you know, look this is an early stage asset and an early technology and usually in early technology the guys using it the most are the bad guys think about the early days of internet where the main use of the internet with pornography and Bank scams. Literally, there's still a lot of pornography and Bank scams on the internet, but now he's also have Amazon and Google and a lot of other valuable services in the world of crypto. There is the war and that the early adopters are mob guys and you know foreign Bad actors and they are a computer. Cyber thieves and things like that and that's why the biggest thing that the federal Regulators look at is BSA AML compliance, you know, we need to build a regime that ensures that these assets can be traced that we can conduct criminal investigations on blockchain the same way we can inside the banking system in cetera and those kinds of things. We need to provide Clarity on at the same time. We also have to look at this as a consumer protection issue. So one reason our first statement on crypto was about custody was because of the idea that there are millions of Americans who hold this stuff and the safest custodians for any given asset our National Banks and yet we had not met her eyes National Banks to perform that rule before we authorize them to hold gold bullion and Fine Wines antique art and things like that, but at some level, you know, this asset needs to be custody. That's an important consumer protection. We can offer most important message. I want to land though is it's a matter of international competitiveness. Other countries are focused on blockchain and stablecoin and Central Bank digital currencies as a way of competing with the dollar my view is if we do not start allowing dollars and other Finance just asked us to travel on blockchains to take advantage of the programmability features of some of these technologies that eventually the dollar will not be able to compete in the world with other countries currencies wage, which you know, we don't have a monopoly on Reserve balance as the way that we did fifty years ago. And so if we don't make our dollar more feature films more customer-friendly more useful than eventually the dollar will be less relevant off world and my job after all his controller of the currency. So part of my interest is making sure that our national fiat currency continues to have value. We're also talking about fintech organizations that are international nature choice of which have referenced the fact they like to make their foray into the United States hubs regulation play that or what is your perspective on outside organizations be they from the UK or dead. At some point maybe from China that want to come in and want to offer digital banking services under regulatory guidance. Well, the good news. First of all is that we have a legal regime that allows us to license supervise those kinds of things. So, you know, one of the things that we regulate your we regulate National Banks, we regulate savings associations, but we also regulate foreign branches. So there are a number of companies the Bank of China would be an example of one thousand China that we do license and we supervise. So those things are important. It becomes a little bit more complicated when you migrate to a fully internet-delivered Suite of financial services that may not physically exist. Anyway may have no Branch they may have no assets and yet they're targeting American customers on the internet for various services and overtime. I think we'll have a regulatory framework for that. But in the meantime The Authority that we have among others is the ability to regulate foreign branches which we entertain applications for, you know, every year and and Grant licenses you were quoted as saying that your job is not to protect incumbents and it's nice..

Bitcoin United States National Banks Banks Authority OCC China Hot Topic Bank of China FDIC feminie ftse FED Ving Jim Amazon UK Google
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

06:44 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"Valuable services that our customers personally, you know, I believe that there ought to get closers. I think the gramm-leach-bliley framework of privacy was fairly good. I started to get worried in a world where you say that individual customers have to affirmatively consent before you can use information because here's the thing. I'm too busy to affirmatively consent every time at the bank wants to do something and yet I want the bank to call me up and say hey Brian, we noticed you're paying too much interest on your mortgage and you qualify for a reason why I want that to happen and I'm way too busy to come to the bank and tell them hey, you can use my information to evaluate me for a refire. I'd rather only get offers that apply to me and knock it off. Don't apply to me that requires Banks having some right to use that information which after all they're a party to as well. So I think they're important to social questions with all of this. But at the end of the day your question on who pulls the data is of much broader Dimension than just the consumer question. I mean, it's very foundational to the industry. I don't think anyone entities can own the the data but it's one of these things you go. Okay, who am I going to rely on to protect it and not the banks most likely are going to play a primary role in that, you know over the past decades the different organizations that regulate the banking industry really have not necessarily been on the same path. They don't make necessarily the same decisions. They even look at Innovation differently at this point would it make sense for the different agencies to begin pursuing some interagency Innovation activities often start to do things more similarly rather than you know, everybody looking for the path of least resistance and more similar to what's going on the UK, I think would be set for the UK model and a dog Before that you can imagine a way of rationalizing our three banking agencies so that instead of all three of us, you know, examining different categories of Banks and conducting basically similar activities. You can imagine a world we had one supervision agency and that would be the OCC. We have one Deposit Insurance in resolution agency. That would be the FDIC and we have one agency to conduct monetary policy. That'd be the Federal Reserve that would make a lot of sense. I said that that's not the system we have and I would argue that the system is a little bit less confused than most people would think just based on what they read the newspaper what I mean by that is we don't have them overlapping jurisdiction. We all regulate different kinds of Institutions. So the OCC I regulate essentially all of the biggest banks and a lot of small Banks to don't get me wrong. But the vast majority of banking assets are in the OCC System including almost all and you really other than one company all of the biggest banks in the United States versus the FDIC in the FED. They regulate very different kinds of institutions. So it is possible that from Where I Stood we can be much more fashion-forward on Tech Innovation because we're dealing with among others the biggest and most sophisticated institutions are capable of financing Innovation and managing the risk that could be associated with early adoption of a new technology versus if I was only focused on regulating small community banks that just may not be high on my list of priorities. I'd probably be much more worried about their solvency or their or their success or failure in a crisis. So having said that yes, it would be great. If the United States at the top of the house could align Iraq Innovation agenda. The good news is right. Now my partners at the feminie ftse are heavily Innovation focus of them. I'm the only one who's actually worked in Ving texts, but they're very supportive of it. And so I don't perceive wage Gap we can't have this discussion without talking to some point about crypto. It's a Hot Topic but it's really an unknown topic by many both inside and outside the industry you've issue. Clarifying letter giving Banks Authority provide custodial services for crypto. Where do you see the role between Banks crypto and actually crypto and the global sense playing in the next five or six years Jim. Let me Begin by saying that even though you or even a couple of years ago see crypto something of a mystery. It's a mystery a fewer people you think I mean many people are not aware that I'm almost fifty million Americans who own crypto. This is not a niche thing there as many Americans who I'm crypto as use Uber. It's a new thing but it's been broadly adopted pretty rapidly. So I think that's an important thing to know about another way of thinking about it is I just read an interesting data point yesterday that told me that on Election Day 2016. The price of Bitcoin was $916 per Bitcoin vs. Yesterday. The price of Bitcoin was Ten Thousand Seven $95 per Bitcoin pretty radical rate of return suggesting very very strong investor demand. So I begin with the idea that it's not as a niche as some people may may believe having said that I think that yep. So is seen as mysterious because the understanding most people have of it is as an investment asset that is highly volatile. So a lot of people are saying why in the world would I buy Bitcoin when it's Daily Progress movements might be 25% and I don't have the stomach for that. And if you thought that's what crypto was. Hey, you'd wonder why it had any value at all and be you would wonder why you want an asset that had that fixed going on inside of it here in reality cryptos about something different crypto is about the power of networks versus the power of a vertically integrated intermediaries in the delivery of value exchange. So the thinking about Bitcoin is what about the token that the Bitcoin itself that has a transaction valued it's about the fact that the value of the Bitcoin is based on the value of the underlying network of computers that are simultaneously validated transactions in a transparent way. This is visible at public basically the Bitcoin blockchain and other blockchains are doing what banks there a ledger of transactions birth. Are validating who owes what to do or which asset has moved from person to person B cetera and that kind of network connectivity has a ton of value. The reason they're called Tokens The Reason Bitcoin in the theory of these things called tokens is because for people who are in this world, they regard that as the thing that you use to access the network much as you might use a subway token to access the Subway or how long it took him to access a washing machine. They're giving you access to a valuable tool one of the reasons that we've come out with these crypto letters and and you mentioned our custody letter. We also have a second letter about stablecoins wage is that we believe that one way of thinking about these blockchain networks is their payment systems values being transmitted across a network from person to person be in a way that is actually faster and cheaper than a c h or Swift or any of a number of other payment networks that exist in the world, but it's fundamentally performing the same function and the token is the native asset that represents the value moving across that Network dead. And so if banks are plugging into other Payment Systems our belief is that they need to.

