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The joint American Banker-Capital Performance Group study of 2025's top-performing banks reveals that for institutions under $2 billion of assets, success comes from a fee-income engine, a defensible lending niche and radical cost discipline.
For the past three quarters, more bank branches have opened than closed. It's a trend, though a slight one.
For the first time in 17 years, the number of U.S. bank branches is on a sustained rise.
First Guaranty in Hammond Louisiana agreed to a consent order with federal and state regulators that's aimed at improving its credit quality.
With retail investors projected to allocate $2 trillion into private equity, credit and similar investments over the next five years, asset managers are increasingly acting as a bridge to previously exclusive opportunities.
New York City's new pied-à-terre tax is prompting financial advisors to help wealthy clients reassess their options, from residency status to estate plans.
One of three Federal Open Market Committee to vote for a higher federal funds rate last month, the Cleveland Fed president is undeterred by the labor force decline in July.
As more traditional financial institutions turn to short-term liquidity offerings to meet growing consumer demand, legacy earned wage access providers are hoping to get their products in front of more employers – and their employees.
The agency will give qualified new-bank applicants a contingent authorization within 120 days of applying, with an additional year after that to organize the bank before final green light.
The new record arrives after five months of annual home-price growth, which surged to its highest in more than a year, according to ICE Mortgage Technology.
Amid competition for international transfers, the U.S. is taking baby steps to facilitate faster, more efficient transactions.
The average down payment across the list was 17.1%, well above 13.1% nationally, and the median credit score was 766, compared with 747 countrywide.
After years of acquisitions and spin-offs, the bank technology vendors are under pressure to sell parts of their businesses.
HBT Financial in Bloomington, Illinois, has agreed to acquire Tri-County Financial Group in a deal valued $204.6 million.
The bill, dubbed the Insider Trading Prohibition Act, sponsored by Sen. Jack Reed, D-R.I., would amend the Securities Exchange Act of 1934 to prohibit certain securities trading and related communications by people who possess material, nonpublic information.
Edward Jones financial advisors helped the firm reel in $17.7 billion in net new assets in the second quarter. And another recent filing gave clues about the firm's upcoming planned changes to equity stakes.
Senate Parliamentarian Elizabeth MacDonough will not allow Republicans to move ahead with slashing the Consumer Financial Protection Bureau's funding and Federal Reserve staff pay.
Pursuant to an executive order on "overcriminalization," the OCC said it will revise its guidance for referring regulatory offenses to the Department of Justice for criminal prosecution and will publish a review of criminally enforceable regulations by May 2026.
The president's rush to weaponize trade policy is going to accelerate efforts by other countries to decrease their reliance on U.S.-based payments processors. That's not in the country's interest.
The Senate rules-keeper has decided that Republicans can't use President Donald Trump's multitrillion-dollar tax bill to strip all funding from the Consumer Financial Protection Bureau and to cut salaries for many Federal Reserve employees.
The credit bureau is working with Plaid to provide lenders with current and predictive cash-flow data for consumers that don't have an extensive credit record.
The removal of the Consumer Financial Protection Bureau as a viable regulator has thrown the doors open to the kind of unscrupulous behavior that triggered the last major financial crisis.
The bank's investors hope to see the small community bank in Utah transform and grow into "a minority-owned version of Ally," as board chair Ashley Bell put it.
The Consumer Financial Protection Bureau is restricting its civil penalty fund from paying for consumer education and financial literacy programs.
Federal Reserve Chair Jerome Powell said the changes could touch the central bank's quarterly economic forecasts. He also discussed downsizing at the Fed and his tenure on the board of governors.
Both regional banks operate health savings account businesses, which could gain more customers, more fee revenue and more low-cost deposits if Congress includes a major HSA expansion in its final budget reconciliation bill.
Bill Pulte's social media posts saying inflation has fallen far enough added to intensified political pressure on the independent Federal Reserve chairman.
Even as unpredictable trade policies slowed down mergers in other sectors, banks have kept inking M&A deals at the same pace, according to a new report.
A group of more than 50 bipartisan financial experts, including former Fed Chairs Ben Bernanke and Janet Yellen, said that effectively eliminating the Office of Financial Research and weakening the Financial Stability Oversight Council would have devastating effects for the financial system.
The scheme used fake bank reps, social engineering and crypto to loot U.S. accounts across borders, according to the agency's Office of Inspector General.
The USDC issuer has added fintechs from Brazil and the U.K. to boost distribution. Plus, Klarna pumps the gas on AI and more in the global payments and fintech roundup.
U.S. District Judge Amy Berman Jackson agreed to temporarily block the Trump administration from firing more CPFB employees and said the White House could not delete or destroy any of the bureau's data or databases.
Sean Desmond, the new CEO of nCino, hinted at some of the products under development in an interview with American Banker.
Federal Reserve Chair Jerome Powell said reserve banks will no longer factor "reputational risk" into master account decisions. The crypto industry is encouraged by the commitment, but says more changes are needed.
Provident Bank announces its new chief lending officer; the SEC's acting chairman asks a federal court to delay scheduling cases involving a rule on climate-related disclosure; the merger deadline for Capital One Financial's proposed acquisition of Discover Financial Services is extended; and more in this week's banking news roundup.
The probes come at the request of Sens. Elizabeth Warren, D-Mass., and Ron Wyden, D-Ore., respectively the ranking members of the Senate Banking and Senate Finance committees.
Consumer and employees groups are seeking a restraining order against CFPB acting Director Russell Vought, arguing that he was unlawfully installed and has "no power to direct" the bureau.
The rollout of new technologies in point-of-sale retail payments in the U.S. has historically been slow, and consumer adoption of those new payment flows can be even slower. Can consumers' propensity for self checkout help push adoption?
The San Francisco-based bank announced that another consent order with the Office of the Comptroller of the Currency has been terminated. The six-year-old order was related to the bank's risk compliance management and certain loan practices.
A proposal to tie cancellation of private mortgage insurance policies to automated valuation models would add unnecessary risk to mortgage portfolios and would result in less, not more, affordable housing.
Elevations Credit Union is paying athletes at the University of Colorado Boulder by way of a new credit card. The annual fee, plus two cents per transaction, will go to a collective that provides financial support to Buffaloes players.
The bureau suggested this week that states should remove the exemptions banks enjoy from data privacy laws. California is a prime candidate to act.
The North Dakota governor's real estate background and affordable housing policies fit with the president-elect's plan to open up federal lands for new home construction.
Nicholas Takahashi and his team are accused of deliberately trying to poach the clients of a former colleague managing hundreds of millions in assets and producing more than $1 million a year in revenue.
The number of banks announcing plans to sell this year reached 108 by the end of Oct.; Truist Financial promoted Brad Bender to chief risk officer; Old Point Financial made Cathy W. Liles its chief financial officer; and more in this week's banking news roundup.
Sam Valverde, acting president of Ginnie Mae, has resigned after about six months in the job.
In its semiannual supervision and regulation report, the Federal Reserve flagged climbing loan delinquencies and a rising number of large bank citations for governance and controls.
The president-elect has nominated Jay Clayton to be U.S. Attorney for Manhattan. Clayton has no experience as a federal prosecutor.
The card brand uses a new form of generative AI that improves data sourcing, making human involvement less necessary.
This year, nine banks with more than $10 billion of assets made it onto American Banker's Best Banks to Work For 2024 ranking. Pinnacle Financial Partners in Tennessee is the largest bank on the list.
The bank's U.S. operations will be closely monitored during a yearslong probationary period, during which any sign of backsliding could trigger swift punitive action.
Treasury yields rose the day after President-Elect Donald Trump was picked. The short-term result: It's harder for commercial real estate lenders and borrowers to find common ground.
The Federal Reserve chair said there are no economic indicators calling for rapid rate cuts. He also addressed Fed independence, the impact of Trump's economic agenda and more.
Rep. Matt Gaetz, R-Fla., whose chances of getting confirmed as attorney general are unclear in the wake of allegations of sex trafficking and a House ethics probe against him, cuts a more populist profile than many expected from a Republican president.
Real-time payments and FedNow were top of mind at The Clearing House's annual conference this week. Here's how banks and payment companies see RTP's potential evolution.
The president-elect had previously said he would consider JPMorgan Chase CEO Jamie Dimon for Treasury secretary but later disavowed that statement.
The Treasury's financial crimes arm alerted banks to the dangers of AI-powered fraud, urging close monitoring and swift reporting of any suspicious activity.
Agriculture lenders expect more than a third of their borrowers to lose money this year, a development that could result in credit quality deterioration and impacts on banks' bottom lines.
This year, 22 banks with assets between $3 billion and $10 billion made American Banker's Best Bank to Work For 2024 ranking.
In a speech, Federal Reserve Gov. Adriana Kugler said sound monetary policy comes when electoral politics are kept out of central banking.
The incoming Trump administration, and state-level government across the country, should use the election as an opportunity to bring the supervisory treatment of fintech into line with the new reality of financial services.
Customized perks, AI-driven solutions and even freelance employees are all in play at banks as human resource managers confront the challenge of recruitment and retention.
California's banking market, shaken up by big acquisitions and last year's crisis, is drawing financial institutions seeking opportunity.
The agency had been on the verge of downgrading Philadelphia-based Republic First Bancorp's CAMELS rating to the lowest level but opted for a less severe remedy after a November 2020 visit.
The Financial Conduct Authority plans to regulate specific technology products that banks use to process payments and require testing. That and more in our global payments roundup.
The Dallas-based bank is accusing the Consumer Financial Protection Bureau of "pursuing an aggressive and overreaching investigation" into its role in a Treasury Department prepaid card program.
The reduced pace of consumers moving into delinquency adds evidence to the thesis that households are facing lower financial stress.
Recent multimillion-dollar elder fraud cases are leading to lawsuits and possible regulatory action.
Senior loan officers polled by the Federal Reserve reported that they further upped their standards for approving credit for customers. But they also signaled that concerns are easing and credit quality is poised for improvement.
The majority of banks on American Banker's Best Banks to Work For 2024 list are small banks with assets of less than $3 billion.
Amid growing awareness of mental health needs in the workplace, some banks are doubling down on benefits that go beyond traditional employee assistance programs. What's behind banks' heightened focus, and what's the long-term strategy for investing in this area?
Bank fees don't arise from a naked profit-grab, but from an effort to offset current or expected losses. Eliminating one kind of fee just pushes banks to find an alternative method of recouping those losses.
The Swedish payments company ends months of speculation about whether Klarna would list. Analysts valued the company last month at about $14.6 billion.
Credit Union Service Organizations such as Prizeout, have seen increased interest as credit unions get on board with automation.
With Sen. Mark Warner, D-Va., occupied on the Senate Intelligence Committee, Sen. Elizabeth Warren, D-Mass., is one step closer to leading Democrats on the Senate Banking Committee.
Anthony Gressak III, who also served as interim CEO of Nano Banc, allegedly obtained pandemic relief funds fraudulently.
Senate Majority Whip Dick Durbin, D-Ill., has scheduled a hearing on swipe fees for Nov. 19, but executives from Visa and Mastercard aren't among the confirmed witnesses for the lame duck hearing.
The Federal Reserve Board's top payments official said the agency should not move forward with its push to lower the cap on debit interchange fees until it has a better understanding of recent Supreme Court decisions.
The incoming administration has experience from its previous run, Bank of America's chairman and CEO said. He also said he would not join it.
CEO Robert Fehlman will retire at the end of the year and be succeeded by his predecessor, George Makris Jr., the Arkansas-based company said Tuesday.
The New York bank's planned $125 million public offering comes less than a week after Valley National raised more than $400 million with a similar transaction.
Small and midsized banks fail to implement key oversight measures on their third-party vendors, something regulators implore they fix, according to research released Tuesday.
Every time we revise bank capital rules, we uncover new flaws that leave banks unprepared for unexpected stress events.
Banks are trying to get a grasp of the Consumer Financial Protection Bureau's financial data rights plan, from preparing for an influx of data requests from fintechs to meeting ongoing compliance.
The Federal Reserve and the Consumer Financial Protection Bureau moderately increased the minimum prices at which the Truth in Lending Act applies to loans and leases.
Despite strong growth and solid profits, the Miami-based lender, formerly a business development company, still hasn't convinced the market it fits in as a bank.
The technology, which turns large language models into autonomous agents, could be a game changer for banks.
The Bureau of Labor Statistics has been so underfunded, for so long, that it has been forced to propose cuts to the vital Current Population Survey, which tracks the unemployment rate. Congress cannot allow that to happen.
Regulators have never held a hearing on whether to revoke the charter of a bank convicted of a money-laundering-related violation. As TD Bank nears a "global resolution" in connection with its compliance failures, it's unlikely to buck the trend.
In a letter to Acting Comptroller Michael Hsu, Democratic Sen. Elizabeth Warren urged the regulator to curtail the megabank's growth in response to its failure to improve its risk management programs.
Coordinated strikes by dock workers along the Eastern Seaboard and the Gulf Coast could cause issues for banks that provide credit to foreign shipping groups and domestic trucking companies.
The $3.4 billion-asset organization based in Phoenix said it would acquire 1st Bank Yuma in the record-setting 17th deal of 2024 involving a credit union buying a bank.
Recent advancements in transaction processing aim to improve visibility into cash flow, which can be thrown into chaos with uncertain shipments.
The OCC has filed a legal brief backing the banking industry's challenge to Illinois' Interchange Fee Prohibition Act, arguing the law would interfere with national banks' federal authority, fragment the national payment system and force banks to halt credit card usage in the state.
The Federal Reserve issued two enforcement actions, one against a bank in Montana, the other against a former information technology employee in Wyoming.
The Visa Tokenized Asset Platform will allow banks to "mint, burn and transfer" tokens as more financial institutions and businesses express interest in how cryptocurrencies and blockchain technology can improve their operations.
The Federal Deposit Insurance Corp. wants to remove an exemption that allows index funds to invest freely in bank stocks. The result will be damaging to the investors who have come to rely on the funds' steady returns.
As political campaigns become more expensive and more complicated, meet the banks that have become the preferred financial institutions for the Republican and Democratic parties.
The top five credit unions on this list have more than $36 billion in unsecured card loans and lines of credit.
Federal Deposit Insurance Corp. chair Martin Gruenberg said an FDIC study proves relationship-driven lending practices remain crucial to small business lending and economic stability, despite technological advancements in the banking industry.
In a six-month pilot, NatWest and Metro Bank shared with Meta 185 URLs connected to scams, enabling the platform to take down 20,000 accounts.
The European legislation prohibits or curtails what it deems to be risky usage of artificial intelligence. Banks will be caught in its net if they provide or deploy such AI systems in the EU.
The U.S. card brands plan to acquire European firms for security and subscription payments, while Bank of America seeks new markets for its virtual B2B business and JPMorgan Chase's blockchain unit gains ground.
As part of a wide-ranging speech on community bank oversight, the Federal Reserve governor said business models should determine regulatory scrutiny rather than asset size.
New Canaan-based Bankwell's digital solution relies on software designed by Lendio to compress the application-to-funding interval and appeal to speed-conscious small business owners
The state's ill-conceived law banning interchange fees on sales tax and gratuities will be burdensome and expensive to implement and could portend a patchwork of state-level copycat legislation that would balkanize the payments system.
Marc Rowan said he doesn't see a reason for the Federal Reserve to keep cutting interest rates to stimulate the U.S. economy.
The Miami-area bank long ago exited New York and has plans to leave Texas, as CEO Jerry Plush expands its footprint in the Sunshine State. The shift comes as the bank, which competes in Florida with many out-of-state banks, is set to cross $10 billion of assets.
The top five credit unions have combined first mortgage loans and lines of credit of more than $104 billion as of June 30.
In their only vice presidential debate, Democratic vice presidential nominee and Minnesota Gov. Tim Walz talked at length about how housing should not be considered a "commodity," while Republican vice presidential nominee Sen. J.D. Vance, R-Ohio, tied housing shortages to immigration.
The Federal Reserve has lifted a 2013 order relating to anti-money-laundering compliance issues, including in the megabank's now-defunct Banamex USA unit.
The payment protocol, years in the making, includes more information for transactions, aiding real-time processing, international commerce, risk management and overall accuracy. But it also requires a lot of work.
Password requirements are often needlessly complex, according to the government's standards-setting body, which can undermine cybersecurity.
Multiple lenders recruited and promoted from within to fill leadership posts. Orrstown Financial Services disclosed the retirement of its planned CEO successor.
The Consumer Financial Protection Bureau issued an advisory opinion warning to debt collectors that they cannot rely only on information from a medical provider to collect a debt.
Federal Reserve Gov. Lisa Cook called for weighing the costs and benefits of artificial intelligence, flagged bias and fraud as areas of concern.
The Federal Reserve's apparent unwillingness to disclose volumetric details about banks' use of its proprietary faster payments network suggests the central bank is hiding something. That something could be the slow death of faster payments as the new normal.
The Federal Housing Finance Agency has proposed a tweak to capital rules that would give the Federal Home Loan Banks flexibility to manage liquidity during times of stress.
The Chicago-based bank said it would acquire First Security Bancorp in Elmwood Park. The transaction would push it close to $10 billion of assets.
Bank of Nova Scotia shuffled the leadership of its capital-markets business as it looks to increase its presence in the United States.
The new real-time payments system is being optimized for speed, not necessarily security, requiring the banks participating in the program to exercise a heightened level of vigilance.
The peak level of daylight overdrafts has diverged from the average level, which is usually a warning sign of reserve scarcity. This time it may be different.
The commercial bank team worked together to grow the bank's commercial business during a challenging year.
By collaborating across business lines, the enterprise payments team has been able to quickly share innovations and lessons learned from across the bank.
Zions Bancorp.'s core systems team has spent more than a decade transforming the digital system that acts as the hub for all deposit and loan accounts at the bank.
The scuttled acquisition deal with TD Bank challenged the executive management team at First Horizon to come up with a plan to calm investors' and customers' nerves.
When BMO acquired Bank of the West, BMO's integration team was tasked with completing more than 1,500 requirements to unify hundreds of systems, including products, services, technology and processes.
Banks in the hurricane's path are focused on finding employees and restarting operations. Those that do business in Western North Carolina are facing an especially grueling recovery.
Digital Federal Credit Union and First Tech Federal Credit Union, among the largest in the country, originated from technology companies.
Federal Reserve chair Jerome Powell flagged a recent upward revision to income and savings data as a sign of economic strength. He said the information could factor into the central bank's monetary policy discourse during the Fed's next interest rate meeting in November.
Travis Hill says holistic metrics for assessing bank mergers introduce unnecessary unpredictability and deviate from established measures of competition. Hill also provides insight on the status of the stalled Basel endgame proposal.
A vetoed bill would have forced several restrictions on the largest AI model providers, including an ability to instantly shut their models down. A new version could restrict the riskiest uses of AI, such as for loan and hiring decisions.
Citigroup, First National Bank and Marqeta headlined some of the biggest changes in executive leadership in the banking, fintech and payments industries.
In September's roundup of top tech news: Banks and credit unions continue to shift away from banking-as-a-service, Donald Trump announces planned launch of World Liberty Financial cryptocurrency firm and more.
In September's roundup of top banking news: Check fraud goes viral at JPMorgan Chase, Truist Financial resets its tangible common equity target, Wells Fargo faces new AML woes and more.
Instant payment adoption in the U.S. is growing but still trails countries such as Brazil and India. Generative artificial intelligence could be the key to help financial institutions accelerate payment velocity.
An American Bankers Association panel of forecasters predicted slower growth, but it said the U.S. economy would likely avoid a recession, sparing lenders deep credit quality woes.
Federal regulators have rewritten the rules for bank mergers in a way that will discourage the kinds of deals necessary to preserve healthy regional banks.
The National Community Reinvestment Coalition and four fintechs want the agencies to act on the White House's executive order on AI with guidance on beneficial applications of machine learning.
The Consumer Financial Protection Bureau's open banking rule is supposed to put small banks on a more even footing with their larger rivals. But PNC CEO Bill Demchak says larger banks' advantages in tech and economies of scale will win the day.
As a public company, the neobank would have the capital support to keep growing quickly. It would also have to rein in costs and show a profit.
First Republic's failure last year left its wine bankers available for poaching. The group joined Umpqua Bank, whose expansion in the wine business comes at a tricky time for the industry.
A recent deal with a gourmet cookie franchise highlights the business that Ogden-based TAB Bank has built lending to companies other banks shy away from.
As the company bolsters artificial intelligence-powered point of sale and battles other fintechs and the card networks, getting a boost with distribution has become a major priority.
House Republicans grilled a company exec about its widespread outage, but some including Mark Green (R-Tenn.) thanked the company for its response.
The Federal Housing Finance Agency issued guidance to ensure the Federal Home Loan Banks are lending based on the credit worthiness of the member bank, not solely on the quality of the collateral.
Blue Hill Advisors and former Bank of Hawaii CEO Landon up their per-share cash offer to buy Territorial Bancorp; Montreal-based payments firm Lightspeed Commerce puts itself on the market; Societe Generale hires ex-UBS banker Jansen as the bank's West Coast co-head; and more in this week's banking news roundup.
