Bank News: Standard Charter CEO Bill Winters apologized for his ‘lower-value human capital’ remarks that he made about his employees. Flagstar CEO Joseph Otting will stay until 2028 when a successor will be named. Federal Reserve and FDIC approve US banks’ living wills. Senator Warren wants charter details from OCC. Jay Gould justifies conditional trust charter approvals. Senator Warren questions Morgan Stanley exemption allowing them to fold their German investment bank into their holding company. President Trump directed the Federal Reserve to review how it grants access to central bank payment rails for fintechs. Chime is definitely in the market for a bank charter. Ally offers new brand platform. CFPB eliminates information prior to February 2025. Goldman Sachs settles 1MDB case. This episode reviewed multiple articles from Banking Dive.

Bank News: CEO apologies, EOs, Living wills, Charters, Exemptions, and Fines!

The Banker Next Door

# Full Transcript

**Podcast:** The Banker Next Door

## Participants

- **Dr. Joseph Bergquist** (The Banker Next Door)

## Transcript

How is everyone doing today? Welcome back to another episode of The Banker Next Door. I'm your host, Dr. Joseph Bergquist. So today's episode is another bank news episode. I've got 12 articles loaded up and I'm going to run through a bunch of these real quick with everyone here today. Hopefully, again, hopefully people seem to be enjoying this format. So I'm kind of sticking with it for the for a little while here to see how we keep going. But so I've got 12 articles here from Banking Dive today. And we're going to start off here with Standard Charter CEO,

Apologizes over lower value human capital comment. So CEOs from JPMorgan Chase, HSBC and Barclays added their takes to polarizing remarks by the Standard Chartereded Chief Bill Winters in explaining his bank's increasing embrace of AI. Now, what happened here very quickly was Mr. Winters went over to Hong Kong and he was making statements about how Standard Chartereded was going to improve itself through the use of AI. And in the course of public comments, he basically

referred to his employees as lower value human capital. As you can imagine, that did not go over well. It did not go over well in the press, certainly did not go over well with his employees. And he did a whole lot of backtracking. Now, the problem I think here for Mr. Winters is that I don't know that anybody was really buying the apology at the end of the day. And I think therein lies your problem. I think this was one of those rare moments of mask off, if you will. And the real feelings were allowed to be shown.

And so, and it was so bad that a lot of these other CEOs from a lot of these other big banks felt the need to chime in to basically say, whoa, I don't feel that way about my employees. So, yeah. So, so Mr. Winters really stepped in here this week and trying to apologize. But yeah, we'll see what happens there. But anyway, moving on to our next thing.

Flagstar extends CEO Odding's tenure, but sets up succession race. The bank named CFO Lee Smith and commercial and private banking chief Richard Raffetto as co-presidents, but is keeping Joseph Odding at the helm until March of 2028. Now, for anybody that doesn't know, Flagstar used to be, was it Community Bank of New York or New York? It was New York, obviously. Thank the pictures right there, right?

It was New York Community Bank was the bank that got into massive trouble and was able to basically get bailed out in a very real way. Basically, investors had to put in over a billion dollars in capital to bail it out. Now, Joseph Odding was a highly respected bank regulator for many, many years.

And he ends up coming in and taking over the bank. And my hats off to Mr. Odding. He has done seemingly a fantastic job in taking over what is now Flagstar Bank and basically just really getting them back to a healthy place. And again, and I ...

Bank News: CEO apologies, EOs, Living wills, Charters, Exemptions, and Fines!

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Bank News: CEO apologies, EOs, Living wills, Charters, Exemptions, and Fines!

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.