Banks Bitcoin OCC FDIC Banks Authority United States Federal Reserve UK Hot Topic Brian feminie ftse Deposit Insurance Ving Jim
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

05:24 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"And how does your role play into how data is collected how it's used and the whole privacy aspect of what's going on because it's a balancing act it almost seems like a bow you transfer. I don't mind Amazon having a lot of information on me because they use it effectively responsibly. We haven't gotten hacked, you know knock on wood, but the reality is I get value from that transfer. What role do The Regulators were should they play in how data is collected how it's used and the whole private aspect if it's done in the framework that you'd like to be done coming back to what we were saying about Charters may go with the idea that one of the reasons that the spintex exist is because a combination of the internet and apis allow almost anyone to get access to make data off. Mean that banks no longer really have a monopoly on the data generated by their customers transactions. So one of the reasons Banks exists in their current configuration is for a long time bank knew how much money you made because a got direct deposit from your paycheck. Every two weeks it knew what your assets were because it had a savings account and checking account a money market fund possibly. Even an affiliate brokerage that would you know have all of your assets in it and a new your transaction behavior and all kinds of other things post gramm-leach-bliley. It might even know your risk because it might have maybe have an Insurance affiliate there was looking at the various risks that you presented and how you how you covered those wrists off and the internet now mean that anybody can get information for free. So Banks don't have that Monopoly anymore. And so the data question becomes really relevant in terms of the decline of banks as a share of overall Financial Services because anyone can do it you and I can start a financial service company today just with the information we can get on the internet we can be pretty effective. So then the question is if the banks don't have a monopoly on data, then who's data isn't This raises a really interesting question in terms of Banks and their technology Partners. So one thing that we learn is, you know, a lot of banks that are below the top 10, let's call it maybe the top 15 bags really reliant on these third-party providers that people refer to as core processors or processes play a critical role in our ecosystem there among the most important companies in banking they basically provide the tech platform and back end for any Community Bank in America and most of the regional Banks under their contracts though. A lot of these contracts say that the transactional data generated, you know on their platforms took longest to them and not the bank. So then how hey how's the bank supposed to use that information to deliver a service of their customers and B. How does the bank supposed to protect it? What is a matter of contract? It's not very often. It's the core processors. So that presents a series of issues and then you get to the question of you know, gdpr and some of these complex regimes that say customers are on their data they birth To affirmatively authorize you to use it or you can't use it. You have to let them delete all data from your system. They have a right to be forgotten etcetera, etcetera that stuff even though GT40 around for a significant amount of time is still kind of at the frontier of how data interacts with the ability of banks to deliver valuable services that our customers personally, you know, I believe that there ought to get closers. I think the gramm-leach-bliley framework of privacy was fairly good. I started to get worried in a world where you say that individual customers have to affirmatively consent before you can use information because here's the thing. I'm too busy to affirmatively consent every time at the bank wants to do something and yet I want the bank to call me up and say hey Brian, we noticed you're paying too much interest on your mortgage and you qualify for a reason why I want that to happen and I'm way too busy to come the bank and tell them hey, you can use my information to evaluate me for a refire. I'd rather only get offers that apply to me and knock it off. Don't apply to me that requires Banks having some right to use that information which after all they're a party to as well. So I think they're important to social questions with all of this. But at the end of day your question on who pulls the data is of much broader Dimension than just the consumer question. I mean, it's very foundational to the industry. I don't think anyone entities can own the data but it's one of these things you go. Okay, who am I going to rely on protect it and not the banks most likely are going to play a primary role in that, you know over the past decades the different organizations that regulate the banking industry really have not necessarily been on the same path. They don't make necessarily the same decisions. They even look at Innovation differently at this point would it make sense for the different agencies to begin pursuing some interagency Innovation activities often start to do things more similarly rather than you know, everybody looking for the path of least resistance and more similar to what's going on the UK, I think would be set for the UK model and a dog Before that you can imagine a way of rationalizing our three banking agencies so that instead of all three of us, you know, examining different categories of Banks and conducting basically similar activities. You can imagine a world we had one supervision agency and that would be the OCC. We have one Deposit Insurance in resolution agency. That would be the FDIC and we have one agency to conduct monetary policy. That'd be the Federal Reserve that would make a lot of sense. I said that that's not the system we have and I would argue that the system is a little bit less confused than most people would think just based on what they read the newspaper what I mean by that is we don't have them overlapping jurisdiction..