Top banking trades have thrown their support behind the central bank's argument that it has discretion over access to its payments systems. Custodia is seeking to appeal a lower court ruling that affirmed that discretion.
If the government forces the card giant to reduce control over security gateways, firms that sell debit processing and adjacent payment tools to banks such as FIS and Fiserv could cash in.
The Federal Deposit Insurance Corp.'s proposed rule on brokered deposits would be a step backwards for the agency and the industry it regulates.
Democratic Gov. Gavin Newsom signed various measures designed to bolster consumer protection rules. The bills target several issues that have also been percolating at the federal level.
The company has signed an agreement to sell Continental Finance its entire card portfolio.
Interchange fees and financial incentives for merchants, banks and mobile wallets could come under pressure if the government forces the card brand to alter its policies.
Three of the companies that were part of the FTC's sweep, Operation AI Comply, charged consumers to open online storefronts that generated little money compared to what was promised.
Dealmakers say the Federal Reserve's decision to reduce interest rates this month will lower borrowing costs and support banks' credit quality, making it easier for buyers to assess sellers' balance sheets and agree on sale terms.
The San Francisco-based bank has submitted a third-party review of its risk and control overhauls for the central bank's analysis and sign-off, according to people familiar with the matter.
Federal Reserve Vice Chair Michael Barr announced upcoming regulations requiring large banks to preposition collateral at the Fed's discount window and maintain minimum reserves based on uninsured deposit levels.
The workforce management platform and payment company launched a card to pay corporate expenses, an option that the country's large banks have mostly avoided.
Goldman Sachs Group Inc.'s Luke Gillam and Bank of America Corp.'s Murad Khaled, set to join AlbaCore Capital and Apollo Global Management, are the latest in a growing list of top bankers to make the leap.
The trucking and transportation industry is highly fragmented with hundreds of thousands of participants and different processing systems. The $1 trillion in revenue has drawn processors and card companies armed with new tech.
The combined bank would have $150 million in assets, and would offer better service and more convenience, according to Pulaski Savings Bank and Mutual Federal Bank.
The sale of the $318 million-asset portfolio comes five weeks after the Greenville, South Carolina-based company agreed to sell its investment advisory unit.
The Federal Reserve's independence in setting monetary policy is critical to global confidence in U.S. markets and the dollar's status as reserve currency of choice. Making those functions constitutionally separate from the executive branch is the best way to ensure that independence.
Acting Comptroller of the Currency Michael Hsu called for a more risk-based approach to supervision to prioritize pressing issues and improve agility in monitoring large banks.
People filmed themselves depositing bad checks, then quickly transferring or withdrawing the funds. Then they shared screenshots of their negative balances.
Credit card company is seeking to secure online payments using tokens based on consumers' biometric information.
Lenders across the country selected new executives late in the summer, as did Virginia's community bank advocacy group.
As more women generate and steward great wealth, they must also strive to develop and maintain financial wellness. The wealth management industry has a vital role to play in helping dynamic women on their journey.
Northwest Federal Credit Union in Herndon, Virginia, will follow FedEx as stadium-name partner for the Washington Commanders, gaining branding rights for which the logistics giant was paying nearly $8 million annually.
Cannabis is becoming a big business in the U.S., but companies in the field still struggle to find financing. A broadly accepted way of assessing their creditworthiness would be a huge help.
Melody Taylor, the executive director of the Property Appraisal and Valuation Equity task force, said the interagency group went above and beyond expectations. She also defended it against common attacks from working appraisers.
The company's software helps financial institutions convert PDFs into portable financial data formats, and scans PDFs for signs of fraud.
Trimont CEO Bill Sexton acknowledges that a "daunting" volume of commercial real estate loans need to be refinanced in the next few years. But he says nonbank lenders are well equipped to provide financing that will allow troubled buildings to be reimagined.
In August's roundup of top tech news: Banks and retailers wrestle with the unseen consequences of artificial intelligence, Mastercard lays off roughly 3% of its workforce and more.
The payments platform is preparing for expansion to a market that has a fast-growing real-time transaction rail, making the country a hot spot for international investment.
In August's roundup of top banking news: The impact of National Public Data's breach on banks, USAA agrees to $64 million settlement in overcharging case and more.
City National Bank plans a new branch in California that fulfills one of its settlement obligations with the DOJ; Fiserv and PayPal expand their tech collaboration; Banc of California's Monica Sparks steps down; and more in this week's banking news roundup.
Truist, TAB Bank and MoneyGram headlined some of the biggest changes in executive leadership in the banking, fintech and payments industries.
It's unclear what will happen when the Fed starts cutting interest rates, but community banks will be there to support their customers no matter what the economy looks like.
The Federal Reserve's preferred measure of inflation held steady at 2.6% for the third month in a row, a positive reading that increases the odds of a September rate cut.
The Toronto-based bank also said that it expects a "global resolution" of investigations by U.S. authorities to be finalized by the end of the year.
The Salt Lake City bank recently completed what was arguably the first successful large-scale U.S. bank core transformation from an international core provider. Few banks are following in its footsteps.
Industry Bancshares got into a deep hole after rising interest rates tanked the value of its sizable bond portfolio. Now the Texas community bank is expecting a $195 million capital infusion and taking steps to start relying more on revenue from loans.
The Dutch processor will add checkout tech through the collaboration; the e-commerce retailer may launch a separate payments app in India.
The Ames-based Ames National Corp. has watched its profits shrink over the past two years amid increased funding costs and stiff competition for deposits.
A coalition of financial industry groups is calling on the Federal Deposit Insurance Corp. to provide more data and extend the comment period on proposed brokered deposit restrictions, warning the changes could disrupt banking practices and harm consumers.
New standards forwarded by the Public Company Accounting Oversight Board and approved by the Securities and Exchange Commission bolster auditor responsibilities and introduce enhanced technology use, impacting over 350 publicly traded banks.
"Fed watchers will be parsing Powell's comments for signs that a 50bp rate cut is on the table for September," noted Lauren Saidel-Baker, an economist with ITR Economics. "However, the notoriously tight-lipped chair is unlikely to confirm this, making a 25bp cut the most likely outcome."
Toronto-Dominion Bank's expensive foray into the U.S. was supposed to supercharge its growth. Instead, it's become a drag on profitability and badly dented the lender's reputation.
A representative of America's Credit Unions takes issue with a recent article suggesting that credit union commercial lending is excessively risky.
Mehrsa Baradaran's new book "The Quiet Coup: Neoliberalism and the Looting of America" ties together economic history, an expertise in banking regulation and the perspective of someone who's both watched a country be torn apart by extremism and been inside the American political machine.
The North Carolina-based bank doubled in size in 2022 and again last year, when it acquired the failed Silicon Valley Bank. It has used consistency to outperform peers.
Vice Chair for Supervision Michael Barr says generative AI could present financial-stability risks if certain models are used ubiquitously.
The industry-led legal challenge to new anti-redlining rules is opposed by some banks and consumer protection groups, who say the changes are necessary.
A report from the Office of Inspector General disclosed that the Federal Housing Finance Agency issued enforcement actions against two Home Loan banks.
Federal Reserve Gov. Michelle Bowman said she has concerns about an uptick in inflation and will need to see more positive data before supporting an interest rate cut.
California has a pending law that would hold banks liable for three times the amount of a loss if they had reason to suspect financial exploitation of an older customer and did nothing about it.
The banking giant's sale of the non-agency, third-party portion of its commercial servicing business will boost the buyer's position in the securitized market.
The military-focused company, which operates an insurer and a $111.7 billion-asset bank, has tangled with regulators during Wayne Peacock's tenure. He will retire in the first half of 2025.
Four companies are fighting CFPB enforcement actions by claiming the agency cannot be funded by the Federal Reserve, which has not been profitable since 2022. The consumer bureau calls the new legal theory "meritless."
Even as quantum computers still can't break encryption, the banking industry has been preparing for more than a year to start switching to post-quantum cryptography.
The job reductions come as the card network focuses on emerging markets, artificial intelligence and other nascent technology over transaction volume.
Royal Bank of Canada's onetime chief financial officer was allegedly in a relationship with an executive in the bank's corporate treasury group for more than a decade. A court filing offers a remarkably detailed look at how the bank alleges it played out.
U.S. Eagle Federal Credit Union said it plans to acquire Southwest Capital Bank in a transaction slated to close next year. It would help the buyer expand its cannabis banking operation.
Federal Reserve Gov. Christopher Waller says the central bank is tracking research on financial stability risks related to payments, as well as blockchain and crypto developments.
It has never been more important for banks, particularly those over $10 billion of assets, to establish ironclad data quality, governance and control standards. The failure to do so will have cascading negative consequences.
Lorch started as the marketing director at First Internet Bank, the first online-only bank, at its launch. Few Americans had internet access so it wasn't a sure bet the bank would survive. She's still there, now as the president.
While financial institutions continue to recover from the widespread tech disruption, executives are asking what effective fix-it plans might look like during future events.
Federal Reserve Chair Jerome Powell recently attended a closed-door meeting with a group of big-bank CEOs, encouraging them to work with the Fed to avoid a years-long legal battle over the Biden administration's landmark capital proposal.
The planned Bay State deal comes two months after the Minneapolis-based Thrivent said it plans to merge a credit union it controls into a new industrial bank.
The once-worsening trend of consumers struggling to pay their credit card bills keeps stabilizing, new data from card issuers showed this week. The improved picture comes amid other signs that consumers aren't slowing their spending.
Vice President Kamala Harris outlined a raft of populist economic proposals in her first major economic speech since securing the Democratic presidential nomination, including some aimed at lowering housing costs and boosting supply.
Nonbanks that rely on sponsor banks to underpin their financial services may assume that "going direct" is safer after the Synapse bankruptcy. But banking-as-a-service middleware has its merits.
Regions Bank hires next corporate banking group leader from within; Detroit CU names its first-ever woman CEO; United Community raises its quarterly dividend; and more in this week's banking news roundup.
The Swedish institution is adding savings accounts to its signature buy now/pay later service as it plots an IPO. Analysts say it will be a struggle to go against U.S. institutions.
An amicus brief filed in a lawsuit challenging newly finalized implementing regulations for the Community Reinvestment Act argues that the court was chosen because plaintiffs believe the court is more likely to rule in their favor.
The ability to make cash transactions is vital to some Americans, and when technology fails us, it can be a lifeline for all Americans. We need to preserve it.
Berkshire Hathaway trimmed positions in Capital One and Bank of America in the last several months, public filings show.
Acima offers lease-to-own plans on consumer items, but the Consumer Financial Protection Bureau and New York officials are calling those plans credit. The battles, playing out in separate courts, could trigger more expansive protections for customers.
The personal data collection company, which offers its database for background check and private investigation services, acknowledged the giant breach.
Currently sitting at 2,500, the in-store branch count appears fated to continue dropping, as customers opt for digital channels and banks shy away from models that emphasize overdraft
NCR Atleos and Diebold Nixforf are leveraging the rise of branchless financial institutions and pressure on traditional banks to maintain access to paper.
Robert M. Kowalski was convicted for his role in embezzling tens of millions of dollars from Washington Federal Bank for Savings, which led to the bank's failure in 2017.
The American Bankers Association and the Illinois Bankers Association, among other groups, are challenging an Illinois law barring swipe fees for taxes and tips should be preempted by federal law.
Sixth Street is working with co-investor Davidson Kempner Capital Management on the deal to acquire UBS's Select Portfolio Servicing.
Heritage Bancshares Group entered into a written agreement with the Federal Reserve, promising to address issues with cash flow and capital management.
Klarna Bank AB is adding retail-banking services in the US and across much of Europe, expanding beyond its signature buy-now, pay-later offering as the fintech prepares for an initial public offering.
Senate Majority Leader Chuck Schumer, D-N.Y., said the upper chamber could pass a bill laying out the regulatory framework for cryptocurrency this year, though few details were offered on how such a bill would cross the finish line.
Political contribution data shows that individual bankers have donated more to the Biden/Harris ticket than Trump in 2024, but overall have contributed more to Republicans than Democrats this cycle.
The overall size of the combined entity is trivial compared to industry behemoths. It is evident the benefits to consumers from the Capital One-Discover merger dramatically exceed the speculated harms that caution against it.
Borrowing costs have fallen to their lowest level in more than a year as inflation metrics drop to 2021 levels, seemingly vindicating the Federal Reserve's decision to maintain their restrictive monetary policy.
Chatbots and other non-human service options got lower scores in J.D. Power's annual survey on credit card satisfaction, despite years of shifting from call-center agents to software to address client problems.
A Northwest credit union announced plans this week to buy a community bank, lifting the 2024 total of such deals to 13 and putting the year on track to set a record. The all-time annual high of 16 was set in 2022.
The card brand adds to partnerships that enable data sharing and cross-selling; the U.K. bank is lowering fees based on clients meeting metrics for sustainability; and more.
Krish Swamy, Dan Jermyn and others on a just-released AI 100 list say they expect investment in AI to keep increasing.
The Chicago-area bank closed the fifth-largest deal announced this year in a matter of months. It may bode well for M&A, as several big transactions have been announced in 2024.
Plans for Specialized Portfolio Servicing's sale resolves questions about it that arose when UBS bought the troubled Credit Suisse last year.
Thanh Roettele will help guide the Canadian bank's growth in the mortgage warehouse space in one of its latest moves aimed at U.S. market growth.
The change will allow the Wall Street firm's material risk takers to now earn a bonus that's as much as six times their base salary.
The dark secret about credit unions is that while rules have changed to allow them to make more commercial loans, their ability to underwrite those loans at scale is lacking. When the credit cycle turns, there's going to be a reckoning.
The beleaguered Long Island bank saw its stock price rally after investors exchanged their preferred shares for common stock.
Brian Niccol's record as CEO of Chipotle will be tested as he tries to to keep the coffee chain competitive with rival digital wallets.
The National Institute of Standards and Technology finalized long-awaited standards for encryption algorithms that can withstand quantum computers.
A new government effort intends to tackle unfriendly consumer practices. The CFPB is tasked with addressing chatbot misuse and customer service "doom loops."
Some of the challenges Bank of Guam faces are unique. But its search for vendors and local talent will feel familiar to community banks across the U.S.
Keeping control of the Senate in 2024 was always a tall order for Democrats. Republicans thus far are on track to eke out a narrow majority — an outcome that would limit a prospective Harris administration's maneuverability in nominations and legislation.
Sellers of contract-for-deed home financing deals must provide disclosures, financing terms and assess a borrower's ability to repay, the CFPB said in an advisory opinion.
Though it hasn't set a timeline, Oxford Bank, based north of the Motor City, is weighing a southward expansion that would add all the Detroit metropolitan area to its footprint.
The parent company of Fulton Bank announced the creation of three new management roles and promoted existing employees into those jobs. The changes follow the recent hiring of an outsider to be CFO.
The Bank of Japan's interest rate hike and plan for quantitative tightening have international markets scrambling to adjust to a new reality in which carry trade credit is tighter and a U.S. downturn is somewhat more likely.
Governor Tim Walz, who Vice President Kamala Harris selected as her running mate Tuesday, has a slight but progressive record on financial policy, suggesting a potential leftward shift in banking policy in a prospective Harris administration.
The Long Island-based thrift, long associated with multifamily and CRE lending, saw business lending spike the past year as it onboarded 15 banking teams. Other banks that did significant hiring have also reported more deposits and wider margins.
The Dallas-based bank is the latest bank to announce plans for a direct lending rollout using non-bank capital.
During a market rally following Monday's correction, MoneyLion was left behind despite beating analyst expectations and issuing a positive outlook.
President Joe Biden's administration and Senate Democrats are ramping up pressure on the Federal Home Loan Bank system to pump more money into solving the nation's housing crisis.
Jack Poulsen, the former president of Ericson State Bank in Nebraska, was sentenced to 18 months in prison for bank fraud involving loans to a relative that led to the rural bank's collapse.
High borrowing costs led to fewer mortgage originations in the second quarter, according to the Federal Reserve Bank of New York's Quarterly Report on Household Debt and Credit released Tuesday.
The proposed settlement would resolve allegations that USAA violated laws protecting those in the military from excessive interest rates. The bank said it "strongly disagrees" with the allegations.
The resurgence of the syndicated loan market signals a pendulum swing back to greater reliance by debt issuers on traditional bank financing.
The bank technology company says client wins are coming in at a fast pace and are driving financial performance.
The guidance largely matches last summer's proposal, with clarifications around least-cost determinations, foreign bank resolutions and resolution strategies. Regulators also gave banks more time to file their living wills under the new framework.
Judge Martin Glenn of the Federal Bankruptcy Court of the Southern District of New York greenlighted SVB Financial's bankruptcy plan Monday, but $1.93 billion in FDIC-held deposits remain contested pending further litigation.
Monday's market decline has sparked concerns of an economic downturn, calling attention to installment lenders that market to distressed consumers.
A long-time industry observer and bank regulation expert spells out the steps banks should take to ensure their fintech relationships are safe.
New executives were lined up for lenders across the country, including Fremont Bank in California.
Sen. Jack Reed, D-R.I., asked the Federal Reserve to require public reporting of synthetic risk transfers — also known as credit risk transfers, or CRTs — through bank call reports and systemic risk reports.
Ent Credit Union in Colorado is using automated customer relationship management software from Creatio to help improve its employee-facing data management systems without the need for computer programmers.
Capital One's proposed deal to acquire Discover is being viewed by progressives as a test of how skeptical the administration really is about big bank mergers, while Republican lawmakers mostly support the deal.
The Hammond, Louisiana, company, which announced changes to its business strategy, cut 71 jobs and reduced its dividend to 8 cents per share.
Instances of check fraud have ballooned in recent years, plaguing banks, and they don't seem to be slowing down. Probably the best thing regulators can do to combat that fraud is to develop an equally inexpensive alternative that is more secure, and FedNow might be that service.
The Federal Deposit Insurance Corp. issued proposals Tuesday that would reverse Trump-era rules on brokered deposits and tighten the agency's guidelines for approving applications to incorporate new industrial loan companies.
The $330 million transaction announced late Monday would give the Jasper-based company a foothold in fast-growing Columbus, as well as in Cincinnati.
Election speculation about policy change at Fannie Mae has boosted its stock slightly this year. It's also profitable, but there's much more to consider.
Changes to the regulatory regime surrounding the Federal Home Loan banks should be carefully calibrated so as to do no damage to their successful support for housing and the provision of liquidity to members.
CEO Alex Chriss contends the payments company can get a boost from greater access to mobile payment technology while competing against the technology giant on other fronts.
The buyer said the all-stock deal to buy The First Bancshares would create a combined bank with $25 billion of assets.
Sen. Cynthia Lummis announced a forthcoming bill that would require the government to hold 5% of the global bitcoin supply. Presidential candidates Donald Trump and Robert F. Kennedy Jr. have also called for strategic holdings of the cryptocurrency.
The Wilmington, North Carolina-based institution is pursuing a model that cuts out the middleman and embeds its services directly into fintech partners' platforms.
The Wall Street banks are reviving dormant formats to raise capital with a lot more duration than usual, playing into bets that the Federal Reserve is on the cusp of an easing cycle.
Investing in data governance, compliance and staffing appropriately can help manage the risks of offering banking as a service, experts say.
Contingency planning always seems theoretical...until it isn't. Planning for the unexpected can prepare you to serve customers well in times of crisis.
New funding would increase valuations for both firms, reversing a slump that has impacted the entire industry for the past two years.
Each year, in advance of our Most Powerful Women in Banking and Finance awards, American Banker puts together a list of 15 women who are rising stars at their banks. The honorees, all women 40 years old and younger, are nominated by an executive at their institution who believes that she has the potential to ascend to the C-suite.
As a managing director within Citi Investment Management, a division that sits within wealth, White is playing an integral part in reshaping that line of business.
Wech worked her way up over the past 16 years from a trainee through the retail division, becoming a branch manager, the manager of multiple locations, a team leader and now a regional head for business banking.
Shalishali joined the $59.7 billion-asset bank through an early talent program, which exposed her to different aspects of banking. She ended up starting off as a credit analyst before taking on other roles, such as a private wealth advisor and a commercial banker.
The biggest initial public offering of 2023 — chipmaker ARM's September debut on Nasdaq, which valued the U.K.-based company at $54.5 billion — marked a memorable day for investment banker Jessica Payne, who advised ARM's Japanese owner, Softbank, on the deal.
With 16 years at the company, Niemczyk is an Ally lifer. She is currently a senior director of invest and deposits business operations and analytics at the bank.
Melhaoui leads a team of 11 and is responsible for overseeing the bank's liquidity and interest rate risk for the U.S, Canada, Mexico, Brazil, Colombia and Argentina.
Jagadish leads strategy and execution of digital and mobile capabilities for all customer-facing digital platforms for TD Bank in the U.S., as well as commercial bank products and services.
Flanders started her banking career at First Horizon as an intern. She worked in the bank's treasury division for eight years and is now its investor relations officer.
