Banking with Interest

Michael Bright, CEO of the Structured Finance Association and a former head of Ginnie Mae, joins the show to discuss the state of the U.S. housing finance system nearly two decades after the financial crisis. He explains why he does not think the system is fundamentally broken, what policymakers still misunderstand about the secondary mortgage market, and how issues like GSE reform, Basel III, private credit and fraud could reshape housing finance in the years ahead.

Banks have fought a comprehensive effort to ensure stablecoins cannot offer yield. But the Senate Banking Committee passed a bill that the banking industry still says falls short. Does that mean banks have lost the fight? Will a crypto market structure bill pass this year? Brendan Pedersen of Punchbowl News offers insights into the current and future state of play.

Richard Hunt, executive chairman of the Electronic Payments Coalition, discusses the expanding fight over interchange and why the battle is no longer centered only in Washington. He explains what is happening in states like Illinois and Colorado, why the OCC stepped in, and what could happen next in the courts and legislatures.

Deposit strategist Neil Stanley sits down with guest host Barb Rehm to discuss how AI is changing depositor behavior, pricing strategy, and the future of bank funding. He explains why static rate sheets and traditional CDs may become increasingly vulnerable as AI tools help customers optimize their cash automatically, and why banks will need more dynamic pricing, personalization, and frontline expertise to stay competitive.

Mike Hsu, the former acting Comptroller of the Currency, explains how waiting to adopt artificial intelligence has become a risk for banks and their regulators. He discusses why AI does not fit neatly into existing risk frameworks, how agentic AI is changing the cyber threat landscape, and why both banks and supervisors need to get more hands-on with the technology.

Nick Anthony, a policy analyst at the Cato Institute and a leading critic of central bank digital currencies, explains why the CBDC fight is not over even as many in Washington have turned against it. He discusses why some opponents are unhappy with the Senate's proposed ban tucked into the housing bill, why he is suing the government for a Justice Department analysis on the Fed's legal authority, and why broader financial surveillance may be the bigger issue.

Both the House and Senate have passed bipartisan bills designed to promote housing affordability, but the two chambers are now squaring off with each other over a final version, including whether it should include community bank regulatory relief provisions. Brendan Pedersen, financial services senior policy reporter at Punchbowl News and editor of its Vault newsletter, breaks down the debate, how it became so contentious, and what will happen next.

Brandon Milhorn, CEO of the Conference of State Bank Supervisors, argues that the Office of the Comptroller of the Currency is pushing beyond its statutory authority in areas including trust charters, stablecoins and mortgage escrow interest. He also discusses the rise of so-called "Franken-charters" and the risks he sees in the growing stablecoin market.

Ben Hoffman, chief strategy officer and head of consumer products at Fifth Third Bank, joins the show to discuss the bank's acquisition of Comerica and what it signals about the future of super-regional banking. He explains why size alone isn't a strategy, why 2023 was less a "regional bank crisis" than a lesson in concentration risk, and how diversification and discipline shape long-term resilience. Hoffman also weighs in on deposit competition, fraud and scams, regulatory and political uncertainty, and the growing role of AI in banking decisions.

Bowing to industry pressure, Senate Banking abruptly postponed its vote on the crypto market structure bill last week. Brendan Pedersen, senior policy reporter at Punchbowl News and editor of its Vault newsletter, details the dynamics behind the meltdown. He also discusses the odds for the Trump-led push to curb interchange fees and HFSC Chairman French Hill's efforts to pass community bank reg relief.

Julieann Thurlow, CEO of Reading Cooperative Bank, talks about the opportunities and challenges for community banks this year. She discusses the economic conditions, how community banks can innovate and where she'd like to see changes by policymakers.

It's safe to say 2025 has marked a dramatic change from the Biden-era bank regulatory agenda. The Trump-appointed regulators are talking about rethinking supervision, capital, and the Fed's entire approach to liquidity. What does this mean for banks and the system overall? Karen Shaw Petrou, managing director of Federal Financial Analytics, breaks it down.

Senate negotiators have started talking again on a crypto market structure bill after a breakdown in discussions earlier this year. Does the bill have momentum? Brendan Pedersen, the financial services reporter for Punchbowl News, breaks down the latest around the legislation, what it means for banks, and whether bank efforts to close loopholes around stablecoins paying interest have a chance of passage.