Banks Amazon Community Bank OCC FDIC Federal Reserve Deposit Insurance UK America Brian
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

05:48 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"It's if you're just deferring it's not a big risk, but there's no way to manage knowing what that is, except from some of the more sophisticated organizations are doing models based on that. But again unchartered territory at the OCC we do get pretty interesting reports of cash flows going through our bank job. One of the things that has allowed me to sleep at night for the last three months has been to things that aren't obvious on the face of the day that you read about the newspaper. So, you know in the newspaper, for example, you read that the unemployment has expired you read that the PPP program has now been exhausted and that would make you think oh my God, if we don't get another rescue back to work big trouble, but I can see deposit account balances and I can see that a certain percentage of those funds are still sitting on Spence in people's checking and savings accounts, which tells me there's some amount of dry powder left, you know before we run out now there's less than there was but about 20% of those dollars are still sitting in deposit accounts, which tells me we've got another month or two of Runway before things get dire. So so I see that another thing that you would not know if you only read the papers, is that a certain percentage of these mortgages that are in a forbearance Arrangement right now are still contractually current they're still paying on time every month and it's just that the borrower took out forbearance as a hedge against, you know future problems. You wouldn't necessarily birth. That if all you read was the newspaper headlines, so so that's my Optimus way of saying things could get bad. They really could but we do seem to have some Runway left in front of us here and if things took a turn on in another six or eight weeks we may yet get out of the woods. Okay? What role do you see AI taking in banking especially in regard to the way that we make evaluations. So for several years concerns have been raised about inadvertent discrimination, either built into loan AI or developing the systems that they learn how does the OCC get involved in auditing that type of dynamic package actually looking at that exact issue right. Now, you know, I think one of the reasons that AI is not going to broader adoption is the regulars haven't spoken more clearly about what we think the risks and benefits of these kinds of Technologies are dead. So on the credit side, I would tell you my personal philosophy. Is that a I has to potentially enormous benefits one is a financial inclusion benefit. The other is a credit risk management benefit. Let me start with credit risk management. So right now the most predictive models for credit underwriting only capture around 65% of credit performance, which means dead but a significant amount of the time we are either making loans that are going to default but we don't know it or we're denying loans that would have performed but we don't know it right the best month or only capturing about 65% of performance. The promise of AI is that AI is not dependent on a human being making educated guesses about what factors might predict your future credit. That's right. So when we look at your FICO score or your current assets or your loan-to-value ratio, those are not irrelevant, but they're far from the only things that would predict your future performance and if it turned out that European performance might depend on your ZIP code or they might depend on who's in your Facebook Network or it might depend on any of a number other things the closer we can get to 100% credit for predicting the better these things will be in a game. Is much more well suited to do that than even the most talented econometrics expert. So I start with that more important in this touches on your point about Fair lending risks. Our current credit models are highly tied to existing credit score methodologies, like Vantage score and FICO and others. Those things are super useful. It's really good. We have those things but there's a significant number of people who don't have a credit score because those stores are built on certain kinds of data and not everybody generates that data. So as I've said a million times before if you're the kind of person who pays your rent on time, but you don't have a package and you pay your utility bills on time, you know, but you don't have a credit card et cetera. You may be really good at making recurring payment obligations every month and yet you have no credit score because the Legacy systems don't capture them. I isn't dependent on you having a credit score AI is simply looking at all available data across all people who have you know, any kind of a credit app. And making predictions based on Big Data as to whether you're performing not even if you don't have a credit score that would be super useful for financial inclusion because again, there are forty-five million Americans disproportionately many of them people color who don't have a credit score now, there's some risk in this right which is a i does not allow us to unpack the box and figure out which elements were leading to A Thousand Mile or what approval inevitably because of a history of unequal wealth of income distribution our society any metric that you have will affect black people in particular more heavily than white people Thursday available and yet the low-hanging fruit here is there are a lot of minorities who should have loans anyway who are just as credit worthy as anybody else's let's start by serving them cuz that's easy and then we can do the hard work of and what about the people who aren't credit-worthy on any measure we can figure out how do we help those people? But if we haven't even solved the easy problems in our society, you know, we shouldn't get home. Drunk by the fact that there are also hard problems our research we've done for the Jewish World Bank report shows that those organizations have the most comfortable. They are the top five banks. In addition. There are some examples into smaller and certainly many of the synthetic firms. Is there a need to or desire to keep more of a Level Playing Field when you talk about things like and Technology cuz you know many organizations home except for risk really having fully embraced AI or the ability to take credit scores.