Arrington, who has an MBA and a law degree with a concentration in financial transactions, is the chief risk officer for the $753 million-asset bank.
Dupuis started in banking as a high schooler. She is now the retail banking director at $16.4 billion-asset First United.
In a new survey of bank executives from IntraFi, 90% of respondents said instances of check fraud have increased in recent years and half want law enforcement to make check fraud a bigger priority to stop criminals from stealing checks in the mail.
The store-branded credit card company revised its revenue guidance upward on the assumption that the CFPB's late-fee cap won't take effect before 2025. Still, Bread is moving ahead with plans to make up some of the revenue that it stands to lose from the contested rule.
Financial institutions that entered the space before regulatory oversight intensified need to calculate whether the price of talent, risk planning, and technology is worth the return.
Fulton Financial taps Valley National's Richard Kraemer as its new CFO; UBS' veteran private banker Jenny Su has left the firm; Bank of America names Kevin Brunner head of global technology, media and telecommunications investment banking; and more in this week's banking news roundup.
First Foundation in Dallas recently got a $228 million capital injection led by Fortress Investment Group. Now it's announced plans to pivot away from its heavy focus on multifamily loans, which lost value as interest rates rose.
Fostering financial well-being among the country's fastest-growing demographic group is essential to the future of the American economy. And, not incidentally, it's also good for business.
Ending a five-year M&A hiatus, the Wheeling, West Virginia-based company has agreed to pay $959 million in stock for Premier Financial in Defiance, Ohio.
As a senator, the likely Democratic nominee for President championed an agency that did early work on payment technology, setting the stage for a central bank digital currency.
The trend of credit unions buying banks is a lightning rod for controversy in the banking industry. Despite this, such mergers are increasingly common.
Despite being a top concern for a wide swath of voters, housing affordability has largely been absent from presidential politics.
While the federal banking agencies are not changing any current rules, they issued a joint statement Thursday cautioning banks about risks in third-party deposit partnerships. They are also seeking public input on bank-fintech partnerships more generally.
The San Antonio-based bank is in the midst of a yearslong expansion effort spanning Houston, Dallas and Austin — all of which are fueling loan growth.
Project Fortress encompasses four initiatives Deputy Secretary Wally Adeyemo hopes will "improve the security and resilience of the financial services sector."
ChoiceOne Financial Services would pay about $180 million to acquire Fentura Financial in a bid to expand in Detroit's suburbs. The deal would create a bank with more than $4 billion of assets.
But following the gross domestic product and personal consumption expenditures reports, Treasury yields and mortgage rates fell.
The Raleigh, North Carolina-based bank grew loans and deposits in the second quarter as it won back business from former customers of the failed Silicon Valley Bank. First Citizens bought the remains of SVB last spring.
Third-party origination operations are also going to Mr. Cooper in the $1.4 billion deal, in which the seller cited interest in improving its capital position.
The siren song of greater regulatory uniformity will lead the industry to disaster, as the kind of innovation that benefits consumers is stifled.
The big box retailer's move comes amid a broader decline for the traditional payment option.
New York Community Bancorp reported a net loss of $323 million for the second quarter as it further boosted its provision for credit losses and recorded a steep increase in net charge-offs. The parent company of Flagstar Bank also plans to sell its residential mortgage servicing business to Mr. Cooper.
The $72.8 billion-asset bank lowered its guidance for net interest income, explaining that while business prospects on the island are relatively rosy, its stateside opportunities for loan growth look weaker.
The embattled Long Island-based bank announced the hiring of nine new senior executives. Most of them have ties to CEO Joseph Otting, who previously held the top job at the OCC and OneWest Bank.
Federal Deposit Insurance Corp. Vice Chair Travis Hill has called for a full reproposal of the Basel III endgame capital standards, emphasizing the need for joint advancement by all three major federal banking agencies and an additional comment period for industry feedback.
The bank is developing algorithmic models that will be ready to take advantage of quantum computers when they become powerful and reliable enough to use. It's also taking steps to defend itself against the day cybercriminals can harness quantum computing to break the encryption protocols everyone uses.
The $73.5 million all-stock deal, slated to close early in 2025, would create a bank with more than $3 billion of assets.
The Spanish bank recorded its best efficiency ratio in 15 years, Chairwoman Ana Botin said in its quarterly earnings statement.
A rising number of check fraud cases involving counterfeit checks is compounding the already-serious problem of fraud in one of the oldest payment methods widely available.
The week of the Republican National Convention brought with it some of the biggest political moments the country has seen for decades, some of which center on the rise of economic populism in the Republican party. Here's some of the biggest moments that matter for bankers.
The guidance is largely unchanged from what the agencies proposed last year. It directs institutions to craft policies that consider a wide array of potential shortcomings.
The $22 billion-dollar earned wage access industry is vigorously opposing the Consumer Financial Protection Bureau's plan to classify paycheck advances as consumer loans requiring disclosures of fees and costs, and says it will fight the rule in court.
The Dallas-based company, whose earnings per share fell short of consensus by 6 cents, lowered its revenue forecast and raised its expense outlook. Its stock price fell more than 8% on Thursday.
The credit card company sold its student loan business, which long drew the ire of regulators. It also set aside substantial funds to cover looming regulatory penalties.
The bank plans to turn away transactions for apps like Afterpay, Affirm, Klarna and others. Its move comes as these third parties face increasing scrutiny from regulators and industrywide concerns over risk.
FactSet, Brightwave and Bloomberg are among those offering generative AI models that do research legwork. But Wall Street firms have lately been taking a harder look at the cost and return of generative AI.
Two recent Supreme Court rulings, Loper Bright and Cantero, are likely to upend the Office of the Comptroller of the Currency's long-standing approach to federal preemption of state banking laws, experts say.
Even though the 30-year fixed rate mortgage is at its lowest level since mid-March, consumers are being cautious in returning to the market, Freddie Mac said.
The Georgia-based bank recorded a $257 million hit after unloading a bundle of securities that it expects to redeploy into higher-yielding assets. It also forecast a resumption of loan growth in the second half of the year.
Reps. Patrick McHenry, R-N.C., and Maxine Waters, D-Calif., who run the House Financial Services Committee, today released their report on artificial intelligence in the financial industry.
For at least the fifth consecutive quarter, the Providence, Rhode Island, company increased its allowance for credit losses on general office loans, which continue to be a problem area for banks.
The Detroit-based auto lender has been dealing with an imbalance in deposit costs and loan yield since rates rapidly rose. Now, the bank's fixed-rate loans from before are maturing.
The credit card company is seeing fewer customers fall behind on their payments. But with lower-income consumers still being pinched by inflation, Synchrony isn't loosening its lending standards.
An analysis of 13 comment letters from the financial industry highlights the most important changes banks want to see to rules proposed by CISA.
Acting Comptroller of the Currency Michael Hsu said the agency OCC will review its 2020 interpretation of preemption under the Dodd-Frank Act and explore more direct engagement, tailored federal regulation and supervision of nonbank fintechs.
The judge in the case said the former associate needed to go to prison in order to send a message to others in the financial industry.
Federal Reserve Gov. Christopher Waller said that economic data seems to indicate that the economy will achieve a so-called "soft landing" but said he would like to see additional data before the central bank cuts interest rates.
Morgan Stanley became the latest big Wall Street bank to tap the U.S. investment-grade market Wednesday after reporting earnings, as strong investor demand helps lenders borrow at lower yields than would have been possible at the start of the month.
The final rule governing the use of automated valuation models for home assessments is substantially similar to the initial proposal made last June.
The credit card giant says its proposed acquisition of Discover would facilitate a bevy of community development activity and philanthropy. But some public advocacy groups are skeptical.
Congress needs to take immediate action to reform policies that foster this trend and ultimately subsidize banking consolidation on Main Street, writes Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America.
CTrust is providing scores specific to the legal weed business, an industry that poses a lot of challenges and opportunities for banks and other lenders.
The Chinese technology giant is partnering with BNP Paribas to reach more merchants; Sequoia makes an investment offer that could boost confidence in Stripe; and more.
The Minneapolis-based company reported an 18% increase in net income thanks largely to slimmed-down operating expenses. It notched modest increases in loans and deposits, while asset quality issues remained manageable.
Federal Reserve Board Gov. Adriana Kugler said traditional datasets are slow and sometimes outdated. She pointed to housing services as a price category that can benefit from private data.
Banks reported that they have far more protections against fraud in digital channels versus branches or call centers, according to survey research.
Federal Reserve Chair Jerome Powell's term expires in 2026, and the chances are good that he will ride off into the sunset. But there is a path for him to be renominated for a third term, and he's defied long political odds before.
Two Northeast banks will get new CFOs next month. Webster Financial hired Neal Holland, the former CFO of the failed First Republic Bank, and Eastern Bankshares hired David Rosato, who left Berkshire Hills Bancorp last month.
Should senior Senate Banking Committee member Bob Menendez, D-N.J., resign or be expelled from the Senate, it could derail key nominations — including that of Christy Goldsmith Romero for Federal Deposit Insurance Corp. chair.
Early Warning Services CEO Cameron Fowler will join bank executives at an upcoming hearing in the Senate Permanent Subcommittee on Investigations to discuss fraud on the Zelle payments network.
The tech giant is enabling users to pay by holding smartphones together, potentially cutting into the market for Zelle, PayPal and Venmo.
In recent surveys conducted by Javelin Strategy & Research and Insider Intelligence, consumers gave the bank's app high marks. Many small-seeming improvements explain the ascent.
The government-backed instant processing network has been live only since the summer of 2023, but it's already indirectly boosting usage at an unrelated bank-led rail from The Clearing House.
The basics of good banking — a strong balance sheet, customer service and solid risk analysis — will always be important. But in the future, technological competence will be the difference between the sector's winners and losers.
Goldman's two main businesses — global banking and markets, and asset and wealth management — both recorded year-over-year increases in revenues during the second quarter. "We are pleased with our solid second quarter results," CEO David Solomon said Monday in a press release.
In this edition of American Banker's news quiz, catch yourself up on the latest news surrounding Project 2025, Patelco Credit Union's cybersecurity breach, fines against Citigroup and Fifth Third and more.
The discussion will delve into strategies for future-proofing technology investments, focusing on how to extend existing systems to harness the potential of AI while maintaining resilience. Join us to discuss how to evaluate platforms that deliver tangible value in a matter of months, considering factors such as scalability, flexibility, and integration across various business areas.
The megabank is working with the digital lending fintech Numerated to automate transferring and analyzing important financial data from borrowers.
First Internet Bank and Nbkc Bank are among those exploring ways to automate the traditionally manual task of verifying business customers.
Royal Bank of Canada reorganizes its executive leadership ranks; pending startup BankMiami gets approval from Florida's Office of Financial Regulation; Rize Credit Union's Julio Jimenez-Wenz joins Nevada Commission on Minority Affairs; and more.
Fizz offers a card that enables undergrads to slowly build a debt record based on healthy spending habits, providing an alternative as regulators pressure how financial services are marketed to the demographic.
After its planned sale to a larger competitor fell through, the renamed bank plans to expand into new markets, starting with St. Louis.
With Americans suffering from high housing costs and declining supply, we cannot afford to watch a massive government-sponsored enterprise sit on billions in retained earnings.
Each of the megabank's five business lines reported an uptick in profits for the second quarter of 2024. Growth in Citi's banking segment, which includes investment banking, was particularly robust, up 30% year over year, the company said Friday.
Chairman and CEO Jamie Dimon said while the economic outlook is 'benign,' the bank remains 'vigilant about potential tail risks.'
Wells Fargo's rising interest expenses showed little signs of letting up, pinching its net interest income below $12 billion for the first time since 2022.
The New York-based company saw assets under custody and management jump, driving strong increases in both fees and overall revenues for the quarter ending June 30.
As part of the three-year agreement, the group will fund a $1.22 million scholarship fund to recruit minorities into the appraisal profession.
A federal appeals court ruled that the Equal Credit Opportunity Act prohibits not just outright discrimination but also the discouragement of prospective applicants for credit.
The House didn't meet the two-thirds threshold needed to overturn President Joe Biden's veto of a resolution nullifying staff accounting bulletin 121, which requires that banks hold cryptocurrency held in custody on their balance sheet as liabilities.
Evergreen Money offers affluent savers both high returns and ready access to their money. The startup's founder, former PayPal CEO Bill Harris, says that increased regulatory scrutiny of bank-fintech partnerships is a positive development.
The four lawsuits allege that attackers stole members' Social Security numbers, among other data. Patelco has not yet confirmed whether any data was stolen.
Higher funding costs, lower loan demand and the potential for increased credit costs continue to drag on the sector heading into second-quarter earnings season.
President Joe Biden's nominee to lead the Federal Deposit Insurance Corp. signaled openness to withdrawing and resubmitting the Basel III rule.
The American tech giant's agreement to open up to other firms may give other tech firms the chance they need to offer an updated mobile wallet.
The banking industry is using the threat of lawsuits to push regulators toward a less stringent final rule on capital. Those in favor of tougher rules should fight fire with fire.
The top five community banks have combined first mortgage loans of more than $2.8 billion as of March 31, 2024.
A document from the Heritage Foundation, written by some of former President Donald Trump's top economic advisors, could have a large impact on bank oversight, should Trump win the presidential election this year.
The megabank isn't making enough progress in its efforts to improve its risk management systems, according to the Federal Reserve and the Office of the Comptroller of the Currency.
Elizabeth Warren was among those who criticized Dimon for saying that the bank is going to move away from "commitments" toward "aspirations" on climate.
Susser Bank has proved successful attracting business from small and mid-sized companies the past two years. It's hoping a successful capital raise and continued branch expansion can extend the trend.
During his second day of congressional testimony this week, the Federal Reserve chair said the central bank does not have supremacy over other agencies on their joint rulemaking.
GrabrFi, a challenger bank for freelancers outside of the U.S., has found both hurdles and opportunities by working with banking-as-a-service middleware vendors.
The Consumer Financial Protection Bureau has proposed requiring that mortgage servicers exhaust all efforts at assisting struggling borrowers before moving ahead with a foreclosure.
Federal Deposit Insurance Corp. Board Members Jonathan McKernan and Rohit Chopra agreed on the value of clearer bank-fintech guidance to enhance regulatory clarity, foster innovation, and ensure fair competition in the financial services sector.
The card networks extended an agreement to keep interchange the same for cards issued outside of the European Union; meanwhile Ant Group's Alipay adds a number of AI-powered assistants.
Washington policymakers are not adopting policies necessary to keep the U.S. on the cutting edge in payments. Fortunately, the dual banking system offers an alternative path forward.
Republican lawmakers want the Treasury secretary to extend the deadline for U.S. businesses to submit beneficial ownership information to the agency's Financial Crimes Enforcement Network. She emphasized that the agency is focused on penalizing willful non-compliance rather than enforcing 'gotcha' penalties against small businesses.
The ratings firm evaluated 4,100 loans to assess the state of 41 banks' commercial real estate risk. It found that the lenders should be holding, on average, about twice the amount of reserves they currently have for office loans.
The Federal Reserve's top regulator praised industry efforts to expand access to banking services, but warned about financial stability risks.
The Consumer Protections for Artificial Intelligence bill passed in May seeks to enhance consumer protections from the potential biases in AI systems through increased transparency and accountability from developers.
The Federal Reserve chair said there is a consensus within the central bank's Board of Governors for re-proposing its capital rules, but notes that other agencies have not yet signed off on this approach.
The Cincinnati bank has agreed to pay a total of $20 million to settle a lawsuit by the Consumer Financial Protection Bureau over fake bank accounts and to resolve separate violations involving force-placed auto insurance.
Micromanaging the terms under which payment networks are willing to process debit-card transactions is bad for both businesses and consumers. Congress has the power to roll back intrusive regulations.
The financial institution, which downsized earlier this year, is trying to broaden its scope to retain businesses that don't want to use multiple providers.
The Canadian bank has appointed Erin Morrow, who had served as deputy chief compliance officer for about six months, to replace Monica Kowal, who parted with TD July 2. The announcement comes as TD faces questions by U.S. and Canadian regulators about its anti-money-laundering compliance.
The Sacramento-area institution moved quickly and decisively to fill the gap created by the loss of First Republic and Silicon Valley Bank. A first-quarter rise in Bay Area deposits is a sign of bigger gains to come, San Francisco Bay Area President DJ Kurtze says.
The lead lawyer on the case that overturned the decades old doctrine penned an amicus brief arguing that the lower court ruling raises constitutional questions about the Federal Reserve.
Consultants at McKinsey and Accenture are offering to use gen AI to understand legacy software and write new code. Experts say this idea has merit, up to a point.
The agency has proposed a rule that would give it and the Committee on Foreign Investment in the United States broader authority over real estate transactions near military installations in 30 states.
The most important issue on voters' minds is inflation, and the inflation blame game has heated up with the upcoming presidential election. Putting politics aside, an objective economist would blame neither candidate, since the underlying cause of our inflation, like so many other problems today, was COVID-19.
The bank is working with Adyen and Stripe to improve the transaction information that feeds AI-powered payments crime fighting. Can it convince other firms to join?
In this edition of American Banker's news quiz, see if you know the latest updates on JPMorgan Chase's fraud prevention methods, Supreme Court rulings on swipe fees, the woes of former Silvergate Bank executives and more.
The bank acquired these business purpose non-qualified mortgage loans originated by Civic Financial Services in the PacWest Bancorp deal.
Cullen/Frost's CFO is retiring, a top JPMorgan research analyst is leaving, and both UBS and JPMorgan hire tech dealmakers in this week's banking news roundup.
The lawsuit settlement clears a hurdle for the credit card company's deal with Capital One, which has vowed to address Discover's compliance shortcomings. A public hearing on the merger is scheduled for July 19.
Marcus Castilla was recently named director of the Oklahoma bank's digital banking unit for service members; he shares what Roger offers today and some plans for the future.
The central bank also noted that the banking system is sound but faces several challenges. The report precedes Federal Reserve Chair Jerome Powell's upcoming appearances on Capitol Hill.
In June's roundup of top tech news: U.S. Bank partnered with Greenlight to provide financial education resources, ransomware group LockBit released data belonging to Evolve Bank & Trust, banks consider the merits of open-source and closed-source generative AI and more.
The fate of Capital One's acquisition of Discover should be determined based on its own merits and not be maligned for the foibles of other failed banks.
Experts from Tipalti, Tulane, Cigniti and Ingenico discuss what skills will be in demand, and the importance of not being intimidated by the speed of innovation.
Banking experts are divided on how regulators will reshape the capital overhaul and if reported revisions being floated by regulators will meet the banking industry's demands.
Two days after the Fed released the results of its annual stress tests, the nation's eight largest banks all announced plans to supplement their payouts to shareholders. At the same time, most of the banks also said that their capital requirements are expected to rise.
The Tennessee bank is the latest to be punished for lapses in oversight of fintech partners. Unlike most FDIC consent orders, the filing liberally uses the terms "fintech" and "BaaS."
The trade groups said Friday that a proposed rule from CISA would burden firms with overly broad reporting requirements as they scramble to respond to incidents.
New top executives were lined up for lenders across the West and Midwest, including Bank of North Dakota.
Executives from Citi and TDECU teased their plans for digital lending at American Banker's Digital Banking conference this week.
Bloom Credit Union and West Michigan Credit Union aim to join forces; Long Island-based New York Community Bancorp plans a reverse stock split; Providence, Rhode Island-based Citizens Financial hires longtime California banker to lead its middle-market team; and more in this week's banking news roundup.
The company says the FDIC's "pause letters" to banks and denial of Freedom of Information Act requests are illegal.
The Treasury Department's Financial Crimes Enforcement Network issued a proposal mandating banks enhance their anti-money laundering and counterterrorism financing programs, including measures to address fentanyl trafficking and Russian money laundering.
The value-added services unit of Visa, led by longtime Australian bank executive Anthony Cahill, covers nearly 200 global products in five categories, and recently produced a 23% quarterly increase in revenue over the prior year.
The real test of the value of investments in artificial intelligence and other tech upgrades is the generation of measurable value across a bank's lines of business.
Elizabeth Magennis started out as a teller in Brooklyn, New York, and is now the president of the $9.8 billion-asset ConnectOne Bank.
A landmark ruling by the Supreme Court's conservative majority means that defendants will have the right to a jury trial in cases where bank regulators are seeking civil penalties. The consequences for federal banking agencies are expected to be substantial.
All eyes are on the Federal Reserve as the wait for rate cuts continues. Steve Skancke, chief economic advisor at Keel Point, will discuss the Federal Open Market Committee meeting, the Summary of Economic Projections, and Chair Powell's press conference.
Large and regional banks again proved their resiliency in the Fed's annual exams. But analysts noted that a few lenders faced some negative surprises — a development that may scuttle investor hopes for share buybacks by those banks.
VersaBank plans to use the one-branch Stearns Bank Holdingford in Minnesota as a platform to expand a lucrative niche business acquiring loan and lease receivables from point-of-sale lenders.
