Top Story

• Hunt: Student borrowers might prefer banks to government
  A report on student loans from the Consumer Financial Protection Bureau and the U.S. Department of Education calls for borrowers to exhaust all federal options before turning to private lenders. But Richard Hunt, CBA president and CEO, says borrowers might prefer loans from banks. "Some people would rather deal with their bank than the federal government," Hunt said. Bloomberg Businessweek (7/20)     

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The CFPB Today

• Cordray: People will adjust to "new order" under CFPB
  Consumer Financial Protection Bureau Director Richard Cordray discusses the agency's first year, its focus on the mortgage market and its first enforcement action in this interview. Cordray says criticism about his appointment and the agency will dissipate over time. "And what happens over the course of time is people begin to reconcile themselves to a new order and the law of the land," he said. Los Angeles Times (tiered subscription model) (7/21)     

Industry News

• How would consumers respond to credit card surcharges?
  As a result of a settlement between credit card issuers and retailers over swipe fees, consumers could face new surcharges for paying with credit cards. How the situation will play out is unclear, given consumers' negative reactions to banks' debit card charges last year, writes columnist Chuck Jaffe. And neither consumers nor retailers are likely to welcome a return to cash. MarketWatch (7/20)     

• Yearly bank closings reach 38
  State and federal regulators on Friday closed a total of five banks in Georgia, Illinois, Kansas and Florida. That brings the yearly total to 38. At the same time last year, 55 banks had failed. The Wall Street Journal (7/20)     

• Big banks cut jobs as uncertainty looms
  The financial sector is cutting thousands of jobs, becoming more aggressive in containing costs as it deals with an uncertain economy and fewer deals. The industry cut 20,196 workers in the first half of this year, compared with 11,734 last year, according to outsourcing firm Challenger, Gray & Christmas. NBC News/Market Day blog (7/20)     

• Fed: Banks have more than 10,000 subsidiaries
  Large U.S. banks have launched thousands of subsidiaries in the past two decades, says a Federal Reserve study. The banks' legal units, totaling more than 10,000 collectively, help them avoid stricter regulations and lower their tax bills, the Fed says. Some lawmakers and regulators say that some banks are too complicated to unwind in the face of financial difficulties. Bloomberg Businessweek (7/23)     

Regulatory Report

• OFR: Regulators face "significant gaps" in financial information
  Regulators need more data to enable them to analyze problems in the U.S. financial system, says a report by the new Office of Financial Research. None of the regulators "individually has authority to look across the entire financial system," says the OFR, noting its mandate is to help get that information. Reuters (7/20), Bloomberg Businessweek (7/20)     

Technology Today

• Banks can make better use of consumer data
  Banks have access to large amounts of consumer data that could lead to new sources of revenue. They can learn a lesson about making better use of the data they collect from consumers by following strategies used by Amazon and Google, Amanda Alix writes. "Not only would using such information take the guesswork out of the creation of banking products for consumers, but it can also be used for risk reduction," she writes. NBC News/The Motley Fool (7/22)     

• Other News

• Bill would protect consumers against online fraud
  The Hill/Floor Action blog (7/20)     

Career Development

• Listen up: The skill the best leaders must develop
  The most essential skill that leaders need to develop is attentive listening, writes John Keyser. Even if we think we're already good listeners, studies show we forget 75% of what we heard just two days later. "By recognizing the importance of listening, and making a commitment to improving, the quality of your leadership and relationships will definitely improve," Keyser writes. Common Sense Leadership blog (7/16)     

Hot Topics

Top five news stories selected by CBA SmartBrief readers in the past week.

• CFPB to begin regulating credit bureaus (The New York Times (tiered subscription model))

• Banks offer prepaid cards that appeal to more consumers (CNBC)

• In its first year, CFPB grabs industry's attention (Bloomberg Businessweek)

• Low interest rates continue to challenge banks (The Wall Street Journal)

• Fewer families are willing to borrow for college, survey finds (The Wall Street Journal)

• Results based on number of times each story was clicked by readers.

CBA Connect

SmartQuote

Never interrupt someone doing what you said couldn't be done." --Amelia Earhart, American aviator