AI OCC Spence Facebook Jewish World Bank
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

05:40 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"At a limited-capacity starting this week. There's certain signs wage. Maybe we're going to come to our senses and reopen if that happens. I think the system will be okay. If not, we're going to have to rethink risk management part of the whole dynamic of not being in this position ever before and you don't know what to measure it against you. Look at even miss a restaurant industry not knowing how many restaurants are simply open to pay their employees with the government checks at the receiving and really not in business and you were getting to the Fallen wage when that fifty percent guideline becomes a lot tougher when you don't have outdoor dining correct, but even more so you have the situation on mortgages. We're just because a person for gold loan payments wage doesn't mean they couldn't make loan payments. They could simply be using those funds to pump up their savings account for risk. It's if you're just deferring it's not a big risk, but there's no way to manage knowing what that is, except from some of the more sophisticated organizations are doing models based on that. But again unchartered territory at the OCC we do get pretty interesting reports of cash flows going through our bank job. One of the things that has allowed me to sleep at night for the last three months has been to things that aren't obvious on the face of the day that you read about the newspaper. So, you know in the newspaper, for example, you read that the unemployment has expired you read that the PPP program has now been exhausted and that would make you think oh my God, if we don't get another rescue back to work big trouble, but I can see deposit account balances and I can see that a certain percentage of those funds are still sitting on Spence in people's checking and savings accounts, which tells me there's some amount of dry powder left, you know before we run out now there's less than there was but about 20% of those dollars are still sitting in deposit accounts, which tells me we've got another month or two of Runway before things get dire. So so I see that another thing that you would not know if you only read the papers, is that a certain percentage of these mortgages that are in a forbearance Arrangement right now are still contractually current they're still paying on time every month and it's just that the borrower took out the forbearance as a hedge against, you know future problems. You wouldn't necessarily birth. That if all you read was the newspaper headlines, so so that's my Optimus way of saying things could get bad. They really could but we do seem to have some Runway left in front of us here and if things took a turn on in another six or eight weeks we may yet get out of the woods. Okay? What role do you see AI taking in banking especially in regard to the way that we make evaluations. So for several years concerns have been raised about inadvertent discrimination, either built into loan AI or developing the systems that they learn how does the OCC get involved in auditing that type of dynamic package actually looking at that exact issue right. Now, you know, I think one of the reasons that AI is not going to broader adoption is the regulars haven't spoken more clearly about what we think the risks and benefits of these kinds of Technologies are dead. So on the credit side, I would tell you my personal philosophy. Is that a I has to potentially enormous benefits one is a financial inclusion benefit. The other is a credit risk management benefit. Let me start with credit risk management. So right now the most predictive models for credit underwriting only capture around 65% of credit performance, which means dead but a significant amount of the time we are either making loans that are going to default but we don't know it or we're denying loans that would have performed but we don't know it right the best month or only capturing about 65% of performance. The promise of AI is that AI is not dependent on a human being making educated guesses about what factors might predict your future credit. That's right. So when we look at your FICO score or your current assets or your loan-to-value ratio, those are not irrelevant, but they're far from the only things that would predict your future performance and if it turned out that European performance might depend on your ZIP code or they might depend on who's in your Facebook Network or it might depend on any of a number of other things the closer we can get to 100% credit for predicting the better these things will be in a game. Is much more well suited to do that than even the most talented econometrics expert. So I start with that more important in this touches on your point about Fair lending risks. Our current credit models are highly tied to existing credit score methodologies, like Vantage score and FICO and others. Those things are super useful. It's really good. We have those things but there's a significant number of people who don't have a credit score because those stores are built on certain kinds of data and not everybody generates that data. So as I've said a million times before if you're the kind of person who pays your rent on time, but you don't have a package and you pay your utility bills on time, you know, but you don't have a credit card et cetera. You may be really good at making recurring payment obligations every month and yet you have no credit score because the Legacy systems don't capture them. I I isn't dependent on you having a credit score AI is simply looking at all available data across all people who have you know, any kind of a credit app. And making predictions based on Big Data as to whether you're performing not even if you don't have a credit score that would be super useful for financial inclusion because again, there are forty-five million Americans disproportionately many of them people of color who don't have a credit score now, there's some risk in this right which is a i does not allow us to unpack the box and figure out which elements were leading to A Thousand Mile or what approval inevitably because of a history of unequal wealth of income distribution our society any metric that you have will affect black people in particular more heavily than white people Thursday available.

AI OCC Spence Facebook
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

01:46 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"You can't have those Industries with social distancing you can open at 50% capacity that will extend your Runway to bankruptcy by a period of time but the industry itself is not viable on this basis and somehow, you know, people don't seem to be ready to come grips with that fact. So we look at those things and the reserve being taken against those assets and we see being dead. Flashing red lights on the horizon unless again, we either change our risk tolerance or figure out another way to adapt those kinds of things are problems. Then there are subject matter risks, like cyber-risk. We're off criminals and Sovereign threats have gone through the roof during this period I think the cybercriminals know that lots of us are glued to our screens all day today. We're not in our best decision-making framework because of the strength of the pandemic and shutdowns and everything and as a result much more likely to click a link we shouldn't click or to fall victim to an internet scam or whatever and in the world of managing, you know, the banking system is a real risk when foreign actors decide to take advantage of the situation. So there's a lot to worry about but again, I come back to I'm inherently an optimist. We've shut things down for six months, Hopefully, we're coming to a place where mostly we're seeing a reopening Trend Florida fully reopened recently even New York as allowing indoor dining at a limited-capacity starting this week. There's certain signs wage. Maybe we're going to come to our senses and reopen if that happens. I think the system will be okay. If not, we're going to have rethink risk management part of the whole dynamic of not being in this position ever before and you don't know what to measure it against you. Look at even miss a restaurant industry not knowing how many restaurants are simply open to pay their employees with the government checks at the receiving and really not in business and you were getting to the Fallen wage when that.