The Consumer Federation of America and Consumer Reports sent a letter to the Consumer Financial Protection Bureau urging it to require banks to search for less discriminatory models. Later the same day, the CFPB issued a report saying it's doing just that.
Leaders that have created virtual "branches" weighed in at American Banker's Digital Banking conference on how to approach implementation and what results have been like.
But economists seem to differ on what the latest movement in mortgage rates means for the summer home sales business.
The cryptocurrency sector is only the latest in a long line of corporate interests seeking to distort our democracy by converting their financial power into political power.
When TD Bank launched an audio brand identity across its communication channels early this year, the new jingle triggered a surprising reaction from consumers using the firm's ATMs.
Banks and financial institutions face a barrage of lawsuits from consumers alleging they failed to investigate inaccurate information on a credit report. Industry blames the uptick in litigation on social media sites and the proliferation of credit repair companies.
Evolve Bank & Trust acknowledged the ransomware group published customer data from the bank, but the number of affected people remains unclear.
The Federal Reserve attributes the uptick in simulated losses in this year's stress test examination to heightened risks on bank balance sheets and higher expense levels. Credit cards and corporate lending were top areas of concern for the central bank.
Last year, the CFPB referred 18 matters to the Department of Justice and initiated 28 fair lending examinations or targeted reviews, the highest number of such actions by the agency ever.
Darren King, who has been overseeing retail and business banking, will depart from the bank in August, M&T said Wednesday. A company spokesperson cited personal reasons.
The technology company faces fines over potential anti-competition practices; Takis Georgakopoulos is on his way to Fiserv.
Eras come and go, but the ongoing investments in developing, empowering, leading and retaining superior personnel will remain the highest priority of top-performing financial institutions.
By adopting more inclusive lending practices and actively seeking to support minority-owned businesses, banks can help bridge the financing gap that often stifles the growth of these businesses.
Customers caught up in the Synapse bankruptcy are met with deafening silence from Washington as they discover their savings — or what is left of them — are held in accounts that fall between the cracks of the bank regulatory apparatus.
Later this week, the Federal Reserve will release the results of its annual check-up on larger banks' balance sheets. Experts say there are always surprises, but that pending capital rules may have a bigger impact than the stress-test results on banks' dividend and buyback decisions.
A plan reportedly being floated by the Federal Reserve would reduce the top-line capital raise for the biggest banks by as little as 5% — down from 16% in the original proposal from last July.
As many financial institutions around the world prepare to adopt the ISO 20022 standard for sending international payments by March of 2025, experts say banks failing to make timely preparations could risk losing some customers and payments volume.
There were 27 bank acquisitions worth $5.45 billion announced in the second quarter as of mid-June. That was more than the $5.2 billion combined value of deals announced over the previous five quarters.
The former head of Square Banking at Square is one of American Banker's 2024 Most Influential Women in Fintech.
The CEO and founder of SpringFour is one of American Banker's 2024 Most Influential Women in Fintech.
The Co-founder and CEO of Stratyfy is one of American Banker's 2024 Most Influential Women in Fintech.
The chief growth officer at Pagaya is one of American Banker's 2024 Most Influential Women in Fintech.
Klarna is looking to get out of one of its key payments businesses after the financial technology giant found the unit created a conflict of interest with peers like Adyen or Stripe.
The chief information, data and digital officer at Ally Financial is one of American Banker's 2024 Innovators of the Year.
The managing director and head of treasury solutions at Texas Capital Bank is one of American Banker's 2024 Innovators of the Year.
The Consumer Financial Protection Bureau's attacks on credit card reward programs don't square with the fact that the vast majority of consumers are very satisfied with their service.
See how familiar you are with potential changes to the Consumer Financial Protection Bureau's rulemaking ability, the Synapse bankruptcy, industry turnover of chief financial officers and more.
This year Texas banks dominated American Banker's annual list of the top-performing larger community banks. See which institution came in at No. 1 for this asset class.
The CEO and Co-founder of NovoPayment is one of American Banker's 2024 Most Influential Women in Fintech.
The President of the North Americas for Encompass is one of American Banker's 2024 Most Influential Women in Fintech.
The Chief Economist at R3 is one of American Banker's 2024 Most Influential Women in Fintech.
The Division leader for North Latin America and the Caribbean at Mastercard is one of American Banker's 2024 Most Influential Women in Fintech.
Since being tapped to lead the global crypto product team at Visa in June 2019, Sheffield has spearheaded projects like the expansion of the company's stablecoin settlement offerings for merchant acquirers and many others.
Jacobs' work with Midland States Bank has helped save roughly $1.3 million through the use of robotic process automation.
Harris's leadership at Sentilink to help stop fraud at account opening has made him one of American Banker's 2024 Innovators of the Year.
The public will now have an additional two months to weigh in on expanded operating hours for its Fedwire Funds and the National Settlement services.
Zest AI more than doubled its customer base in 2023 and increased its customer base more than 50% yearly over the past four years.
The managing partner at Team8 is one of American Banker's 2024 Most Influential Women in Fintech.
The CEO and co-founder of Hello Alice is one of American Banker's 2024 Most Influential Women in Fintech.
The founder and CEO of Orum is one of American Banker's 2024 Most Influential Women in Fintech.
The chief product officer at NMI is one of American Banker's 2024 Most Influential Women in Fintech.
The chief compliance officer and general counsel at Bluevine is one of American Banker's 2024 Most Influential Women in Fintech.
The co-founder and chief technology officer at Pismo is one of American Banker's 2024 Most Influential Women in Fintech.
The Federal Reserve and the Federal Deposit Insurance Corp. found shortcomings in the living wills of Bank of America, Citigroup, Goldman Sachs and JPMorgan Chase, although the FDIC deemed Citi's resolution plan as "deficient."
The two divisions — one focused on employee conduct, the other aimed at improving hiring practices — were created in response to last month's explosive report on widespread harassment and discrimination at the Federal Deposit Insurance Corp.
The Senate Banking Committee will consider the nomination of Christy Goldsmith Romero — the administration's pick to take over the Federal Deposit Insurance Corp. — on July 11.
New York Department of Financial Services' guidance advising banks and insurers to avoid doing business with the NRA was ruled as likely to be unconstitutional by the Supreme Court. Why is it still on the department's website?
The Honolulu bank is raising $165 million through depositary shares, a move that two observers said would help boost its below-average leverage ratio.
A federal judge granted a preliminary injunction sought by industry groups that sued to block a Colorado law. The law, which would cap interest rates on consumer loans, targets partnerships between fintechs and out-of-state banks.
PeoplesBank and Cornerstone Bank entered into an agreement to combine their holding companies in a deal slated to close early in 2025. The banks would continue to operate separately.
The Federal Housing Finance Agency wants feedback on how the Federal Home Loan banks can improve their affordable housing programs, including efficiencies in the application process.
"We're in an era of instant gratification, where we're not compared to other financial institutions, but rather to companies like Amazon, Apple, Google and Facebook," says Chief Technology Officer Sandeep Uthra.
The regulator's education arm compared consumers' reactions to financial information after being told it was generated by AI versus a human.
The FDIC board Thursday approved stricter resolution plans for larger banks and introduced a new bipartisan procedure to expedite merger application reviews.
Publicly traded companies are showing signs of improvement, but it may take some time until venture capital funding for fintechs recovers.
In a win for credit card issuers, a lawsuit challenging the Consumer Financial Protection Bureau's $8 credit card late fee rule will remain in a Texas court and not be transferred to Washington, D.C.
Financial services professionals should be in the business of normalizing discussions about personal finance. The result will be a more financially literate population, and that's good for everyone.
The Canadian institution will offer cross-border banking services, financing, wealth management and more with its new TD Innovation Partners platform.
The high court will determine how much deference judges should give to regulators in interpreting laws passed by Congress. The upcoming ruling has especially big implications for the Consumer Financial Protection Bureau, which has drawn the banking industry's ire.
The rocky journey and abrupt end of the technology company's fledgling buy now/pay later service underscores ongoing challenges facing fintechs that offer point-of-sale installment loans, and how banks may benefit from the changing BNPL ecosystem.
As part of a deal with New York Attorney General Letitia James, the cryptocurrency exchange agreed to return more than $50 million in digital assets to investors involved in the now-defunct Gemini Earn program.
The Consumer Financial Protection Bureau has been opposed by the financial services industry to a greater or lesser degree since its inception, and its constitutional legitimacy has now been deeply litigated. The bureau could still be dismantled — just not by the courts.
During the nine years Kevin Riley led the Billings, Montana-based institution, it quadrupled its size, largely through deals. New leadership could mean that the company focuses less on M&A and more on integration.
Sen. Elizabeth Warren, D-Mass., an influential progressive member of the Senate Banking Committee, decried reported meetings between Federal Reserve Chairman Jerome Powell and large bank CEOs who want the Basel III endgame proposal weakened.
The best way for banks to alleviate the effects of extreme weather events is to continue to do what they do best — lend.
A lull stemmed from overall cost cuts and a period of regrouping from which banks are emerging, experts say.
Payday lenders want an appeals court to rehear a novel claim about the Consumer Financial Protection Bureau's funding despite a Supreme Court ruling last month that upheld the agency's funding as constitutional.
Christy Goldsmith Romero — the White House's pick to succeed Martin Gruenberg as chair of the Federal Deposit Insurance Corp. — has generated little pushback from Senate Republicans, though her lack of bank supervisory experience and her record on cryptocurrency are the most likely lines of attack during her confirmation process.
Heightened regulatory scrutiny following Synapse Financial's bankruptcy will likely lead to stricter regulatory oversight of fintech-bank partnerships, potentially putting a damper on those collaborations in general, and Banking-as-a-Service offerings in particular.
MC Bancshares and Heritage NOLA Bancorp announced plans to combine in 2023, but the companies called off the deal after difficulties securing approvals. It amplified what an analyst called the "ever-present risk" of examiner scrutiny.
Economic downturns are inevitable, but regulatory overreaction to them shouldn't be. We need to rethink the way banks are allowed to recover from economic shocks.
The organization says 'request for pay' has gotten early traction with billing and account-to account transfers. Now it's targeting consumer-to-government and digital wallet disbursements.
In this edition of American Banker's news quiz, see what you know about the newest delinquency statistics, the best methods for combatting rising Zelle fraud, the ongoing battle between Republicans and Democrats over the head role at the Federal Deposit Insurance Corp. and more.
Due to retirement, burnout, heightened regulatory standards and probability challenges, lots of lenders are looking for new chief financial officers. The wave of departures is giving banks a chance to bring in more highly skilled finance chiefs.
Federal Reserve Chair Jerome Powell says crushing inflation is the most important thing the Fed can do to reduce costs in the housing market. Some economists and policy specialists say higher rates are not the only tool at its disposal.
Statewide Federal Credit Union in Flowood used its partnerships with Bankjoy and Strum Platforms to identify untapped communities in its field of membership and aggressively market its inaugural high-yield savings account.
The threat actor Sp1d3r posted an ad for the stolen data on Wednesday. Truist said the October breach is not related to a campaign by the same criminal group.
BNY, the country's oldest bank, drops "Mellon" from its branding; Apple FCU announces plans to merge with NextMark Credit Union; Moelis probes incident after a video circulated online shows one of its senior bankers appearing to punch a woman; and more in this week's banking news roundup.
The Federal Reserve Board and the bank itself say the enforcement action is the result of a routine inspection, but it comes amid the fintech's complicated high-profile bankruptcy.
The card network has developed a digital approach to delivering disbursements for disaster relief and other purposes via mobile devices, without requiring a separately downloaded app.
IntraFi has joined two banking industry trade groups spearheading an effort to source large institutional deposits at small, cash-starved CDFI and MDI banks.
The company's shareholders are ill-served by its large investments in fossil fuel projects that both damage the environment and present major financial risks.
Late payments, which have been on a steady rise since 2021, are now climbing at a slower rate or even declining at some major card issuers. Risks remain, but there's 'reason to be cautiously optimistic," one analyst said.
An interchange provision included in Illinois' budget bill could force banks and payment processors nationwide to revamp their payments infrastructure, lobbying groups for the industry say.
A scheduling conflict will prevent Federal Deposit Insurance Corp. chair Martin Gruenberg from attending a House hearing on workplace misconduct allegations despite ongoing GOP scrutiny and prior calls for his resignation.
All eyes are on the FDIC's toxic workplace scandal and the resultant resignation of its longtime director. However, another problem not being discussed is the agency's "problem bank list."
Digital assets have never caught on for mainstream payments, but the card network isn't giving up hope. Its latest effort aims to reduce complexity by learning from the successes of digital wallets.
Investors homed in on the benefits of positive economic data for lenders, rather than the possibility of a strong job market delaying interest rate cuts that would help to lower deposit costs and boost credit demand.
This year a California bank takes the No. 1 spot on American Banker's annual list of the best performing community banks.
During New York Community Bancorp's annual shareholder meeting, executives reiterated their mission to restore value in the beleaguered Long Island-based company. Questions from shareholders suggested at least some discontent following a capital influx that significantly diluted their position in the company.
Speakers from the Consumer Financial Protection Bureau, JPMorgan Chase and more outlined the ways they are hunting for much-needed technology talent, from pooled efforts to recruiting outside of the country.
Sen. Elizabeth Warren, D-Mass., a powerful member of the Senate Banking Committee's progressive wing, said that the Federal Home Loan Banks have "failed to deliver on their housing and community development mission."
Comerica Bank has agreed to a proposed settlement of fraud claims after denying refunds to Direct Express beneficiaries who alleged money was stolen from their prepaid accounts. In the past month, beneficiaries have been sent postcards announcing the settlement.
U.S. regulators need to do more to require banks to recognize the risks posed by climate change, and the damage that continuing to support fossil fuel extraction projects does to the environment.
In the U.S., the COVID-19 pandemic and other factors caused a sharp reduction in cash use. But with paper bills still accounting for nearly a fifth of all payments, the option is still far too entrenched to risk extinction.
In recent years, the wealth gulf between white and Black families has only grown. But there is hope that advances in fintech, such as wider adoption of artificial intelligence, can help.
Acting Comptroller of the Currency Michael Hsu Thursday said AI providers and end-users — including banks — should share responsibility for errors that derive from artificial intelligence models.
A Minnesota trade group and its co-plaintiff, Lake Central Bank, signaled that they plan to appeal a district court's dismissal of their lawsuit against the FDIC. The case involves the agency's guidance on nonsufficient funds fees.
A report on efforts to deconflict federal cybersecurity regulations found the Treasury in particular has not completed its recommendations.
Most banks are starting their generative AI experiments with closed-source models before progressing to open source. For some, the ultimate goal is to be model-agnostic.
Now the head of the Mizuho Americas' equity division, Pasquill started her career selling textiles, industrial products, and medical equipment.
Despite attacks on the broader ESG strategy, a narrow niche focused on women had a positive quarter.
The 3-year-old Climate First in St. Petersburg appears primed to take its renewable energy lending nationwide now that it's exiting the de novo phase.
By making it easier to enroll and access financial services such as buy now/pay later lending, the search giant hopes to enhance connections with users.
Rather than fueling uncertainty, the Consumer Financial Protection Bureau should be devising strategies that facilitate clearer policies that bring more certainty to lending markets.
Fifty-seven percent of financial services firms now operate on a hybrid basis, according to new research from American Banker. Some banks are finding ways to maximize the positive aspects and minimize the negative ones.
A month after Gunjan Kedia was named the company's president, the Minneapolis firm has promoted Stephen Philipson and Felicia La Forgia into new roles that will cover Kedia's former duties.
The Kansas financial institution is using Copper Financial's Guided Investing product that matches members to predesigned portfolios that suit their risk profile.
ELGA Credit Union said it plans to acquire Marine Bank & Trust in an all-cash deal. The combination marks the 12th of the year involving a credit union buying a bank, keeping the industry on pace to establish a new record for such deals.
The Consumer Financial Protection Bureau issued a final rule pursuant to its broader open banking proposal Wednesday that would require standard-setting bodies to include public interest consumer groups and others to receive bureau recognition.
The e-commerce firm will no longer accept Amex credit cards globally beginning in August, citing the card network's higher-than-average cost of acceptance.
For a country that relies on the energy and drive of immigrants to the extent that the U.S. does, it's surprisingly hard for them to get bank accounts. It's time to reassess what we mean by money-laundering risks.
Mastercard launches palm checkout in Uruguay, the U.K. commits to a gradual rollout of King Charles banknotes starting this week, and more.
The compensation committees at PNC, BOK Financial and a few other banks decided that their top leaders performed well amid industry challenges, and rewarded them for it.
As the private credit market swells, federal regulators and lawmakers continue to debate how and whether to apply oversight and heightened scrutiny to the market. But whether anything happens depends on whether President Biden wins a second term.
Sandro DiNello, who briefly led New York Community Bancorp amid turmoil earlier this year, is staying on the company's board. But Joseph Otting, the company's recently installed CEO, is taking on the executive chairman position.
The Consumer Financial Protection Bureau said in a new circular that it's still watching for attempts to get borrowers to sign away rights that can't be waived.
A proposal from the Consumer Financial Protection Bureau to extend the same protections as credit cards to the fast-growing BNPL industry aims to protect consumers, but it could also stunt the nascent industry's growth, experts say.
A recent white paper from former Federal Reserve Gov. Daniel Tarullo suggests that the stress testing regime should be decoupled from bank capital requirements. But if stress testing isn't an effective means of assigning minimum regulatory capital levels, what is?
Financial Business and Consumer Solutions disclosed a February breach in April and recently disclosed an expanded victim count. The company faces a class action lawsuit.
The Indiana bank said it struck a $40 million cash deal to sell its insurance brokerage to the Hilb Group. It joined a growing number of lenders announcing such transactions.
Integrating artificial intelligence into banking operations needs to be done with a clear business purpose in mind, and the articulation of that purpose needs to come straight from the top of the organization.
The San Francisco fintech's newest product seeks to improve lenders' underwriting decisions by identifying gig-work wages, buy now/pay later loans and other income streams gleaned from bank-account data.
In this month's roundup of top tech news: A firsthand look at the impact of Zelle fraud, the Supreme Court upholds the Consumer Financial Protection Bureau's funding, Walmart's split from Capital One and more.
The technology is adept at working with partial account numbers and other shreds of data to alert banks of ongoing and potential crime, the network contends.
Traditional financial institutions have much to gain from collaboration with digital asset natives — and vice versa. It's time to realize that potential.
In this edition of the American Banker news quiz, test yourself on topics such as Visa and Mastercard's shift away from relying on interchange, the Federal Reserve's efforts for balance sheet reduction, which financial services sector consumers trust the most and more.
In this month's roundup of top banking news: a Supreme Court ruling on CFPB funding, TD Bank's money laundering woes, an FDIC workplace probe reveals a culture of misconduct and more.
Numisma, a Connecticut-chartered uninsured bank, was granted a Federal Reserve master account last week — the first bank with a novel charter to do so since the Fed issued its master account guidelines in 2022. Whether others can do the same is an open question.
In this week's banking news roundup: NCUA grants Tribe Federal Credit Union a provisional charter; ICBA Payments names Jacob Eisen its new president and CEO; Mission Fed Credit Union announces new role for longtime leader Steve Hasbrooke; and more.
The bank backed off its ban on lending to companies that make assault-style guns used for non-military purposes. Instead, the firm will now make such decisions on a case-by-case basis with senior risk officers.
The rise of ecommerce and vertical software-as-a-service platforms are prime opportunities for large banks to sell payment processing, card issuance and other banking capabilities.
Atlanta Postal Credit Union's bid to acquire Affinity Bank marked the 11th deal overall this year involving a credit union buying a bank, matching the total for all of 2023. Separately, members voted against the merger of two credit unions in Indiana.
Retailers like Walmart, Target and Dollar General are changing the ways they collect payments in person. This, in turn, could influence payment habits, but it is unlikely to slow the overall momentum of digital transactions.
A former Consumer Financial Protection Bureau senior counsel argues that the agency needs to renew its focus on institution-building, in order to create a stable foundation on which the financial services industry, as well as its own employees, can rely.
The announcement comes after weeks of criticism from the bureau's director over fees including title insurance and credit scores.
The beleaguered Los Angeles-based bank reported its strongest quarterly results in more than a year, but executives at its Canadian parent company cautioned that improvements may not be linear.
Gesa Credit union in Washington agreed to acquire a 103-year-old community bank in Centralia, as it eyes opportunities for additional growth in the Pacific Northwest. In the District of Columbia, a bank group is calling for exit fees on banks selling to tax-exempt credit unions.
Shan Hanes, who led Heartland Tri-State Bank in Kansas until it failed last year, pleaded guilty to one count of embezzlement by a bank officer. He now faces up to 30 years in prison. He is scheduled to be sentenced on Aug. 8.
A new tool from the San Francisco-based fintech deploys artificial intelligence to automatically adjust merchants' card transaction fraud filters based on changing risk factors in real time.
