What banks are thinking about ahead of Fed's rate cut; credit union-bank mergers near record

Five big questions as banks await Fed's rate cut: After hikes pinched profits across the industry, a move in the opposite direction could be the start of a more promising trend. But bankers caution that the immediate effects of a September rate cut are likely to be small.

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Credit union-bank mergers approach all-time high: REV Federal Credit Union in suburban Charleston, South Carolina, plans to acquire First Neighborhood Bank in West Virginia. It marks the 15th deal this year involving a credit union buying a bank, closing in on 2022's record of 16 deals.

Philadelphia Fed president Harker to step down next year: Patrick Harker, the longest serving regional reserve bank president, will leave office in June 2025. Directors at the Fed bank have started the search for his successor.

BankThink: Regulators' safety and soundness judgments face questions: Recent Supreme Court decisions reducing the ability of regulatory agencies to interpret the meaning of federal laws make it likely that supervisory decisions based on assessments of banks' safety and soundness will face court challenges.

Small Biz Banking, our annual conference for bankers who serve small businesses in every way, is coming up soon. Join us in Las Vegas at the Encore, Oct. 9–10, 2024.

Fed hits two community banks with enforcement actions: The Federal Reserve fined a Montana bank for violating the National Flood Insurance Act and issued a cease-and-desist order against a Dallas bank over money-laundering concerns.