Trend Florida New York
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

06:24 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"Same time. There was a need to modernize the regulatory structure. We have worked under four decades over last four months. What does have been like and was it all that you expected. I expected a lot less than this. So it's been everything. I always wanted and more it would be the optimistic way of putting a gym. Thanks for having me and for giving me this platform to chat with your listeners, I would say the toughest thing in A Moment Like This is not to let the Urgent overtake the important. There were a series of macro Trends going on birth. Finance long before the kovacic it down occurred. And if anything, I think what we've learned from Covetous, is that the change to a more modern Financial system has to accelerate if we're going to sort of everybody in this country who needs access to financial services. That's all the more urgent in a world where people aren't willing to go into retail shops. They don't want to go to a bank branch. They don't want to touch cash all of these things in some level sort of accelerate this trend toward Technology Innovation. So we have to do those things. But at the same time we're in an environment where banks are under real stress. People are losing jobs. We're shutting down whole sectors of the economy. People are going bankrupt and banks have to support that so we have to be able to do more than one thing at a time, but I don't want to be knocked off the long-term agenda because there's a short-term emergency. We have to be off to address both things it pretty much worked together at the time. We were shutting down the industry really ramped up in many ways from the perspective of certainly digital banking obviously, none of us in the industry worth. Here for the shutdown. It occurred in March or the financial ramifications of a country that pretty much was at a standstill how well you believe that both traditional and non-traditional financial institutions have managed to changes brought on by the pandemic, you know, I would say that it's been fine so far with an asterisk and so when I say fine Banks would tell you earnings are underage massive pressure because net interest margin no longer exists. There are loan delinquencies on the horizon. They have it all come through the system yet. But if we don't turn on the economy broadly and soon, you know, we we know that a lot of choice loan categories are going to be under stress. If we don't have another cares act and we don't open the economy. We could have major recessionary pressures. So it's fine today. Remember this is a recession of choice. We have decided that it is less risky to turn off the entire economy than it is to endure the pretty unevenly distributed depredations of the coronavirus. So that's a choice we've made off. A choice will become more costly overtime. So that's a problem. So traditional Banks they're doing fine. They're well-capitalized are serving their customers. Their loans are being, you know worked out in ways that we would want them to work out at the same time. There's really really good that we've got this Tech sector in finance today because when it came time to roll out the paycheck protection Loan program, for example, or various other of these rescued packages, we really need an innovator's to figure out a way to rapidly reach large numbers of customers at the big Banks were a little bit slow to do. We need a fraud detection systems. The traditional systems couldn't capture Etc and a lot of that helped him from fintech. I'll just tell you one very quick vignette, which is early in the rollout of these various covid-19 packages. We convened a series of listening sessions with both Banks and fintech companies. And what was very clear year was they each needed each other, you know, the banks needed context to help them do risk assessments and identity verification checks and other things and the syntax needed the banks as the source of capital through which you know these dollars off. A flow so it was a good thing in the end. I think you meant to loan business. And obviously the impact on the on all types of loans has yet to be realized all financial institutions increase their loan reserves while some back into companies have all been shut down their operations from a loan perspective. What risks are you looking at closely? There are a couple of things that are of great concern to us at a macro-level took very concerned that we continue to have to examine our banks remotely. And so regardless of what you're talking about credit risk or operational risk cyber risk for something else. It's always easier to detect problems face-to-face off indeed as I've learned from our bank examiners here at the OCC many of the greatest Bank froze in history weren't discovered based on management reports or slide decks to the board. They were discovered. Well examiner sat in a meeting and he heard something that seemed inconsistent with something somebody else said in that meeting and he followed up and that's when he discovered there was some kind of a fraud or some kind of a cover-up. So to macro level simply having birth. Work from home is a risk to the entire system and I think is not a sustainable long-term strategy. If you go one level below that we think about it in terms of their individual sector wrists that are really standing out to us. So for example on the credit side, there's some industries that are doing just fine and some industries that seem like they are under real threat. So anybody who's an investor in a commercial office property right now is really wonder is anyone in America ever going to come back to work? Because if they don't we've got a lot of square footage that's going to go make and that's going to be a problem. If you're a lender to the hospitality industry or the travel industry industries that depend on density and turning tables and room occupancy. You can't have those Industries with social distancing you can open at 50% capacity that will extend your Runway to bankruptcy by a period of time but the industry itself is not viable on this basis and somehow, you know, people don't seem to be ready to come to grips with that fact. So we look at those things and the reserve being taken against those assets and we see being dead. Flashing red lights on the horizon unless again, we either change our risk tolerance or figure out another way to adapt those kinds of things are problems. Then there are subject matter risks, like cyber-risk. We're off criminals and Sovereign threats have gone through the roof during this period I think the cybercriminals know that lots of us are glued to our screens all day today. We're not in our best decision-making framework because of the strength of the pandemic and the shutdowns and everything and as a result much more likely to click a link we shouldn't click or to fall victim to an internet scam or whatever and in the world of managing, you know, the banking system is a real risk when foreign actors decide to take advantage of the situation. So there's a lot to worry about but again, I come back to I'm inherently an optimist. We've shut things down for six months, Hopefully, we're coming to a place where mostly we're seeing a reopening Trend Florida fully reopened recently even New York as allowing indoor dining.