OpenAI is training a new flagship AI model to replace the one behind the wildly popular ChatGPT. It seems like a good time to ask, if financial users could design their own generative AI model from scratch, what they would want?
Yields on the benchmark 10-year Treasury also rose in the past week as bond and note auctions got tepid responses from investors.
The Supreme Court decided to rule narrowly in Cantero v. Bank of America Corp., sending the case back to the Court of Appeals for the Second Circuit with instructions to perform a more nuanced analysis on whether a New York escrow law unfairly discriminates against national banks.
Payment firm BVNK is betting that PYUSD's potential to connect to PayPal's network of millions of consumers and businesses will make it more than another investment currency.
Effective coaches understand that the same message, delivered at different points in an employee's career, can resonate in new ways as they gain insight and experience.
The top five credit unions in our ranking have more than $267 billion in deposits as of the end of Q4 2023.
The retail giant has scrapped its credit card partnership with Capital One, its second public spat in recent years with a partner bank. Analysts say it may be a sign that Walmart wants to launch its own credit card on what it hopes will be a financial super-app.
The Toronto-based company's U.S. banking segment continues to face headwinds from muted loan growth and higher deposit pricing. Net income for the division tumbled by more than 25% last quarter.
Leaders of financial institutions and industry trade groups are working together to provide impacted communities across the U.S. with basic necessities and quick, online emergency loans.
A federal judge in Texas is locked in a back-and-forth with an appeals court over whether the industry's challenge to a cap on credit card late fees should be moved to Washington, D.C.
A reader takes issue with a column by the agency's former director in which she criticized its analysis of the consumer credit card market.
The Federal Deposit Insurance Corp.'s Quarterly Banking Profile for Q1 showed that banks' net income margins got a boost, but FDIC Chair Martin Gruenberg said concerns around inflation, interest rate volatility and geopolitical uncertainty could mean tougher quarters ahead.
Recognize high-achieving women in the pipeline and celebrate diversity across the industry. Nominate a female executive who is age 40 or under for Most Influential Women in Payments: Next.
The Swedish financial institution argues over potential regulations that treat buy now/pay later lending like credit cards in the U.S; Discover seeks the next hot market for real-time payments; and more.
The Illinois state legislature, as part of an agreement with retailers to raise state tax revenue, passed a budget bill that would bar the collection of interchange fees on sales taxes, excise taxes and tips for transactions that would be subject to Illinois sales taxes.
Beth Hammack, who stepped down as the bank's co-head of global finance earlier this year, will take the helm as President of the Federal Reserve Bank of Cleveland later this summer following the retirement of longtime President Loretta Mester.
The Securities and Exchange Commission's overly broad expansion of the Dealer Rule is only the latest example of the agency's yearslong effort to stifle innovation in a vibrant and growing industry.
The top five credit unions in our ranking have more than $223 billion in loans and leases as of the end of Q4 2023.
The financial services industry has largely recovered from the negative shocks of the 2008 financial crisis. Still, the results from the most recent release of the Edelman Trust Barometer found that banks need to address a significant level of skepticism among consumers.
Early Warning, which operates the payment network, says the rate of reported fraud is less than a tenth of one percent. Yet stories of consumers who have fallen victim to scams and lost money as a result abound.
In a speech, the Federal Reserve governor said she would have liked to see the Federal Open Market Committee move more quickly to reduce its holdings. The central bank is poised to begin slowing the pace of balance sheet runoff this week.
Regulators are inherently cautious, but they must not allow concerns about risk to blind them to the enormous opportunities artificial intelligence presents for the financial well-being of Americans.
Rather than compete against the rising tide of account-to-account transactions, the two card networks are looking for ways to make themselves essential to this growing market.
By embracing collaboration and innovation, Canadian banks can position themselves at the forefront
Digital-first collection agencies such as TrueAccord, January and InDebted are analyzing consumer engagement signals and more to determine the most effective way for its clients to collect on debt.
Gone are the days when Wall Street executives dressed in conspicuously expensive clothing. Now the industry has adopted a more relaxed and casual dress code.
In "This Is How They Tell Me the World Ends," Nicole Perlroth, a former New York Times reporter, offers a detailed picture of how the zero-day exploit trade developed and affects critical infrastructure.
Analyzed from a property rights perspective, the dividends paid by the Federal Home Loan banks to their members are surprisingly stingy, and vary wildly between the different banks.
First Federal Bank of Kansas City finalized a plan to reorganize its corporate structure; Regions Bank in Birmingham, Alabama, was one of 10 to win the "President's 'E' Award for Export Service"; Rhode Island-based Citizens Financial Group named Jim Weiss as Florida market president; and more in this week's banking news roundup.
New York Community Bank's acquisition of the failed Signature Bank helped with its liquidity. But there were other considerations that decisionmakers overlooked in allowing the transaction to take place.
There were significant red flags that regulators overlooked when allowing New York Community Bank to acquire Signature Bank. Those include the fact that the company was still integrating the Flagstar Bank transaction.
SouthState Corp. plans to purchase Independent Bank Group in a $2 billion deal, marking an end to the latter bank's long run of buying companies. Chairman and CEO David Brooks pointed to a challenging interest rate environment and heightened regulatory scrutiny as reasons he decided to sell.
Numisma Bank, a de novo bank backed by former Federal Reserve Vice Chair Randal Quarles, is the first bank without deposit insurance to be granted conditional approval under the Fed's new master account application framework.
House Financial Services Committee chair Rep. Patrick McHenry, R-N.C., told Federal Deposit Insurance Corp. Chairman Martin Gruenberg to make himself available for a June 12 hearing on the agency's workplace culture.
Executives at the Toronto-based bank said last year that they planned to add 150 branches in the United States. But when pressed on Thursday, they could not say how much they'll scale back their ambitions due to investigations over TD's anti-money laundering practices.
The bank plans to use artificial intelligence to make recommendations based not just on transaction analysis, but on shopper intent and behavioral data.
In this week's edition of the American Banker news quiz, see how well you know current items about the Federal Deposit Insurance Corporation, mergers and acquisitions, the Consumer Financial Protection Bureau and more.
An agreement with the Office of the Comptroller of the Currency will require Dallas-based Comerica Bank to institute a list of corrective actions regarding a range of compliance issues, including wealth management, third-party risk and financial accounting.
The outgoing CEO, now executive chairman of the Wall Street firm, told a conference at the Federal Reserve Bank of New York this week that cultural values are a critical element in any prospective merger or acquisition deal.
The 10-year Treasury yield, one of the mechanisms used to price 30-year fixed rate mortgages, is higher than where it was one week ago.
The bank took a big hit on an office property in Washington, D.C., during the first quarter. This month, it filed a shelf registration statement for an offering of up to $150 million that could be used to bolster capital or refinance debt.
New technology decoupling payment cards from the funding source of the transaction would stimulate competition between card issuers and networks — and raise prospects for Capital One's proposed $35 billion acquisition of Discover Financial Services.
The SEC's pending requirement that securities trades settle within one day shouldn't be a problem for any modern financial firm. What we should be aiming for is real-time settlement.
Executives from JPMorgan Chase, Bank of America and Wells Fargo are expected to get grilled in Congress this summer over victims of Zelle scams who don't get reimbursed. A Senate panel has spent much of the last year examining fraud on the bank-owned payments network.
The bill includes a provision that would codify Republicans' and the banking industry's complaints with a Securities and Exchange Commission measure that banks say would bar them from custodying crypto assets.
FDIC chair Martin Gruenberg's departure from the agency may have political implications as the White House and Senate scramble to name a successor, but experts agree that the move will likely result in a weaker Basel rule and stronger role for the Federal Reserve in joint rulemakings.
Two years on, U.K. regulators on Wednesday revealed the result of their long-running probe into Citigroup's actions that day as they saddled the bank with £61.6 million ($78 million) in penalties for the mistake.
While the $800 billion in PPP loans has largely self-liquidated through the forgiveness process, SBA continues to service the longer-duration EIDL portfolio and will likely be doing so for years to come after opting to hold on to the loans.
Royal Bank of Canada's U.S. wealth management arm has partnered with TIFIN AG to provide RBC's team of advisors with a suite of artificial intelligence tools for deepening client relationships and spotting potential missed opportunities.
It is increasingly clear that joining a risk consortium is the best defense banks have against fraudsters who are increasingly powered by artificial intelligence.
Santander joins Iberpay as the first supporters of the European Payment Council's instant account-to-account network, Australian lawmakers approved bills to create a federated digital identity system, and more.
The Consumer Financial Protection Bureau issued a new interpretive rule designating buy now/pay later lenders as credit card providers, subjecting those services to consumer protections like the right to dispute charges and receive refunds.
Shareholders at America's largest bank voted against requiring an independent board chair, though the proposal drew more support than similar measures did recently at other megabanks. The vote came just one day after Dimon signaled that his departure as CEO may be on the horizon.
Irvine-based CBC Bancorp's $121 million deal for Bay Community Bancorp in Oakland stands out at a time when high rates have put a damper on both the number of deals taking place and the multiples sellers are paying.
The company changed several of the practices the agency complained about several years ago, such as threatening to report non-paying borrowers to credit bureaus, co-founder Rodney Williams says.
The bill spells out how the Securities and Exchange Commission can and can't address crypto custody at banks and is getting a wave of bipartisan traction on Capitol Hill. But some academics and consumer advocates are concerned that the legislation could allow banks to bypass regulations.
Getting appointees confirmed by the Senate can be a time-consuming and painstaking process in ideal circumstances, and doing it in an election year amid a scandal is far from ideal. Even so, the White House and Senate Democrats should be motivated to move fast.
Martin Gruenberg's ouster from the Federal Deposit Insurance Corp. leaves the White House with the difficult task of finding a regulator willing to serve a roughly six month term atop of beleaguered agency.
West Coast Community Bancorp agreed to acquire 1st Capital Bancorp in an all-stock deal slated to close in the fourth quarter.
The Bank for International Settlements' Innovation Hub is doing important work on integrating new technology into the global financial system. The next step is to bring both banks and nonbanks into the discussion.
These three payment firms are working to grow revenue by pivoting to new markets and technologies, all while waiting for a turnaround in the industry.
The top five credit unions in our ranking had more than $319 billion of total assets as of the end of 2023.
Banking experts said that none of the currently circulating stablecoin proposals adequately address concerns about the overlap between banking and commerce and how a stablecoin issuer would go through insolvency.
The Federal Housing Administration also instituted a new language preference requirement that servicers must observe in transfers.
At an industry conference, Consumer Financial Protection Bureau Director Rohit Chopra said he was open to suggestions on how to increase choice and competition to benefit mortgage lenders and borrowers.
One year after it bought First Republic Bank, the largest U.S. bank by assets is launching J.P. Morgan Private Client, a new tier in its affluent-consumer services that brings together JPMorgan's brand with First Republic's concierge model.
Criminals breached a third-party database storing Santander customer and employee information, a type of intrusion that banks are increasingly facing.
The Florida-based bank, which has been building out its footprint across the South, would enter major markets such as Dallas and Houston with its planned all-stock acquisition of Independent Bank Group.
Federal Reserve Vice Chair Michael Barr Monday spoke at length about efforts to enhance banks' liquidity and long-term debt positions after last year's bank failures while saying little about the capital hikes detailed in the embattled interagency Basel III endgame proposal.
Originators misled VA refinance applicants into believing they could skip two months of mortgage payments, the Federal Deposit Insurance Corporation said.
The announcement, made at the Mortgage Bankers Association's Secondary Markets Conference, underscores Ginnie Mae's role at the forefront of digitization efforts in the capital markets space.
Investors are facing recent pressure after Republic First's collapse, allegations of criminal activity by an executive at Old National and a pending CFPB rule affecting credit card fees.
Regulation and other factors are creating friction for the banks and consumers that want to transact in crypto.
Gaps in traditional means of assessing creditworthiness are being filled by new kinds of information, such as cash flow data. The result will be good for both banks and borrowers.
Senate Banking Committee chair Sherrod Brown, D-Mass., asks the White House to nominate a replacement for Federal Deposit Insurance Corp. Chairman Martin Gruenberg after an independent review found instances of severe workplace misbehavior at the agency.
Community banks are in the early days of experimenting with AI and the earlier days of writing policies to govern its usage. It's key to do both at once.
The payday loan industry is looking to extend its years-long legal fight with the Consumer Financial Protection Bureau. It's planning to ask a federal appeals court to revisit a ruling that upheld a proposed limit on how often payday lenders can try to pull money from their customers' accounts.
New York Community Bancorp hasn't said who will replace Chief Operating Officer Julie Signorille-Browne, who is resigning amid a management shake-up.
A recommendation to give Ginnie Mae expanded authorities is drawing focus in the reactions to a Financial Stability Oversight Council report on nonbank risks.
Nash, the head of tech, media and telecom coverage, has no intention of ending her four-decade career anytime soon.
Rohit Chopra, director of the Consumer Financial Protection Bureau, said Friday that the agency will be moving forward with rules and enforcement actions after the defeat of a Supreme Court challenge to the agency's constitutionality.
Pima Federal Credit Union in Tucson plans to buy Republic Bank of Arizona in a cash transaction slated to close in the second half of this year. It's the ninth deal in 2024 in which a whole bank would sell itself to a credit union.
The House Financial Services Committee passed eleven bills, including a Democratic-sponsored bill on homeless veteran housing and a Republican-led package on bank regulation.
Even the conservative Supreme Court could see through the baseless arguments put forward by opponents of the Consumer Financial Protection Bureau, assuring that the agency will continue to fight to protect American consumers.
The card network is working with Salesforce to use large language models to be more proactive in how it resolves these interactions.
Investors reacted negatively to New York Community Bancorp's divestiture of a $5 billion loan warehouse portfolio to JPMorgan Chase. The deal has triggered a debate about whether other banks might retreat from lending to nonbank home lenders.
CEO Kevin Cohee is convinced WiseOne, the AI companion OneUnited Bank rolled out late last year, can help customers make better financial decisions. Cohee also wants to see his passion for personal fiscal improvement play to a wider audience, through development of a nationwide financial literacy curriculum.
A presidential advisor for housing could be the solution for the "alphabet soup" of federal agencies that don't understand the industry, Mortgage Bankers Association CEO Bob Broeksmit said.
As part of a sweeping digital enhancement of its consumer payment cards, Visa will enable banks to issue an account as a credit, debit, virtual or Pay in 4 installment loan, based on the user's preference at the time of purchase.
The $116 million deal to acquire HMN Financial in Rochester would mark the 26th acquisition of this century for Alerus. The transaction is slated to close in the fourth quarter.
Titi Cole, CEO of legacy franchises at Citigroup, is stepping down in June to pursue opportunities outside of the financial services industry.
Companies such as Synctera, Treasury Prime and Unit are diversifying their services or enabling more direct contracts between banks and fintechs to survive in an evolving regulatory environment.
The VantageScore 4plus product pulls in standard credit file information while also analyzing bank account balance and other transactional data to create an adjusted score
Federal Deposit Insurance Corp. Chairman Martin Gruenberg apologized for his management and temper at a House Financial Services Committee hearing that focused on his handling of the agency in the immediate aftermath of a workplace behavior report outlining serious misconduct that prevailed for years.
The number of borrowers who are at their credit limits is approaching its pre-pandemic level, and the percentage of balances that are sliding into delinquency has hit its highest rate in more than a decade, according to new research. Still, card companies are generally expressing optimism about their credit outlooks.
The small business lender's bankrupt shell has agreed to pay up to $120 million in connection with allegations that its verification processes for Paycheck Protection Program loan applications were faulty. The government argued that Kabbage reaped larger fees by enabling fraudulently inflated loans.
Stearns Bank in Saint Cloud is working with the on-demand payment technology firm Reset to launch an earned-wage card for blue collar and immigrant families struggling with access to money.
Community Financial Development Institutions' mission-driven lending has traditionally been a small segment of the lending market. That's beginning to change, but plugging into secondary lending markets might not be the kind of change communities need.
Executives also say funding pressures have begun to ease, though high interest rates and deposit costs remain a leading worry, according to new surveys.
Regulation, credit quality and AI-fueled fraud are among the big concerns for banks and payment companies.
Part of the Consumer Financial Protection Bureau's mandate is to educate consumers by providing reliable information. With its credit card late fee "report" and the associated rulemaking, it has failed to live up to that responsibility.
A federal judge has granted a preliminary injunction against the Consumer Financial Protection Bureau's credit card late fee rule, pausing it from being implemented days before it was meant to go live.
The fintech topped American Banker's annual list this year. CEO Dave Buerger attributed the company's hands-off management style as one reason that draws in and keeps workers around.
The core provider's new CEO, Stephanie Ferris, vowed to refocus on banks as FIS reboots after selling off Worldpay.
Quaint Oak Bancorp sold its majority stake in an equipment lender less than two years after the partnership helped drive record profits at the Southampton-based company.
Branch office deposit data is among the most confidential information at a bank, especially those with many branches. Why have regulators made this sensitive competitive data public for banks and thrifts annually for over 50 years but not for credit unions?
What lies ahead for the banking industry this year? Here's what analysts and investors are tracking after the latest bank earnings reports.
Rep. Andy Barr, R-Ky., is asking the Federal Deposit Insurance Corp. to withdraw a corporate governance guidance proposal as FDIC chair Martin Gruenberg is set to testify in Congress later this week.
The bank's chief information security officer shared why it took so long for the hackers to get in, what worked during the exercise and what didn't.
The new Financial Stability Oversight Council report also recommends an expanded Ginnie Mae PTAP facility and an industry-funded liquidity resource.
The Charleston-based company agreed to pay $267 million to acquire Piedmont Bank in Peachtree Corners, Georgia. It's United's 34th deal, but the first since 2021.
The Puerto Rico-based company's board of directors has given an additional title to COO Javier Ferrer, naming him president as of May 9. His career path closely resembles that of his boss, CEO Ignacio Alvarez.
Truist Financial completes the sale of its remaining stake in Truist Insurance Holdings; City National Bank has hired Rick Bechtel as executive vice president and head of mortgage and residential lending; Associated Bank names Chun Schiros as its first chief analytics officer; and more in the weekly banking news roundup.
Max Levchin, CEO of the buy now/pay later lender, said recent tests show young adults prefer interacting with intelligent chatbots over phone-based agents, but the company doesn't foresee major cost savings from generative AI for a few more years.
When the Trump tax cuts expire next year, the White House will ask for higher corporate taxes and a buyback tax as Congress enters one of its biggest economic fights of the decade, which will have major implications for bankers.
Large banks, particularly those with over $100 billion in assets, see increasing supervisory shortcomings related to interest rate and liquidity risks, governance and risk control issues, and cite cybersecurity, CRE values, and remote work trends as potential hazards in the future.
American Heritage Federal Credit Union in Philadelphia plans to acquire three branches and $105 million of deposits from Linkbancorp. The deal is part of a growing number of transactions involving credit unions buying whole banks or portions of their branch networks.
A "true" stablecoin would benefit the economy by improving the money supply, facilitating frictionless payments and lowering the cost of borrowing fiat currency.
In this week's edition of the American Banker news quiz, gauge your understanding of topics like Trump's ongoing criminal trial, alleged misconduct within the Federal Deposit Insurance Corp., industry succession planning and more.
The House advanced a resolution that would roll back a Securities and Exchange Commission resolution that banks argue cuts them out of the crypto custodying business, but President Biden said he would veto it if it passes the Senate.
The 30-year fixed rate mortgage fell for the first time in six weeks as the Federal Open Market Committee meeting outcome is finally priced in.
The Federal Trade Commission recently blasted two companies for their murky business practices and confusing charges. Industry experts say many digital and recurring payments are inviting more regulatory scrutiny.
The central bank is merely an instrument of Congress when it comes to setting card interchange fees. Only by making lawmakers feel the heat will the industry see meaningful change.
A group of 24 institutional investors say a recent pledge by the British bank to restrict financing for companies that focus exclusively on fossil-fuel exploration and extraction doesn't go far enough.
Banco Bilbao Vizcaya Argentaria SA took its offer for Banco de Sabadell SA directly to shareholders, a rare hostile move that the Spanish government said it opposed on concerns over job cuts and reduced competition.
After a California woman spent more than a decade obtaining reparations for Nazi plundering of her family's belongings, the money disappeared from her bank account. Her saga highlights a gap in fraud cases between what consumers expect from their banks and what those banks are in a position to deliver.
Federal Reserve Governor Lisa D. Cook highlighted concerns over private credit growth, commercial real estate distress and escalating cyber threats in remarks on financial stability at the Brookings Institution Wednesday.
Consumer debt aggregators such as Method, Payitoff, Spinwheel and Tally are partnering with financial institutions to embed solutions that aggregate account information and devise ways to optimize repayment — including with low-interest offers from the bank itself.
Federal Deposit Insurance Corp. Chair Martin Gruenberg will testify next week in Congress. Those hearings — which will come after the publication of a bombshell report detailing widespread misconduct at the agency — could signal whether he has a future at the FDIC.
Bank stocks are up this year as interest rates have leveled off and there are hopes that pressure on lenders' profits could moderate.
