Money Talk: State Bank Commissioner Candace Franks To Stay

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STATE BANK COMMISSIONER CANDACE FRANKS TO STAY
Candace Franks, state bank commissioner, will stay in her position in Gov.-elect Asa Hutchinson’s administration. Hutchinson said Franks, who has served as bank commissioner under outgoing Gov. Mike Beebe, has received support from across the banking spectrum as well as groups in the field.

STRONG JOBS REPORT, GDP GROWTH
The U.S. economy grew 3.9% at the annual rate in the third quarter, according to revised real GDP data released last week. This was better than the 3.5% original estimate and suggests real GDP increased at an annualized 4.2% over the past two quarters. Among the healthy elements: consumer and business spending, exports, and inventory replenishment.

Real GDP is estimated to expand by 2.8% in the current fourth quarter, but consumer sentiment is still tentative. Lower gas prices are helping, but years of struggle remain a psychological barrier. Consumers are bothered by stagnant wages and job growth that remains positive, but not robust.

It’s just one week’s news, but Friday’s job report did provide the most positive employment gains in nearly three years. The U.S. Department of Labor reported that hiring accelerated in November with 321,000 jobs added.

“These were boom-like numbers,” said Mark Zandi, chief economist at Moody’s Analytics. “They indicate that the U.S. economy is on very solid ground.”

CONG.-ELECT FRENCH HILL DISCUSSES FINANCIAL SERVICES ASSIGNMENT
KUAR’S Jacob Kauffman interviews newly-elected Cong. French Hill, former CEO of Delta Trust & Bank. Hill has been named to the House Financial Services Committee and will bring a wealth of banking experience to the panel. From the interview:

Kauffman: It’s not quite final yet, but you’ll be taking your seat next month and you’ve already received a committee assignment – and it’s an important one. You’ll be dealing with housing, banks…names like Fannie Mae and Freddie Mac. You’re well known, and respected, among Little Rock’s business community. You founded a bank of your own, you certainly have knowledge that’s complimentary to the House Financial Services Committee. But it also presents the picture of the fox guarding the hen house. How do you make your case for not showing favoritism to an industry you’ve known for so long?

Hill: Excellent question, I have had in my career the opportunity to work as a staffer on the Senate banking committee back in the 80s and also in the U.S. Treasury Department helping oversee the economic policy manner of the Treasury Department. That combined with my private sector banking career gives me that balance I think to stay focused on that important balance between regulatory oversight and protection of consumer interests and a fair capital market system and economic growth.

Just one story, when I was at Treasury, I was responsible with the Securities and Exchange Commission for putting Drexel, Burnham, Lambert, resolving that company when it failed due to bad business practices. So, I think I’ve got experience on both sides of the equation.

Access the full interview here.

ARKANSAS CONSUMER SENTIMENT DIPS IN RECENT ARVEST SURVEY
Consumer sentiment has not changed much since summer, and almost half of the Arkansas respondents to Arvest’s Fall 2014 Consumer Sentiment Survey believe the next six months would be a good time to make a major purchase of household items.

The study, which looks at the Arkansas consumers’ outlooks on personal finances, buying conditions over the next six months, as well as business conditions in the next year and the next five years, found that 54% of Arkansans expect their personal financial situation to be unchanged during the next year. Another 26% expect some level of improvement during the same period.

Compared to June’s survey, the numbers are slightly changed with 52% over the summer believing their situation would remain unchanged and 28% expecting improvements. Read more here on the survey’s results.