Banks fraud macro Trends OCC fintech Trend Florida America New York
"occ" Discussed on Banking Transformed with Jim Marous

Banking Transformed with Jim Marous

05:08 min | 1 year ago

"occ" Discussed on Banking Transformed with Jim Marous

"Same time. There was a need to modernize the regulatory structure. We have worked under four decades over last four months. What does have been like and was it all that you expected. I expected a lot less than this. So it's been everything. I always wanted and more it would be the optimistic way of putting a gym. Thanks for having me and for giving this platform to chat with your listeners, I would say the toughest thing in A Moment Like This is not to let the Urgent overtake the important. There were a series of macro Trends going on birth. Finance long before the kovacic it down occurred. And if anything, I think what we've learned from Covetous, is that the change to a more modern Financial system has to accelerate if we're going to sort of everybody in this country who needs access to financial services. That's all the more urgent in a world where people aren't willing to go into retail shops. They don't want to go a bank branch. They don't want to touch cash all of these things in some level sort of accelerate this trend toward Technology Innovation. So we have to do those things. But at the same time we're in an environment where banks are under real stress. People are losing jobs. We're shutting down whole sectors of the economy. People are going bankrupt and banks have to support that so we have to be able do more than one thing at a time, but I don't want to be knocked off the long-term agenda because there's a short-term emergency. We have to be off to address both things it pretty much worked together at the time. We were shutting down the industry really ramped up in many ways from the perspective of certainly digital banking obviously, none of us in the industry worth. Here for the shutdown. It occurred in March or the financial ramifications of a country that pretty much was at a standstill how well you believe that both traditional and non-traditional financial institutions have managed to changes brought on by the pandemic, you know, I would say that it's been fine so far with an asterisk and so when I say fine Banks would tell you earnings are underage massive pressure because net interest margin no longer exists. There are loan delinquencies on the horizon. They have it all come through the system yet. But if we don't turn on the economy broadly and soon, you know, we we know that a lot of choice loan categories are going to be under stress. If we don't have another cares act and we don't open the economy. We could have major recessionary pressures. So it's fine today. Remember this is a recession of choice. We have decided that it is less risky to turn off the entire economy than it is to endure the pretty unevenly distributed depredations of the coronavirus. So that's a choice we've made off. A choice will become more costly overtime. So that's a problem. So traditional Banks they're doing fine. They're well-capitalized are serving their customers. Their loans are being, you know worked out in ways that we would want them to work out at the same time. There's really really good that we've got this Tech sector in finance today because when it came time to roll out the paycheck protection Loan program, for example, or various other of these rescued packages, we really need an innovator's to figure out a way to rapidly reach large numbers of customers at the big Banks were a little bit slow to do. We need a fraud detection systems. The traditional systems couldn't capture Etc and a lot of that helped him from fintech. I'll just tell you one very quick vignette, which is early in the rollout of these various covid-19 packages. We convened a series of listening sessions with both Banks and fintech companies. And what was very clear year was they each needed each other, you know, the banks needed context to help them do risk assessments and identity verification checks and other things and the syntax needed the banks as the source of capital through which you know these dollars off. A flow so it was a good thing in the end. I think you meant to loan business. And obviously the impact on the on all types of loans has yet to be realized all financial institutions increase their loan reserves while some back into companies have all been shut down their operations from a loan perspective. What risks are you looking at closely? There are a couple of things that are of great concern to us at a macro-level took very concerned that we continue to have examine our banks remotely. And so regardless of what you're talking about credit risk or operational risk cyber risk for something else. It's always easier to detect problems face-to-face off indeed as I've learned from our bank examiners here at the OCC many of the greatest Bank froze in history weren't discovered based on management reports or slide decks to the board. They were discovered. Well examiner sat in a meeting and he heard something that seemed inconsistent with something somebody else said in that meeting and he followed up and that's when he discovered there was some kind of a fraud or some kind of a cover-up. So to macro level simply having birth. Work from home is a risk to the entire system and I think is not a sustainable long-term strategy. If you go one level below that we think about it in terms of their individual sector wrists that are really standing out to us. So for example on the credit side, there's some industries that are doing just fine and some industries that seem like they are under real threat. So anybody who's an investor in a commercial office property right now is really wonder is anyone in America ever going to come back to work? Because if they don't we've got a lot of square footage that's going to go make and that's going to be a problem. If you're a lender to the hospitality industry or the travel industry industries that depend on density and turning tables and room occupancy..