National Australia Bank is adding a Pay By Bank option for near-instant payments, Italy is bringing open-loop payments to buses in Tuscany, and more.
DCI in Hutchinson, Kansas, is giving employees unsure about retirement the option to work part-time and gradually ease into the next phase of their lives.
There is fundamental work involved in laying a modern data foundation and adopting a flexible, data-driven, cloud-based IT architecture suitable for AI implementation. Most banks aren't there yet.
Cybersecurity leaders for Visa, Deluxe and Fiserv said powerful cloud players have been unresponsive to their requests to monitor the vendors' security postures.
Banks rely on fee income to a greater or lesser extent depending on business model, and the Biden administration is intent on cutting consumer fees across the economy. But that push might hamper another administration priority: financial inclusion.
The full House is scheduled to vote Wednesday on a Congressional Review Act resolution that would overturn a staff accounting bulletin from the Securities and Exchange Commission. Banks argue that the guidance would effectively cut them out of the crypto custody business.
Thousands of consumers had to wait more than 90 days for funds after their accounts were suddenly closed, according to the Consumer Financial Protection Bureau.
As the Federal Housing Finance Agency considers revising Federal Home Loan bank membership standards, it should consider the benefits of scale that large member banks make possible.
Custodia Founder and CEO Caitlin Long says the Federal Reserve has rewritten the rules around accessing the government's payments system. The central bank and a federal court judge disagree.
By training a core payment card fraud-detection platform on more than 15 billion transactions, the card network is honing the accuracy of warnings sent to issuers about suspicious purchases.
Rep. Andy Barr, R-Ky., is introducing a bill to establish an Office of Supervisory Appeals at each of the banking regulators and that would give banks more power over the appeals process.
Capital Community Bank of Provo has purchased Security Home Mortgage, headquartered in nearby Orem.
The Minneapolis-based company has promoted Kedia to president, a role that CEO Andy Cecere and his predecessor both held before being named to the top job.
The Consumer Financial Protection Bureau's overdraft proposal would set fees at $14. With fee income under attack from many sides, bankers say they would have to further restrict credit.
In a surprise move, the Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and Federal Housing Finance Agency proposed a long-awaited rule to curb certain incentive-based pay arrangements for bank executives.
The $1.1 billion-asset Vibrant is working with the San Francisco-based distributed ledger development firm Metallicus through its Metal Blockchain Banking Innovation Program to examine use cases.
A veteran Canadian bank analyst says Toronto-Dominion Bank's role in an alleged money-laundering scheme has made the "worst-case scenario" more likely — a huge fine for the lender and years of restrictions on its U.S. growth.
Forty companies made the 2024 edition of American Banker's annual list of enviable workplace cultures in the financial technology space. Here is a look at some of what makes these firms employers of choice.
Incumbents face the challenge of updating their infrastructure for digital payments, while newcomers are pushing to compete by using artificial intelligence, cloud hosting and other technologies.
The Securities and Exchange Commission has warned Robinhood Markets that it faces an enforcement action over its crypto business — the latest sign that the regulator isn't letting up on its yearslong crackdown on digital assets.
Gary Farro's testimony focused on both the banking activity of Michael Cohen, a former Trump attorney who paid $130,000 to an adult film actress in 2016, and First Republic Bank's due diligence work.
If Capital One successfully buys Discover Financial Services, it would create an entity with an enormous amount of power. That could lead to abuses of vulnerable consumers.
The decision will turn on whether regulators think the merged company would lessen competition or pose a significant threat to the broader economy if it runs into financial distress.
The combination of two Pacific Northwest banks was supposed to create a regional powerhouse, but rising deposit costs have stung. CEO Clint Stein says he's "laser-focused" on making Columbia a top performer again.
A set of panels discussing minority depository institutions and digitization found that cost is a significant challenge to minority depository institutions, especially in the core processing space.
The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency issued a 30-page guidebook on managing affiliate risks. The report builds on formal guidance issued last year.
The efforts, which respond to President Biden's October executive order on AI, aim to improve synthetic content detection and improve the trustworthiness of AI models.
Tighter merchant connections between Square and Cash App helped Block produce stronger-than-expected results during the first quarter, while Jack Dorsey said the firm will launch its first remittance product later this year leveraging decentralized finance.
In talks with OCC officials, "it became obvious that we would not gain near-term approval given their recent experience with multifamily and CRE positions," FirstSun CEO Neal Arnold says. The companies announced other revisions to their deal, too.
The Federal Reserve has proposed that the two payments services run seven days a week, meaning they'd no longer close on weekends or holidays. The public has 60 days to comment.
Toronto-Dominion disclosed last year that it was under investigation by the department. Canada's second-largest lender also faces probes by three U.S. regulators over its handling of suspicious customer transactions.
A group of HSBC Holdings Plc investors wants the bank to set a funding target for renewable energy amid concerns its current green pledges are too vague.
In essence, it's a largely automated way to create so-called thematic indexes, which identify investments based on emerging trends, rather than on traditional industry sectors or company fundamentals.
On both sides of the Atlantic, regulators have failed to live up to their promises about how they would approach bank failures. Until they do, the industry operates in legal limbo.
Former Silicon Valley Bank exec Floyd Kessler joins Comerica as executive vice president and chief business control officer; Melissa Holding succeeds Michael Robinson as head of wealth management at Huntington; Goldman Sachs' Alexander Mayer is set to take on a senior position at JPMorgan Chase; and more in this week's banking news roundup.
In this week's edition of the American Banker news quiz, test your knowledge on Colorado banking legislation, the failure of Republic First Bancorp, acquisitions and more.
Banks maintain lists of consulting firms that they trust to help troubled commercial borrowers to fix their businesses. These specialists say they're getting more calls, especially in areas such as multifamily and CRE, from business owners who need help.
Nearly 15 years ago, Les Lieberman and other organizers of Porticoes Capital used a shelf charter to buy a spate of failed banks. Now they're hoping to replay the strategy.
The financial services company has found that engineers report higher satisfaction and save time when using a copilot to assist with coding.
The embedded banking services Amazon offers to third-party sellers come from the hidden hand of JPMorgan Chase's corporate payments arm, which markets its services to e-commerce platforms on a white-label basis.
Toronto-Dominion failed to submit suspicious-transaction reports in cases where it was reasonable to suspect the transfers were tied to money laundering or terrorist financing, along with other violations, according to the Financial Transactions and Reports Analysis Centre of Canada.
What's the point of regulatory capital rules that ignore demonstrated problems, like unrealized losses? We need to rethink what banks' disclose to investors and regulators.
The embattled Long Island bank unveiled a turnaround plan that involves selling noncore assets and diversifying its commercial loan book. But first, it will need to sort through credit-related challenges in its large commercial real estate portfolio.
During this week's Federal Open Market Committee meeting, officials voted to lower the cap on the amount of Treasury securities that can roll off the central bank's books each month from $60 billion to $25 billion.
House Republicans held a subcommittee hearing on reforming bank merger M&A, laying the groundwork to countermove against Biden administration efforts to make it more difficult for mergers to be approved.
Bolstered by healthy first-quarter global card-spending trends, Mastercard is focusing on opportunities outside the U.S., including a unique card-processing arrangement beginning this month in China.
A new policy directive aims to fortify critical infrastructure by enhancing collaboration between U.S. intelligence agencies and systemically important financial entities.
Mark Warren and Thom Tillis have introduced the Secure Artificial Intelligence Act of 2024 to address the unique risks of AI.
Fifteen banks have failed since 2017, with the most recent one collapsing on April 26, 2024.
Top Federal Home Loan bank officials said they fear the Federal Housing Finance Agency will use supervision to further the goals of last year's report recommending reforms to the Home Loan Bank System.
CRE CLO issuance surged to $45 billion in 2021, a 137% increase from two years earlier, when buyers of apartment blocks sought to profit from the wave of workers moving to the Sun Belt from big cities.
Texas Dow Employees Credit Union has agreed to acquire Sabine State Bank and Trust in Louisiana to raise its profile in the oil-and-gas industry. The deal coincides with record levels of U.S. drilling this year.
The Bank of England set a date of March 2025 for local banks to establish operational resilience plans, Ant Group is using artificial intelligence to aid shopping, and more.
The Consumer Financial Protection Bureau is considering new rules covering the collection and sale of some consumer data. If it's not careful, the agency could be inadvertently assisting identity thieves.
A 50% growth in losses from check fraud last year is pushing bankers in Illinois to ask regulators for a joint supervisory guidance and tougher enforcement of large banks' "know your customer" compliance.
Toronto-Dominion Bank has taken an initial provision of $450 million in connection with U.S. investigations into its anti-money-laundering practices and said it expects additional penalties to come.
After employees at a handful of Wells Fargo branches voted to unionize, CEO Charlie Scharf said the bank is "committed to bargaining in good faith" but also believes employees are "best served by working directly" with managers.
Resolutions calling for more details about how the two banks protect Indigenous people's rights failed to win majority approval on Tuesday. JPMorgan Chase shareholders are scheduled to vote on a similar proposal next month.
Consolidation has slowed since the pandemic, but UMB's agreement to buy Heartland Financial — the largest deal in three years — is one of several merger announcements in the past two weeks. Talks among other potential buyers and sellers are said to be picking up.
The failure of Republic First isn't a systemic threat or even a surprise. But the conditions that led to its failure are not all that unique and may foreshadow a secular rise in bank consolidation — one that policymakers can either embrace or resist.
Touting strong first-quarter sales and revenue growth, CEO Alex Chriss committed to rebuilding the firm's languishing Xoom cross-border unit and driving more Pay with Venmo options.
In this month's roundup of top banking news: Navy Federal Credit Union officially launches its overseas banking program, Republic First Bank in Philadelphia falls to capital troubles and investor outrage, deeper looks at talks between Discover and Capital One and more.
Rep. French Hill, the No. 2 Republican on the House Financial Services Committee, promised bankers Tuesday that he will continue to push back against Biden administration regulators, especially on bank-fintech partnerships and digital assets.
Noel Quinn is leaving after four years in the role. It's the third time in six years that HSBC has had to look for a new chief executive.
The Los Angeles-based company, which focuses on Korean Americans, said the acquisition of Territorial Bancorp will allow it to expand its customer base.
The first bank failure of 2024 will result in the Lancaster, Pennsylvania-based Fulton nearly doubling deposits in Philadelphia, a market it has viewed as strategically important for several years.
The combination of the two regional banks is set to create a $64.5 billion-asset company with a 13-state footprint across parts of the Midwest, South and West.
Banks and other financial market participants have been keyed into the central bank's communications around monetary policy expectations. But in an unpredictable economy, the guidance doesn't always hit the mark.
Michigan State University Federal Credit Union is working with the relationship-based lending app Zirtue to offer members a tool for outlining lending agreements and repayment plans.
Isabel Casillas Guzman, administrator of the Small Business Administration, wants the agency to get involved in direct lending, a practice that was discontinued during the Clinton administration. Congress has not embraced the idea, to put it mildly.
Extensive partnerships with third-party service providers, fintechs and other partners are the banking equivalent of a supply chain, and bankers need to be clear-eyed about assessing the risk associated with them.
GLS had already stopped issuing first-use plastic as of 2018, but it wasn't enough for the eco-minded German bank. Fake plastic still looks and feels like plastic.
The Federal Deposit Insurance Corp. is arguing that Colorado has the right to establish an interest rate cap that all state-chartered banks must follow. Three industry groups are suing the state in an effort to stop its attempted crackdown.
The Philadelphia-based bank's parent company, Republic First Bancshares, had been roiled by a yearslong proxy battle involving activist investors groups and its former CEO.
The Wyoming-based digital asset bank filed paperwork to challenge last month's district court ruling, which affirmed the Federal Reserve's view about its discretion over master account applications.
The former head of the Consumer Financial Protection Bureau resigned Friday after the troubled rollout of the Free Application for Federal Student Aid led some House Republicans to call for his resignation.
The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
In the inaugural iteration of American Banker's news quiz, test your knowledge on top articles covering the legal battles of the Consumer Financial Protection Bureau, new technology testing at JPMorgan Chase, earnings season and more.
The agency has a history of tangling with parent companies over how to split the burden after banking units collapse.
Branches won't succeed without significant investment in mobile and in-branch technology; but failing to invest in bankers themselves is just as big a problem.
To build their executive presence in meetings and on video calls, junior employees should embrace flexible schedules — and possibly media training, Michelle Young of Worldpay and Anna Greenwald of MoneyGram International said at American Banker's Payments Forum.
Fraser has a plan to reduce the number of management layers at Citi, shrink its workforce, speed up decision-making and give herself more control of the bank's five core businesses. "It's going to make some of our people very uncomfortable," she said.
The five-year deal puts Citizens' brand name in front of New Yorkers, as the bank continues to expand after buying HSBC's East Coast branches as well as Investors Bank last year.
Frontline staffers are asking for better pay, internal talent development programs and more flexible work environments.
A handful of banks concentrated in the Southeast U.S. are facing elevated charge-offs amid the liquidation of Mountain Express Oil. First Horizon Corp., which led a syndicated loan of more than $200 million to the bankrupt company, expects to take a $70 million hit.
Lenders either write down portions of soured credits or charge them off altogether to remove them from their balance sheets. Banks also set aside reserves to cover potential future bad loans. This allowance creates a buffer for lenders to absorb losses.
The FBI, NSA and CISA highlighted the emerging dangers of AI-powered deepfakes in phishing campaigns and cataloged protections companies can deploy.
Jeff Disterhoft, 56, has left GreenState Credit Union after 24 years as its chief executive.
It's a challenge Japan's largest lender must overcome as it focuses on growing its corporate banking presence in the US, said Fumitaka Nakahama, the firm's head of global corporate and investment banking.
Following New York Community Bancorp's acquisition of Flagstar, the company is ditching the regional bank brands that it long used. CEO Thomas Cangemi calls Flagstar a "neutral" but "patriotic" name that underscores the firm's nationwide expansion strategy.
The bank is testing artificial intelligence tools that aim to detect possible signs of misconduct from the tone of traders' phone conversations.
The top three fintech investors in the ranking have 76 combined VC investments as of June 2023.
But at the same time, the publicly traded company is selling off another type of housing finance asset to some large depository institutions.
This week in global news, Ant gets bullish on AI, PayPal's stablecoin has a fan in the bitcoin world, and more.
The Biden administration tapped Adriana Kugler, executive director of the World Bank and a professor at Georgetown, to fill a seat on the Board of Governors that had been vacant since February.
At least four of CEO Jane Fraser's senior deputies got new roles in the shakeup, which will result in a number of job cuts.
A continued slowdown in refinances, though, drove overall loan-application volumes lower last week, even as the Government Index posted a small gain, according to the Mortgage Bankers Association.
A joint letter from the banking and financial trade groups is the latest effort by the industry and its representatives in Washington to push back against the Basel III capital proposals, which would raise capital significantly for the largest banks.
The bank aims to use new tech to make account-to-account transfers for merchants an easier option than credit cards.
Any comprehensive overhaul of the Federal Home Loan Bank System will have to navigate a dense thicket of countervailing regulatory and stakeholder priorities.
Concerns about large unrealized losses on bond investments have receded since the spring banking crisis, but the paper losses have started growing again in recent months. The worries today are less about banks' survival — and more about how much their margins will get squeezed.
The top three fintech SPAC mergers have a combined announced deal value of more than $2.6 billion as of the end of June 2023.
Recent Arizent research shows that having appealing digital spaces is one of the most important factors for customer experience at banks.
Mergers and acquisitions are rebounding and equity capital markets are thawing, says C.S. Venkatakrishnan. That's a welcome forecast after a persistent slump sapped investment banking revenue across the industry.
Securities and Exchange Commission Chairman Gary Gensler told lawmakers that artificial intelligence could be used to game securities transactions in favor of corporate interests over those of investors. Critics say the SEC's plan to combat such conflicts of interest is hostile to technology.
Republican Josh Hawley, the senior senator from Missouri, says he intends to offer legislation that would cap credit card rates at 18%. For a bill designed to go nowhere, it's a surprisingly good idea.
More than half of investment firms for the world's superrich seek opportunistic direct deals based on attractive valuations, Citigroup found in a survey of 268 family offices representing $565 billion in net worth.
The buy now/pay later lender expects those increased expenses — brought on by rising interest rates — to eat into one of its key metrics: revenue less transaction costs.
The securities have been hard to sell in part because the bonds will probably pay below-market coupons for years.
Amex is planning to debut a new luxury lounge at Newark Liberty International Airport, part of the credit-card giant's continued push into travel and entertainment services.
The move comes as independent banks such as Centerview have branched into other areas of advisory like geopolitical and ESG matters.
Franklin Templeton has joined fellow asset manager powerhouses Fidelity and BlackRock in the race to win approval to offer the first U.S. exchange-traded fund that invests directly in bitcoin.
The proposed rule would make it virtually impossible for lenders to enter into routine hedging transactions.
U.S. lawmakers scrutinizing China said Wall Street executives asked to have their identities withheld when meeting with them so as not to alienate their Chinese investors.
Blackhawk Network now offers Visa gift cards made of paper, while Venmo and Hallmark are putting QR codes in standard greeting cards. Both initiatives address the environmental harms of first-use plastic.
The head of the Consumer Financial Protection Bureau defended the agency and its mortgage rules in particular on the 15th anniversary of the collapse of Lehman Brothers.
The Department of Health and Human Services' recommendation to reclassify cannabis as a Schedule III substance has sparked renewed interest in cannabis banking reforms in Congress, but in itself will do little to make banking cannabis businesses easier.
After taking incremental steps to bolster its wealth management business, the Rhode Island bank is preparing to roll out a broader strategy focused on high-net-worth clients.
The avoidance of one of the harsher economic scenarios is good news for banks, which are also contending with tighter profit margins and increasing competition for customers. But loan growth and credit quality could be at risk.
The North Carolina bank, which has been facing pressure to curb spending, rolled out a plan that includes job cuts, the consolidation of businesses and lower technology spending. Analysts wonder whether it will soothe investor frustration over Truist's sagging stock price.
Bank of America and TD Bank are finding that new employees and interns respond well to onboarding and training that takes place in the magical worlds of virtual reality.
Amid concerns that the combination of the National Association of Federally-Insured Credit Unions and the Credit Union National Association could amplify the voices of only the biggest institutions, the heads of smaller ones see two clear advantages: cost and consistency.
The CU Relief Fund for Ukraine, which launched in late 2022, now takes public donations and is working to recruit more institutions to its cause.
Hybrid working made it easier for some women to pursue a career while balancing family demands but a renewed return-to-office push may reverse some of those gains, a report predicted.
Women are still underrepresented in senior management positions in 62 European banks, according to a new report that highlighted how nine banks employed no women at all in their top executive group.
Overall rate locks dropped 1.5% on a month-to-month basis; the drop in purchase volume was higher at 1.9%, Black Knight said.
Low-code programming, which uses easy-to-understand visual elements to guide upgrades, is catching on with fintechs that want to avoid large projects.
Federal Reserve Chair Jerome Powell said inflation relief from the housing sector is "in the pipeline" but some say strong underlying demand and an inadequate housing supply could disrupt future rate pauses or cuts.
A district court judge ruled that Congress did not give the Consumer Financial Protection Bureau broad authority to look for discrimination, putting a major dent into the bureau's efforts to apply anti-discrimination principles to non-lending products such as advertising.
The deal, approved by a federal judge on Friday, resolves claims alleging that former CEO Tim Sloan and other bank executives made misleading statements to investors, the media and Congress.
Merrimack Valley Credit Union is launching a disaster relief loan, William Daley will retire from Wells Fargo, New York Community Bancorp promotes Signorille-Browne to COO and more in the weekly banking news roundup.
Executives at the Columbus, Ohio-based regional bank were convinced by a presentation Veuu, the solution's developer, made earlier this year.
Some analysts and investors want the North Carolina bank to make big changes to meet financial targets, which they say aren't being met more than four years after the BB&T-SunTrust merger. The critics will be closely watching a presentation by top Truist executives on Monday.
The private equity firm GTCR's large investment in R&T Deposit Solutions is a sign of the windfall reciprocal deposit networks are reaping after the bank runs this spring that was driven by customers with large, mostly uninsured deposits.
The Federal Deposit Insurance Corp. issued a report Friday acknowledging failures to adequately monitor First Republic Bank's uninsured deposits, interest rate risk sensitivity, and rapid growth, leaving the bank vulnerable to contagion.
A point of sale glitch puts smaller sellers in a bind: They can refuse sales, fall back to cash and checks, or take a leap of faith and absorb any transactions that fail after their systems come back online.
Bessant has served in a variety of leadership positions at the bank, including leading its technology initiatives and European strategy.
As the company prepares to slash headcount, CEO Solomon speaks up about his "caricature" portraits in the media
Ashton Ryan Jr. was convicted on dozens of fraud and conspiracy charges connected to the 2017 failure of the New Orleans bank he founded.
Texas bitcoin miners, embroiled in a controversy over their energy-intensive operations, are shutting down most of their machines while the state grapples with its power crisis.
The Federal Reserve Board's vice chair for supervision called for the creation of a legislative and regulatory framework for overseeing dollar-pegged digital assets.
Regional banks may soon favor CLOs again while proposed rules could draw banks to the market long-term.
The Federal Reserve governor said the "risks and tradeoffs" associated with private and sovereign digital currencies need to be weighed carefully.
Regulators and the public are still concerned about the condition of the banking system. Bankers can't afford to look away.
After a steep sell-off early in 2023, the sector has recovered ground in summer trading as recession worries ease. But investors remain wary because loan demand is light, deposit costs are high, and net interest margins are under pressure.
When 55 banks were asked to provide metrics on the health of their commercial real estate borrowers, some of them gave data that was six months old. The survey by Moody's Investors Service also found that certain borrowers are already struggling, and others could hit trouble soon, since they'll need to refinance at high interest rates.
Fraudsters are leveraging advanced artificial intelligence to impersonate customers and deceive financial institutions, but the industry is fighting back with detection systems.
Rohit Chopra, the director of the Consumer Financial Protection Bureau, wants to ensure that Big Tech firms are not unfairly excluding smaller fintechs from innovating on their platforms.
The World Bank director and former top Labor Department economist will become the first Fed governor of Hispanic descent and will give the board a full compliment of members since former vice chair Lael Brainard resigned in February.
The Federal Deposit Insurance Corp.'s second-quarter report on the state of banking noted that while banks are enjoying strong profits, they face declining deposits, rising unrealized losses and shrinking net interest margins.
Artificial intelligence is on the cusp of solving some of the most chronic problems facing bank managers. They need to embrace it.
Affirm is the latest BNPL lender to launch an in-store payment card with multiple financing options, giving consumers more checkout options as regulatory changes loom.
Chief Executive Rob Holmes, who launched an attempted turnaround shortly after taking the reins of the Dallas-based bank in 2021, is resisting the lure of share buybacks. Some investors may be growing impatient, but Holmes says the investments he's made are starting to pay off.
The New York-based company announced the launch of a health care lending unit after capitalizing on recent bank failures to add seven deposit-focused banking groups this spring and summer.
Protesters gathered outside the New York bank's headquarters last week, demanding restitution for what they allege was mismanagement. The bank did not give ground in its response to the demonstration.
The consumer lender's stock price has fallen more than 30% since its disclosure of a looming regulatory action, which was followed by the sudden departure of its CEO. To help meet its compliance challenges, the company's board added a former FDIC regional director.
With economic storm clouds gathering, Canada's bank regulator is considering stricter capital requirements that some analysts say have the potential to force Royal Bank of Canada, the nation's biggest lender, to sell equity.
The settlement resolves allegations dating to 2014 and covers 85 minority employees who alleged they were paid lower wages than their white counterparts and faced retaliation.
As the Latino population in the U.S. expands, so does the business case for banks and credit unions that want to tailor services for this audience.
Mountain America Credit Union and Lafayette Federal Credit Union are two institutions making concerted efforts to target small-business owners with digital tools.
Philip Jefferson was the Biden administration's pick for the Fed's number two position following the departure of Lael Brainard earlier this year. Two more Fed nominees are expected to get confirmation votes this week.
A member of the European Central Bank's board said private sector digital coins like PayPal's could harm competitive balance, Santander makes candy harts with romance scam slogans, and more.
From hidden fees to misleading marketing, small businesses face too many challenges when making and receiving cross-border payments.
Employees across the financial services industry are organizing in the hopes of obtaining better wages and other workplace improvements.
NatWest Group has picked former Mastercard chairman Rick Haythornthwaite to replace its chair Howard Davies next year.
Central bank digital currencies may be years away in larger countries, but payment companies are building international networks now. Here's why.
Cannabis banking, the Durbin-Marshall credit card bill and executive compensation legislation could be on the agenda this fall, but banking regulators' Basel III endgame proposal has made bipartisan compromise more complicated.
The Department of Justice is recommending a sentence of 12 months behind bars for Carrie Tolstedt, a former Wells executive who has pleaded guilty to obstructing a bank examination. That's harsher than the recommendation of the U.S. Probation Office.
The FDIC is launching joint ventures to market $33 billion of commercial real estate loans from the failed Signature Bank, prioritizing its statutory obligation to preserve low-income housing availability.
The Federal Reserve has been reducing its liabilities steadily since last March, and those effects are starting to be felt. But how low it should ultimately go — and how long it can stay low — is a tricky question.
By partnering with processors Worldpay and Nuvei to use Circle's USDC for B2B transactions, the card network can demonstrate the utility of digital assets on a broad scale.
A recent court decision could create more crypto service opportunities for traditional banks.
With a slew of older executives nearing retirement, the credit union sector will have a big management void to fill. But finding and developing new talent will be easier said than done.
The $100 million-asset bank ran afoul of various regulatory standards, including credit oversight, anti-money-laundering controls and third-party risk management.
North American and Chinese banks fared worst in the study, with the Transition Pathway Initiative Global Climate Transition Centre finding that lenders based in Europe and Japan "are far ahead" of others when it comes to taking action on climate change.
Legislation before Congress would violate individuals' digital privacy by requiring digital wallet providers to intrusively gather and report highly personal information.
The market for services that allow employees to access funds ahead of their two-week payday is a hotbed of activity, even as financial services regulators in some states seek to rein it in.
Despite regulatory efforts, applications for traditional new banks often now require lengthier review periods for approval than in the last several decades. Here are some key ways to lighten this burden.
After remaining above $2 trillion for a year, the Federal Reserve's overnight reverse repurchase facility has seen steadily less use in recent months. The development is welcomed by banks, but could be a sign that certain financial players are shifting funds to riskier activities.
Dama Financial's new CEO Pat O'Boyle is trying to make his firm the "weed department" for reluctant financial institutions. He has heavy competition — and a reluctant target market.
Banks in the U.S. tend to exist for about half the life span of the average human being. It doesn't have to be that way.
The National Credit Union Administration is addressing two of the main reasons why new institutions aren't being formed — making it easier for the organizers to raise the required capital and easing the burden of the application process, says Todd Harper, the agency's chairman.
Edward M. Lamont's biography of his grandfather, Thomas W. Lamont, who advised presidents and extended credit to foreign nations as JPMorgan & Co.'s chief executive in the first half of the 20th century, will be rereleased in paperback this fall. Given that more concise, analytical histories of the banker have been published since, this long tome may have been better left collecting dust.
American Banker's annual reputation survey shows regional banks were hit hardest by this spring's bank failures. But there were a few bright spots, including digital-only firms and highly specialized firms.
The Canadian bank is deemphasizing American office loans amid rising loss provisions. The decision could lead to decelerating growth in the U.S. market.
Federal and state financial regulatory agencies issued a joint statement Friday offering support and guidance to financial institutions affected by Hurricane Idalia. The agencies encouraged banks to assist impacted communities and provided banks with regulatory relief measures.
Smaller financial institutions are prioritizing engagement over other conveniences, a strategy that resonates with younger generations, according to data from Arizent.
The botnet of 700,000 computers — many in the U.S. — had assisted in major ransomware attacks, with the financial sector as its primary target.
Kevin Meyersburg, who is white, says in a lawsuit that the Wall Street investment bank terminated his employment and replaced him with a Black woman who is less qualified for the position. Morgan Stanley declined to comment.
Here are some highlights about the largest credit unions that made the 2023 ranking of the Best Credit Unions to Work For.
Here are the honorees that fall into the midsize category for this year's Best Credit Unions to Work For.
Read on for additional details on the 19 credit unions that made this year's Best Credit Unions to Work For ranking in this asset category.
Here is a look at the honorees from the smallest asset class of this year's Best Credit Unions to Work For.
Five Star Credit Union and Michigan State University Federal Credit Union announced a combined four bank acquisitions within a few days. They're among 10 credit union agreements to buy banks this year.
The USVI says the enormous sum that propped up Epstein's sex trafficking bolsters key allegations in its suit that JPMorgan knowingly benefited from Epstein's wrongdoing and ignored red flags.
Banking crises always recur. But time and again, bankers have been shown to operate on the assumption that good times are permanent.
In a tough time for buy now/pay later lending, the fintech hopes to pivot its strategy while removing the pressures that come from public shareholders.
When the prices of U.S. goods and services soar, the Federal Reserve tends to raise its benchmark interest rate, and commercial banks are pinched in several fundamental parts of their business.
Two related cases the Supreme Court is considering hing on whether state laws preempt the National Banking Act on the payment of interest on mortgage escrow accounts.
Bank customers who overdraw their accounts now face an average fee of $26.61, which is down from a peak of $33.58 in 2021. Consumer advocates contend that tougher regulations are needed to sustain the momentum, while industry groups argue that bank-led innovations are working.
Financial institutions in several Southeastern states had braced for impact of the Category 3 hurricane. Bank and credit union executives in Florida and Georgia say their facilities generally weathered the storm but that some communities they serve face substantial recovery efforts.
Southwest Financial Credit Union, which led American Banker's Best Credit Union to Work For, says employees are taking up to 400 hours more off than before its unlimited PTO policy took effect — but they are happier, and so are the members of the branchless credit union.
Banks have offered a more tepid critique of regulatory proposals to expand resolution planning and long-term debt for regional banks, suggesting the industry is intent on curbing July's Basel III capital proposal instead.
In August's roundup of American Banker favorites: The true cause of Heartland Tri-State Bank's failure, increased industrywide frugality among banks, two prominent credit union trade groups announce plans to combine and more.
In the aftermath of last year's racially motivated mass shooting in a predominantly Black community in Buffalo, New York, American Banker reporter Allissa Kline explores what responsibility banks have to help segregated, impoverished communities that were shaped in part by past discriminatory lending practices.
(Bloomberg) — US officials are looking at ways to give a broader swath of financial firms, including nonbank mortgage lenders, the ability to borrow from Federal Home Loan Banks.
Rent gateway Piñata and marketing app Shopmium are trying to lure consumers with incentives that don't accumulate balances as consumer debt increases.
If capital requirements are increased, they must be constructed in a way that doesn't unduly burden smaller banks and their fintech partners.
The bank attributed the surge to impairments in the U.S. office loan portfolio and appeared to signal that higher provisions from commercial real estate may persist.
UBS Group outlined major targets for its integration of former rival Credit Suisse, including 3,000 domestic job cuts and more than $10 billion in cost savings, as it posted the biggest ever quarterly profit for a bank on the back of the bargain acquisition in June.
The card network has agreed to pay USAA licensing fees for the use of mobile deposit capture technology. USAA says it plans to keep trying to get other banks to do the same.
Following reports that the Los Angeles bank was considering strategic options, its deposits fell by $1.7 billion in two days, according to a securities filing. The disclosures shed new light on PacWest's predicament before its merger agreement with Banc of California.
The Federal Reserve has issued a slew of private warnings to lenders with assets of $100 billion to $250 billion, including Citizens Financial Group, Fifth Third Bancorp and M&T Bank, according to people with knowledge of the matter.
The storm is slamming housing markets already beset by some of the nation's highest property insurance premiums.
Both purchases and refinance volumes climbed higher, as interest rates flattened following earlier volatility, according to the Mortgage Bankers Association.
Switzerland on Wednesday proposed tougher AML rules as U.S. officials ramp up their critique of what they say is weak sanctions enforcement.
The card network is working with the Bank of Montreal and the fintech Extend to enable businesses to approve and track in-store payments via employees' own digital wallets.
Innovations Financial Credit Union is purchasing First National Bank Northwest Florida, taking the place of Harvesters Credit Union, which terminated its 2022 deal to acquire the bank.
Many of the fees that the agency derides as unnecessary are funds owed to medical practices, homebuilders and educational institutions.
Uplinq, which helps lenders make credit decisions for small business owners using alternative data, already has large global banks among its clientele.
Ireland's central bank holds loan data for too long, Bank of America enables two-way corporate disbursements in Canada, and more.
The Federal Reserve, Federal Deposit Insurance Corp. and Office of the Comptroller of the Currency have until mid-2024 to finalize bank rules without risking a CRA nullification if Republicans run the table in 2024.
DOJ cites American Bank of Oklahoma's lending record, as well as racially inflammatory emails it claims bank employees forwarded, in support of its redlining claims.
The Federal Deposit Insurance Corp. has issued proposals that would make banks with $100 billion of assets or more hold more long-term debt as a cost buffer in the event of a collapse and meet new planning requirements in case they ever have to be resolved in an emergency.
The Canadian bank initially told investors the acquisition would result in more than $350 million in cost savings. But a recent analysis suggests that number could be even higher.
The Federal Reserve Board governors say they're worried about the added cost of the new requirement for non-systemically important banks as well as the implications for regulatory tailoring.
Zolve, a fintech that serves folks moving to the U.S., partnered with Gigs, a German startup, to roll out its mobile plan product.
The regulatory overhaul for large and mid-sized banks could lead to stronger pressure for those banks to merge in the coming years while leaving smaller banks less competitive — and arguably less stable.
Michigan State University Federal Credit Union, seeking to add $300 million of assets in Illinois, has agreed to purchase McHenry Savings Bank.
Grayscale Investments moved closer to launching a spot-based bitcoin exchange-traded fund in the U.S., a potential watershed moment in the cryptocurrency industry's quest to tap billions of dollars from everyday investors.
Apollo Global Management, Pagaya Technologies and Sixth Street are said to be working on final offers for Goldman Sachs Group's consumer-lending unit.
Maryland is the latest state to decree that employer-sponsored EWA products aren't loans, but the battle over how they will be regulated is just beginning, experts say.
UBS is trying to retain many of Credit Suisse's most senior wealth bankers, but the decision to bring Babak Dastmaltschi on board, who catered to tycoons emerging from the collapse of the Soviet Union, may raise eyebrows.
Consistent wins aren't typically about continuously introducing novel strategies, but about better and more consistent execution with proven ones.
The regional bank's stock price is down 38% this year, and it recently got downgraded by S&P Global. While there's light at the end of the tunnel — as Key looks to rebound from the negative impact of soaring interest rates — analysts question whether the improvement will take too long to materialize.
The Consumer Financial Protection Bureau said it would determine whether its victims' relief fund could be used to make payments to affected consumers because companies that agreed to settle allegations of illegal telemarketing practices are insolvent.
Azher Abbasi, executive vice president of the supervision and credit group at the Federal Reserve Bank of San Francisco, will retire on Oct. 31. Niel Willardson, a former Minneapolis Fed official, will replace him as interim executive vice president Oct. 1.
The Alabama-based credit union has agreed to purchase the $215 million-asset OneSouth Bank in Macon; it also purchased Georgia banks in 2014 and 2015.
Followers of Islam cannot pay interest on loans. Androscoggin Bank figured out a way to structure a new product that addresses that challenge and paves a path to more homeownership.
The reserve bank formally kicked off its search to replace departed president James Bullard, who held a doctorate in economics and was lauded for his communication skills.
Some banks are gravitating toward API connectivity to build an "ecosystem of applications." Others like a one-stop-shop or ready access to executives.
The U.S. Securities and Exchange Commission is probing the non-QM lender, which pledges to promote homeownership in underserved communities, over its mortgage-backed securities, according to people with direct knowledge of the matter.
The planned sale marks another step for the Wall Street giant away from previous plans to work more with retail customers.
A former insider wants the Federal Home Loan Bank System's regulator to require its 11 regional banks to balance members' liquidity needs with the system's public mission to fund affordable housing and community development programs.
The top three industries have $19.8 billion in combined fintech financings through June 2023.
The need to create a pipeline of female leaders in the male-dominated fintech space is urgent and deserves the industry's attention.
The proposed regulations from the Treasury Department and Internal Revenue Service offer clarity on reporting rules enacted in 2021 to curb crypto-related tax evasion by offering more transparency into customer trades.
The bank's retail clients can enable iPhones to accept payments without extra hardware, raising the stakes for any company that competes with the bank for merchant clients.
The institutions in the second grouping of American Banker's top Credit Unions to Work For demonstrated the importance of a fun work environment, transparent leadership and competitive benefits.
American Banker's first grouping of the top institutions for 2023 features leaders that are enhancing their offices and surrounding communities through unique volunteer programs, comprehensive benefit packages and more.
The company is paying $75 million in penalties and restitution in connection with SEC allegations that its investment advisory arm overcharged customers it inherited in its Wachovia acquisition in 2008. The settlement is said to show the importance of conducting extensive compliance checks in a rapidly consolidating industry.
The lender was accused in a recent lawsuit of failing to meet its obligations to underserved borrowers in lieu of wealthy clients.
Financial institutions must adopt generative AI and large language models, or risk falling behind, experts said.
Burke & Herbert Financial Corp. and Summit Financial Group announced a transaction that they described as a merger of equals valued at roughly $371.5 million in stock.
New Peoples Bank announced J.W. Kiser will be its next president and CEO; D.A. Davidson hired Dan Fiandaca to lead its brokered CD underwriting group; Citizens Bank launches Roger, a digital bank for military members; and more in the weekly banking news roundup.
Comerica CEO Curt Farmer and CFO James Herzog as well as the company itself face a purported class action by shareholders for allegedly making false and misleading statements about the Dallas company's oversight of the Treasury Department's Direct Express program.
Following six years of development, the National Institute of Standards and Technology has released draft standards for three algorithms that can resist future attacks by quantum computers.
Mastercard and Visa stepped back from their card partnerships with Binance Holdings, distancing themselves from the cryptocurrency platform that's under threat from regulators worldwide.
The National Credit Union Administration approved Dade County Federal Credit Union's application to add almost 2 million potential members — giving it a total field of membership of 4.6 million. It's the largest-ever community charter expansion in terms of total resulting potential members.
The small community bank was bought up by crypto-focused investors and quickly repositioned to cater to tech innovators. Is this problematic or perfectly legitimate?
In his highly anticipated speech in Jackson Hole, the Federal Reserve chair acknowledged the progress made in cooling down inflation, but said the central bank would not hesitate to raise rates further if needed.
Half of the transactions on the buy now/pay later lender's new plastic card become interest-bearing loans.
An effort to ensure banking services are available to legal businesses is being undermined by groups trying to rewrite the history of regulatory overreach related to supposed reputational risk.
House Republicans' accusation that government agencies are being weaponized against political conservatives underlines a longstanding challenge for banks: Balancing customers' data privacy and stopping financial crime.
After terminating a $13.4 billion acquisition of First Horizon in May, TD Bank disclosed a federal investigation of its anti-money laundering controls during the bank's third-quarter earnings.
The company's U.S. banking unit, which focuses on wealth management, reported a $38 million quarterly loss. Executives said they're cutting staff in an effort to right the ship, but analysts questioned whether the expense cuts are aggressive enough.
The decision by the 2nd U.S. Circuit Court of Appeals in Manhattan came in a securities fraud lawsuit brought by a trustee for note purchasers in a 2014 syndicated loan deal led by JPMorgan Chase.
The program is even lower than Freddie Mac's best of 3%, with Zillow offering to pay 2% of the down payment at closing, according to a statement Thursday.
A co-founder of Totem, a neobank for Native Americans, initiated legal action against his counterpart. Disputes are not uncommon in the startup world.
After the turbulence of the banking crisis, here are a dozen ideas experts have for keeping the financial system healthy, from American Banker's BankThink op-ed section.
Front-running schemes by the bank's foreign exchange desk defrauded clients of millions of dollars. In 2017, the Federal Reserve cited the lackluster oversight for failing to stop it.
Banking regulators have been debating how to reform the implementing regulations for the Community Reinvestment Act across two presidential administrations. But despite banks' urging to slow down, regulators are poised to finish the job in early fall.
UBS Group AG is expected to announce soon that it's fully integrating Credit Suisse's domestic bank, ending months of speculation about the future of the business.
Most financial firms are failing to see how the natural world impacts their business, but they're about to wise up — quickly.
Investment in machine learning is outpacing consumer interest on the ground. Here's what companies like FIS and Marqeta are doing while waiting for demand to catch up.
While federal efforts to provide funding for minority small businesses wither, a lawsuit seeks to shut down an effective source of private capital.
The four banks agreed to pay $499 million and also cooperate in the litigation against Bank of America Corp., the sole remaining defendant.
The payments industry produces billions of cards each year, contributing to the massive amounts of plastic that end up polluting the planet. Key players have stepped up to adopt more environmentally friendly options.
Banks handle vast amounts of data, and understanding and making the most of that data is key to staying competitive.
A new state regulation brings consumer-style rules to the small business realm, extending California regulators' ability to crack down on nonbank lenders that engage in questionable practices. Observers believe that it could be a model for other states.
East West Bancorp chief Dominic Ng long faced skepticism from analysts who had questioned his conservative approach to capital allocations — a strategy that has helped his Pasadena-based bank weather decades of ups and downs in the banking industry and survive amid the collapse of other California banks this spring.
Forget special offers, ubiquitous branches and promises of convenience. Younger clients want to see state-of-the-art technology and hear good things from friends and family, according to a recent Arizent survey.