Banks fraud macro Trends fintech OCC America
Leadership of 'French Oscars' resigns amid Polanski controversy

WBZ Midday News

00:32 sec | 2 years ago

Leadership of 'French Oscars' resigns amid Polanski controversy

"App controversy at France's equivalent to the Oscars let's go to Paris and CBS's Alain cop the entire board of the French Cesar academy has resigned following backlash over twelve nominations for a film by Roman Polanski hundreds of actors and filmmakers of cold for change in the leadership complaining that women are sidelined and criticizing the academy's president who previously suggested Polanski leads the festival jury women's groups have condemned the OCC how to me support for Polanski still wanted in the US for unlawful sex with a thirteen year old

France Oscars Paris CBS French Cesar Academy Roman Polanski President Trump OCC United States Alain
Victims In Kobe Bryant Crash Have Now All Been Identified

WBZ Morning News

00:47 sec | 2 years ago

Victims In Kobe Bryant Crash Have Now All Been Identified

"Well there were nine people in total who died in yesterday's helicopter crash outside of LA and some of those on board had ties to New England as we hear from WBZ's Madison Rogers learning more about the nine victims in Sunday's helicopter crash in California that killed NBA legend Kobe Bryant and his thirteen year old daughter three of the other victims were former Cape Cod summer league baseball coach John Altobelli his wife Kerry and his daughter a list saya ultimately was head coach of the Brewster white caps from twenty twelve to twenty fourteen the white caps weeded out Sunday night that their heartbroken and shocked Altobelli also coached at orange coast college in California for twenty seven years hundreds of people gathered on the OCC field and remembrance Sunday

LA New England WBZ Madison Rogers California Kobe Bryant John Altobelli Kerry NBA Cape Cod Baseball Orange Coast College OCC
"occ" Discussed on Consumer Finance Monitor

Consumer Finance Monitor

06:10 min | 2 years ago

"occ" Discussed on Consumer Finance Monitor

"I just be guessing. I I think I wouldn't expect to see a vital role in less than three months or so but It seems to me that this is a more discreet role making than others we've seen for example day Lung alone rulemaking. Where cycle to be controversial? Don't you think there will be a lot of consumer advocates and plaintiff's attorney's That may be involved in cases where this could have an impact I would assume They will not like what the OCC the FDIC you're proposing here. This will clearly be controversial. We have already seen blockposts from The plane of side or consumer advocacy groups that Really they're up in arms about the proposed any professor Adam. levittown add ED GW George Talent. I can't remember which one He's already written A pretty detailed blog post setting forth a His position Now he's I know didn't like the filing of the AMIGA spree and it doesn't like the proposed right here at all I guess just a concern I have the the agencies better get this thing wrapped up Before the end of the year probably early before the election But let you know assuming hypothetically We have a Democratic president next January changes will happen at the the OC in the FDIC and Just the gas. I'm not prepared to accept that your hypothetical but yes I I think there is you magic professor Lebanon. And he is a very bright guy and he Writes forcefully absolutely so It is incumbent upon the industry to have its advocates Put their best foot forward in support of this role in. Yes it if it doesn't happen this year before January There is at least posssibility that it will never happen. Yeah so assuming it gets finalized Jeremy This really happens. Do the problems in this area goal way or is there anything else left for us to worry about the so the browns do not go away away and There are many programs are out there where a bank in a nonbank Asian will will partner together to offer loans and other consumer financial products and these programs are subject to attack not only under the mad doctrine but also under a a a row called the true lender roll in here the Opposition says that while the longest formerly made by the back that in in substance. It's the non back that He has the greater financial interests the so-called predominant economic look interest in the loans. In that win the nine back does all the marketing does all the servicing and acquires the loan or the Overwhelming economic interests in the loan that each should be regarded as in substance. The true lender and since nine banks do not have the special usery authority provided by federal law than If the lender is required derived this the non-banking agent The parties to these programs are basically in a world of her. Isn't this an issue that you and I- litigated many years ago when payday lenders had partnered with Banks I think. At the time it was principally unsuitably national banks but there may be some state chartered banks involved and there had been a class class action litigation and I seem to recall. You won an important case the Hudson case. If my recollection serves me correctly was in federal court in Indiana. My there's no way you forgotten that case. It was a big case it was an important case and and yes. The decision was favorable to the industry in the court. Basically said this is not an area where piecemeal litigation should establish the rules that CAQ that the Supreme Court recognized in its leading case the Marquette decision that certainty was important to the banking industry. It further recognized that The protection of usury laws was a matter best left to Congress and the courts by establishing exceptions to The the principle that were outlined by Congress So that was basically what we argued in Hudson and the court adopted. That argument basically said that There were some superficial appeal to this idea of recapitalization but it was something best left to Congress in perhaps the banking agencies sees and and I felt that way ten years ago or when Hudson was decided in. I still feel that way I think there really really is a place for Congress.

Congress Supreme Court FDIC George Talent Hudson professor browns Indiana attorney Adam. levittown partner president
"occ" Discussed on WCBM 680 AM

WCBM 680 AM

02:00 min | 2 years ago

"occ" Discussed on WCBM 680 AM

"The OCC WCDMA Baltimore and WCDMA superiority in space I'm Pam who sell fox news that's the goal of president trump who signed a spending plan that pumps more money into the Pentagon and creates a space force the browser twenty national defense authorization act is about making sure our war fighters tools resources and equipment you need to fight and win all the time the president at joint base Andrews yesterday its headquarters won't be announced until next year with Huntsville Alabama and Colorado springs vying for the honor and increased federal funding two billion dollars over the next five years and sixteen thousand personnel mostly pulled from the Air Force which already has an Air Force space command in Colorado socks is Jennifer Griffin the military sees the space force as an affirmation of the need to more effectively organize for the defense of U. S. interest in space as China and Russia ramp up efforts to develop technology that could allow them to disrupt US satellites privacy advocates don't like it a pilot program that'll put surveillance planes in the skies over Baltimore next year as a way of helping law enforcement fight violent crime David Roach is with the ACLU equivalent of having a police officer follow you every time you walk out the door of your house the program will focus on murder shootings and robberies footage from the program will not be used in police misconduct cases heading out to the shopping mall expect plenty of company today is known as super Saturday and retailers are predicted to ring up record sales with around one hundred forty eight million consumers expected to participate according to the national retail federation that's fox's Hillary bar ski along with deep discounts many retailers are extending store hours today's sales could top thirty four billion dollars America's listening.

officer Hillary murder ACLU Colorado Alabama Huntsville America fox national retail federation Baltimore David Roach US Russia China Jennifer Griffin Andrews president Pentagon
"occ" Discussed on KNST AM 790

KNST AM 790

02:03 min | 2 years ago

"occ" Discussed on KNST AM 790

"The sugars that are inside so the problem with that is that when they do that the plant never has a chance to basically breed so there's no genetic diversity all of the garbage out there that are making to kilo or mescal are all of those types of things all come from two individuals so the genetics are terrible which means that they're really susceptible to disease so there's a biologist out there and he's working on this as a problem because it's actually happening it's happened previously the bats are to bananas where the the species a banana that we used to love is all wiped out Sark rampant Anna's or just not as good as what a bummer yeah but the same problem I'm like waiting for the good part like no the bananas they're gonna okay sorry ridiculous not going to there is hitting the OCC obvious and so bat biologists are working with the people down there to start letting some of their adoptees bloom and start breeding and creating that genetic diversity so there's two Q. out there call back friendly to kilo which means that they have allowed five percent of their copies to flower and start changing okay because bats pollinated out is right yes bats are one of the primary one pollinators of the a copy there are other pollinators and their one primary so okay so when you're drinking this bat friendly tequila helping bats right okay that is if you like that delicious to and so there's a few different brands he's going to I don't know which ones he specifically bringing it there's two kilo otro is one of the biggest and most common one okay scene so if you guys want to participate in the tequila tasting tickets are on sale now this probably get them soon because it's limited seating I we have times at seven and a half to get to sample three different types of tequila David Cerro with us some brave Siembra spirit there we go okay that place I he's gonna be there talking about the history of a god is in history of you know why bats into kilo what they have in common and you get some chips and salsa so seven.

Anna OCC David Cerro Sark five percent two kilo
"occ" Discussed on Mohr Stories With Jay Mohr

Mohr Stories With Jay Mohr

02:26 min | 3 years ago

"occ" Discussed on Mohr Stories With Jay Mohr

"Let's see. How is there? Not. There is a whole other song, it appears the. Pedes? Aw, truth EP, the OCC with their new songs beach. You don't know what I mean? Peaches all white audience know, they know exactly what you meant. Doubt yourself too much do something all white audit. You'll yet to see surprise you. You don't eat them. So people that you know, you would think you'll get a joke. They're sitting there with the mouth of any like, really? You know, I think I can put light on it. Everybody speak so much now because everyone's afraid of getting like fucking tripped up. Everyone feathers the nest before they answer a question you go. Hey, what how old you go? What fifteen why am I talking to so many fifteen year olds? No coach him, but like the little part, and I like what fifteen. And it's like when you just say shit directly. They're like all like, they're looking for the double meaning. But it's not there. See a peach is in of itself double meaning. But it means all the white people like the color, peach. That's what it means. And so if they don't get it, you don't need them. Do get it. Trust me. Go don't explain that ship. Thank you, unless it's funny. You comedic -ly like when I'm on stage. Just like somebody goes what I go. I said and that one person we'll do the entire minute half again. Make them feel like stupid government in what? Boxer oxide like bar bag of hair. I like dumb as a bag of hair. So when you on stage, and it's like, my with my audience you want to deliver because it's my show, but you just you deliver periods. I hope that's out of your head forever. But like if it's an all black audience, a different vibe going up is different vibe with an all white. It's really. Because I don't know what it's like. With a black audience. It depends on the the the the black the level that you know, what I mean like, I'm Gary level. All sentence. It depends on this is the level of what the black of blackness. Exactly..

OCC fifteen year
Inspectors from the Organisation for Prohibition of Chemical Weapons to begin work in Syria

02:04 min | 4 years ago

Inspectors from the Organisation for Prohibition of Chemical Weapons to begin work in Syria

"Desmond's new project the vision lab is the first national database collecting vixen records from around the country also kentucky reviews john heinz first album of new songs and thirteen years that's on fresh air first news live from npr news in washington i'm jack speer the organization for the prohibition of chemical weapons says its inspectors will begin work in syria on saturday the watchdog group could provide the first confirmation of whether chemical agents were used against syrian rebels last weekend more from npr's david welna the opcw chemical weapons inspectors are traveling to syria at the invitation of that country's government which insists it did not carry out a chemical weapons tack and the damascus suburb of douma in an appearance before congress defense secretary jim mattis said he believed there was such an attack and the occ w could provide the evidence we will not know who did it they can only say that they found evidence or did not and at each day goes biogenetics a non persistent gas so it becomes more and more difficult to confirm it medicine sister that no decision has yet been made about how to respond to the suspected chemical weapons attack david welna npr news washington cia heading secretary of state designate mike palm pale was on capitol hill today for confirmation hearings before a senate committee palm peyot agreeing with a democratic lawmaker who said it would be quote catastrophic if the us were to initiate an attack against north korea and going on to say despite public comments about his hawkish nece he believes in measured response story is i'm hawk i'm hardliner you know i i read that and there's no one as you just heard in what i described there's no one who served in uniform who understands the value of display missy and the terror and tragedy that is war like someone who served in uniform it's the last resort it must always be so pompeo whoever also said he could foresee a situation where the us might have to move past diplomacy for example of north korean leader kim jong un were to directly threaten the.

Missy Pompeo Senate Mike Palm Congress Damascus John Heinz Kentucky Kim Jong Un United States Desmond North Korea Washington Cia Jim Mattis Douma David Welna