The country's Big Six banks are seen as likely to continue struggling as they contend with deteriorating consumer finances and rising internal costs.
Federal Reserve chair Jerome Powell is expected to tout the economy's brightening prospects while communicating to markets that the central bank's fight against inflation is not yet over in his address at an economic summit in Jackson Hole, Wyo. on Friday.
Despite ESG headwinds in Florida, Climate First Bank in St. Petersburg continues to make "green" loans and plans to show consumers how their purchases affect the environment.
SVB promotes its head of payments infrastructure, Turkey approves Colendi to open a digital bank and more.
The agency will hold an open meeting next month to issue the proposal for banks with at least $100 billion of assets. It will also discuss changes to resolution plan standards.
Banks like Capital One, U.S. Bank and Santander are updating their floor plans and their menus — often with a discount on food or beverages for cardholders — to reach more millennial and Gen Z consumers.
Empeople Credit Union will stop dealing with coins at its five Maine branches beginning this September. It's unclear whether there will be copycats, but there are reasons it might be tempting for others to follow suit.
No matter how good generative artificial intelligence gets, consumers navigating the purchase of complex financial products will always demand the attention of expert human advisors.
A series of deals over the summer suggests growing interest by private equity investors in acquiring community banks. Five such deals have been announced this summer alone.
Consumer loan balances fell in July for the first time since 2020 as banks have tightened lending standards in response to rising rates and jettisoned assets to bolster liquidity and capital levels.
News of the delisting, prompted by ongoing delays related to filing its 2022 annual report, triggered a selloff of the Philadelphia-based company's battered stock.
Credit unions held more than 66% of all assets in the community development financial institution ecosystem, according to research from the Federal Reserve Bank of New York.
The Alabama-based regional bank didn't effectively track whether some loans complied with flood insurance regulations, according to the Fed. Regions said that it had fixed the issue by 2017.
The lack of affordable housing is becoming an increasingly acute political and economic problem. But a few small tweaks to a Federal Housing Administration loan program could unlock prospective homeowners' potential to solve that problem for themselves.
The American Bankers Association and Bank Policy Institute Tuesday urged bank regulators to delay the finalization of its Community Reinvestment Act rule, saying regulators have not calibrated the rule to account for upcoming capital changes or considered whether courts will find the Consumer Financial Protection Bureau's funding structure constitutional.
The plan calls for the formation of Orca Bank in Bellingham, Washington. It would become a subsidiary of Savi, whose CEO would assume the same role at the bank.
A new reporting requirement for banks with at least $100 billion of assets would push seven banks and two holding companies into a stricter regulatory category.
Banks are holding their fintech partners to a higher compliance standard as regulatory scrutiny of banking-as-a-service increases.
Many public-transit riders are ready for a single app to manage fees for trains, buses, bicycles, scooters and ride-sharing across cities, according to a new global survey from Visa.
Figure, Oportun and Brex are among the fintechs that have dropped their applications for a banking charter.
It's hard to see FedNow as a revolutionary solution because it's not actually much newer, faster or cheaper in many cases than existing payment services.
Many depositors have "shifted their funds into higher-interest-bearing accounts, increasing banks' funding costs," S&P wrote in a note summarizing the moves.
The job cuts come amid caution about the industry's growth potential in the second half of the year. Some 45,000 positions have been lost in banking and related industries over the last two-plus years.
American Banker's Most Powerful Women in Credit Unions celebrates the senior executives guiding the future of the credit union industry, while also examining issues of mentorship and inclusion. The deadline for nominations is October 12.
The New York megabank is considering splitting its institutional clients group division into three parts following the upcoming departure of top executive Paco Ybarra, the Financial Times reported. The heads of the three segments would report directly to CEO Jane Fraser.
Two-thirds of business executives expect to pursue merger-and-acquisition deals over the next 12 months, according to a new EY survey. That's good news for larger banks with M&A advisory operations.
As consumers' cushion shrinks, they are becoming more dependent on their paychecks to maintain their standard of living. Economists are split on whether wage growth is strong enough to fill the gap.
Goldman Sachs Group is exploring a sale of an investment-advisory business it bought four years ago, undoing another signature deal under CEO David Solomon's ill-fated push to manage money for a broader set of customers.
John Paul Dillon pleaded guilty to nearly $1 million in fraud related to COVID-19 emergency small-business programs, including the Payroll Protection Program and the Economic Injury Disaster Loan Program and a fraudulent loan application for a mortgage.
The longtime payments executive plans to maintain the company's alternative pricing as a way to address the growing criticisms of interchange.
The Office of the Comptroller of the Currency granted federally chartered banks permission Monday to close branches in California, Nevada and Arizona affected by Tropical Storm Hilary.
Congress must act to ban nonbanks from issuing stablecoins. The products are virtually equivalent to bank deposits, and should be regulated as such.
Key data points have shown price and wage pressures continue to dissipate, which should bolster the case for an end to rate increases, but strong labor-market activity may keep policymakers uneasy.
Tighter credit standards and lower demand for business loans could make it harder for the Fed to achieve the soft landing it's seeking. Still, bankers are cautiously optimistic, noting that some businesses are using their savings to invest at a time when borrowing costs are high.
Banks are committing financing for a slew of new deals, while investors clamor for syndicated loans as interest rates rise.
"Their criminal case is likely to move faster than this civil suit, and vindication there may also neutralize some of the negative publicity about which they complain," the judge in the case wrote.
Banks pay millions of dollars each year to have their names become part of the lexicon of sports-obsessed Americans. Here's a look at the largest deals, which span pro baseball, football, basketball, hockey and soccer.
Roughly 55% of people sentenced for embezzling funds from 2007 to 2017 were women, according to new research. Some experts suggest women are more likely to hold accounting and money-handling jobs, while others say the trend is a reflection of biases by employers and law enforcement.
Cambridge Savings Bank's Ivy Bank online-only unit has spent two years offering CDs and savings accounts. Meanwhile, Sumitomo Mitsui Financial Group's new digital bank, Jenius, launched with personal loans. Both want to widen their product sets to benefit both sides of the balance sheet.
The subpoena is part of a growing Republican narrative that Democrats have weaponized the Federal Bureau of Investigation against conservatives.
The bank developed its cloud-based Ally.ai platform within months. Now it has rolled out its first use case: summarizing customer service calls so the agent doesn't have to multitask.
The Wall Street firm is enlisting several hundred new staffers to help address concerns from authorities including the Federal Reserve, according to people with knowledge of the matter.
There has been a recent surge in organizing efforts among credit union employees. To discourage this, leaders should pay workers well, provide good benefits and be accessible.
Unionizing a workplace is an arduous process, meaning that employees who organize are dedicated to change. Executives must seize on these moments to address workers' concerns instead of reacting defensively.
Expansions in the state by giants such as JPMorgan Chase and Bank of America could accelerate credit union consolidation, as evidenced by two recent deals.
There is an urgent need for a new class of security solutions that will allow people to retain control of their decentralized financial lives with confidence and safety.
The company, which became independent in July, will rely on the cloud to reach new markets.
A 2018 report laid the groundwork for the Biden administration's push to root out discrimination in home valuation. A counter study says no such practices exist.
Banking and credit union regulators encouraged compassionate treatment of customers in Hawaii communities hit by wildfires. They also vowed to grant expedited approvals of temporary banking facilities, be flexible in compliance matters and provide other support to financial institutions.
Consumers favor credit cards that offer better spending rewards and that card issuers should consider providing services to help their customers manage growing account balances, J.D. Power's annual survey found.
The embattled credit card company, which is bracing for regulatory action, warned Thursday that heavy spending on risk management and compliance will persist. Executives also said that internal and external candidates will be considered for the permanent CEO job.
The latest draft emphasizes integrating cybersecurity into core governance functions and broadens its scope beyond just critical infrastructure sectors. It also offers guidance on dealing with novel threats, such as newer strains of ransomware.
Many institutions are building internal development programs to lower the barriers of entry to more senior roles as aging leaders retire.
The average for a 30-year home loan marked the fourth straight week of increases, according to Freddie Mac.
Offices impacted are located in Chicago, Cincinnati and Kansas City, a company representative said Wednesday.
The small bank in eastern Washington State violated its commitment to regulators by helping the crypto company issue stablecoins. Earlier this year, the bank opted to dissolve itself.
Establishing a conduct risk authority in the U.S. would go a long way toward restoring trust in the banking industry.
The data-aggregation specialist has teamed with two payroll tech firms to the streamline process of setting up direct deposit at a new bank, as more people move their accounts to obtain better rates.
The Truist Leadership Institute is part of a growing corporate leadership-training industry that says it's focused on creating more empathetic leaders. But critics decry the institute's blurring of personal and professional boundaries, and question its scientific backing.
The credit card company is no stranger to regulatory penalties, but its CEO's sudden departure this week raises the specter of a more painful punishment tied to possible compliance shortcomings. Analysts are hoping to get clarity Thursday on how bad things could get.
Software can help banks move computing workloads to geographic regions where clean energy is available.
Merchants may rake in 14% to 200% more revenue from consumers who forgot to cancel online subscriptions paid for by credit and debit cards, according to a new study based on anonymized consumer transaction data.
The Pittsburgh company has tapped the U.S. blue-chip bond market for the second time since the banking crisis in the spring. Companies are hurriedly raising capital before the cyclical summer slowdown that typically kicks in toward the end of August.
Bank of Ireland ATM glitch spurs mistaken withdrawals, Stablecoin issuers get rules in Singapore, ANZ is looking for money mules, and more.
Higher interest rates and increased competitive pressure from captive finance companies cut into vehicle lending at credit unions in the second quarter.
Dan Sheehan, former CEO at Professional Bank in Coral Gables, said he's "putting the band back together" to spearhead his new, Texas-based employer's expansion plans in the Sunshine State.
Banks need to rethink their relationships with customers for an era in which transitioning to a new financial services provider carries far fewer costs.
Visa Inc. is facing fresh scrutiny from the US Justice Department over how it charges merchants for technology it uses to protect cardholder information.
JPMorgan Chase, Wells Fargo and TD Auto Finance all see opportunities in providing financing to dealers for inventory, the purchase of competitors and the addition of infrastructure for electric vehicle sales. Two other banks recently said they're exiting the business, which could provide a further opening.
The credit-reporting agency was fined $650,000 for sending customers marketing emails without an option to unsubscribe. Financial institutions are subject to the same law, called the CAN-SPAM Act.
The SEC and CFTC charged 11 Wall Street firms $549 million in penalties over recordkeeping violations. The agencies vow to continue enforcing compliance throughout the industry.
Community bankers anticipate that interest rates could soon level off and the broader economy may avert a downturn as a result. If that forecast proves true, lenders could minimize credit losses and enjoy stronger loan demand than they had expected earlier in the year.
Forthcoming regulations to strengthen capital buffers and resolution processes for large regional banks are sparking debate about those proposals' efficacy and compounding existing problems for regional banks around stability and funding costs.
The bankrupt former parent of Silicon Valley Bank is losing $9 million a month in interest on deposits that were trapped when federal regulators took over the failed bank.
The Basel III: Endgame proposal, as well as forthcoming proposals on living wills, uninsured deposits and long-term debt are coming as banks' interest rate margins are getting slimmer, loan demand is weakening and bank credit seems headed for a downgrade. That's a lot of headwinds for the banking industry.
President and COO Dave Glaser discusses his company's strategy as demand builds for services that could stress older systems.
The verdict ends a decade-long lawsuit over the Federal Housing Finance Agency's amendment to a stock repurchase agreement in 2012.
Under the proposal being considered by the agency, recipients of public benefits would be unable to enjoy the same access to their financial data given to other citizens.
The Consumer Financial Protection Bureau plans to propose rules to require that data brokers comply with the Fair Credit Reporting Act to limit the sale of data from being sold for any reason other than what Congress has specified as having a "permissible purpose," such as credit underwriting.
JPMorgan Chase and Citigroup are funneling more investment into China, even as relations between the countries sour and Washington bans U.S tech investments that could bolster its rival's military capabilities.
Discover Financial Services' announcement of the immediate resignation of longtime executive Roger Hochschild comes weeks after the company announced it overcharged merchants for 16 years.
OnPath Federal Credit Union in Louisiana recently launched a Spanish-language microsite to provide native speakers access to digital products that are simpler to navigate and content that's easier to understand.
The Canadian bank committed Monday to lending and investing over $2 billion in the Garden State's lower-to-middle income communities over the next three years. A $50 billion, multi-state agreement was scrapped earlier this year after TD failed to get approval to buy First Horizon Corp.
Federal Deposit Insurance Corp. Chair Martin Gruenberg said Monday that the agency is not backing down on its Basel III capital proposal, and wants to implement long-term debt requirements and adjustments to the living wills and uninsured deposit rules.
The fintech is relying on Alex Chriss' experience in melding technology with marketing to ignite growth with small-business and consumer users.
White Clay and Quantalytix are two financial technology providers whose founders spent more than a decade in banking and are intimately familiar with the issues they try to solve.
UBS Group AG agreed to pay $1.44 billion to settle a case with the U.S. Department of Justice regarding how it handled residential mortgage-backed securities.
In its annual report, the Federal Deposit Insurance Corp. explored the various credit, market and operational risks facing the banking sector. It also explored crypto and climate issues.
The largest U.S. banks will fork over billions to cover their share of a special assessment from the Federal Deposit Insurance Fund to cover replenishment of the Deposit Insurance Fund after this spring's bank failures.
About two-thirds of respondents in a survey of roughly 300 Bloomberg terminal users said the anti-ESG movement that started in the U.S. last year will force firms to stop using those three letters in conversations with clients.
Cade Thompson, head of U.S. debt capital markets at KKR, said he expects to see a longer list of more formal auction processes that will come to market post-Labor Day.
The shift to faster payments–plus frustration over network interchange costs–is increasing merchants' use of services that pull money directly from consumers' bank accounts.
The central bank might be able to avoid a recession, but must not sacrifice the economic well-being of communities harmed the most by high interest rates.
Thomas O'Brien has gained a reputation for being able to salvage institutions on the brink of disaster. With his latest rescue job nearly complete, the fix-it specialist ponders his next move.
Banking and housing experts say that if additional capital burdens spur large banks to pull back on mortgage origination, servicing and funding, the ripple effects could be felt more intensely in the housing market than on banks' bottom lines.
Chief Executive Andy Cecere is among the defendants in a shareholder lawsuit that alleges that top officials at the Minneapolis bank profited from the concealment of employee misconduct. A U.S. Bancorp spokesperson denied the allegations.
The three former Washington Federal Bank for Savings board members were accused of giving the OCC false information in an attempt to hide embezzlement. They could face up to five years in prison for attempting to deceive the OCC.
The special assessment to refill the Deposit Insurance Fund should be based on uninsured deposits after the failures of Silicon Valley Bank and First Republic Bank, House Republicans said.
The firms are increasingly seeking to integrate generative artificial intelligence into their products, and banks are potentially interested customers. But such efforts are costly, the risks are high, and "they want to make sure that they get it right," experts say.
In the wake of destruction across Maui, financial institution from in and outside of Hawaii are deploying support programs and donations for food and clothing.
Fannie Mae and Freddie Mac can likely withstand potential credit losses twice as high as last year's in the latest scenario, but they are at more risk of slipping into the red.
Jay K. Oberg, a 32-year veteran of the Comerica Bank and a top deputy to CEO Curtis C. Farmer, plans to retire in December 2024.
Right now it's every bank for themselves when it comes to translating financial disclosures into languages other than Spanish. The process comes with a number of challenges, such as ensuring all customers can understand the information despite nuances in the different Chinese dialects.
A regional director of the National Labor Relations Board has determined that the bank illegally imposed a rule prohibiting employees from distributing pro-union literature unless management first approved it, according to agency spokesperson.
The product, which is both popular and controversial in consumer financial services, is attracting interest from merchants that don't want to pay high interest for a traditional loan.
Through the power of digital technology and artificial intelligence, regulators around the world could revolutionize the way banks' call reports are filed, providing them with real-time information.
UBS Group AG decided to end an agreement with the Swiss government to cover losses it could incur from the rescue of Credit Suisse, a sign that the mammoth integration is on track and the stricken lender's assets might be less troublesome than initially feared.
Profit in the first half of the year at the 11 Home Loan banks already exceeds 2022's total.
UMB Financial hired an outside company to provide customer service in connection with some of its credit cards and debit cards. In a lawsuit, the Missouri bank alleges that the vendor suddenly stopped performing its duties, and that the bank's own employees had to step into the void.
"Smart" contracts enable the Chicago-based trust bank to carry out deals without intermediaries, while archiving details on transactions that can be useful later. Experts say other banks could follow despite the complexities of cutting-edge technology and the risk of being hacked.
The company is rolling out a special-purpose credit program to help address what it describes as "the biggest barriers to achieving homeownership." Such programs are gaining popularity among banks.
After eight years leading one of the nation's most prominent Black banks, Michael Pugh will become chief executive of the Local Initiatives Support Corporation.
Citizens Bank of Edmond in Oklahoma, in conjunction with the digital-banking platform Narmi, recently launched an account-opening process that occurs completely online. The project, completed in less than three months, could be a model for community banks that want to innovate but fear being a low priority for vendors.
The court ruled that the Federal Reserve did not have to provide information about other banks that had applied for master accounts.
Artificial intelligence can and should be integrated into the business of banking, but with adequate safeguards in place to mitigate the technology's potential vulnerabilities.
Corporations are leaning harder on virtual cards as post-pandemic business travel ramps up amid hybrid work arrangements, according to a new Mastercard survey. Visa separately has extended its collaboration with virtual-card technology provider Conferma Pay.
During the recent banking crisis, both businesses and wealth management clients moved their money out of banks. Commercial deposits have since recovered, but those in wealth accounts continue to decline amid fierce competition from both inside and outside the banking system.
The fintech's second-quarter results showed narrowing losses as well as membership and revenue growth, even as it took on marketing expenses and paid a data breach settlement.
The Wilmington, Delaware, bank announced Tuesday that it had purchased Bell Rock Capital. WSFS' management said that legal troubles involving that investment advisory firm's founder won't affect the transaction.
Fraudsters are using sophisticated skimming devices to steal more card data — and they aren't afraid to encroach on bank property to do so, according to new data from Fair Isaac Corp.
The Federal Reserve issued fresh policy guidance around stablecoin issuance, distributed ledger technology and fintech partnerships. Legal and policy analysts anticipate a further chilling effect on bank engagement with so-called novel activities.
As part of its resurrection plan, the terminal maker will pursue financial inclusion and growth markets for ATMs as it prepares for its relisting on the New York Stock Exchange.
The $1.6 billion-asset company said in a press release Wednesday that its directors "voted to terminate" Kevin Lycklama's employment. Dan Cox, chief credit officer, was named as acting president and CEO.
The Seafarers International Union sued Bank of America's senior managers and board alleging breach of their fiduciary duty in managing a prepaid debit card program that distributed unemployment benefits during the pandemic.
The deal with private equity firm KKR follows an earlier announced sale of $1.3 billion in medical office loans. The Columbus, Georgia-based company has said it's "proactively optimizing the balance sheet" to position itself for long-term growth.
Senate Banking Committee chair Sherrod Brown, D-Ohio, and other committee Democrats told the Federal Reserve that the agency isn't considering financial stability enough in its review of bank merger applications.
The nearly $81 million plan to buy Community Financial Group in Spokane, Washington, would mark the 13th acquisition in the past decade for Glacier. The Montana-based bank has more than tripled in size during that time.
In global news this week, Microsoft is working with the London Stock Exchange Group on artificial intelligence, Apple's mobile wallet debuts in Vietnam and more.
Bank of New York Mellon, U.S. Bank and others are looking at how the Federal Reserve's instant settlement network could safely speed up routing, payroll and billing.
The real threat is from undercapitalized banks, and regulators must require large banks to have enough capital to eliminate that threat.
The Federal Reserve has outlined the process state member banks must follow before issuing, redeeming or holding stablecoins. The agency also says it will create an examination process to monitor novel activities.
The Alabama bank is rolling out an online platform for corporate clients to manage billing-related communications with their own customers.
Moody's said higher funding costs, a potential decline in bank capital and growing risk in the commercial real-estate industry prompted many of the downgrades.
The payment giant's entry into the stablecoin market is expected to renew the debate over the appropriate regulatory oversight for digital tokens. It could also have ripple effects in areas such as the debate over instant payments.
Goldman Sachs told Sen. Elizabeth Warren, D-Mass., that it made $60 million on the purchase and sale of part of Silicon Valley Bank's loan portfolio.
The release of two malicious language models — WormGPT and FraudGPT — demonstrate attackers' evolving capability to harness language models for criminal activities.
Moody's decision to downgrade some banks' bond ratings isn't great news, but life will go on. The bigger and more difficult problem is shoring up U.S. sovereign debt ratings in the long-term.
Seven of the 11 largest credit unions in the country by assets experienced a year-over-year drop in earnings in the second quarter, with increased deposit costs being a primary culprit.
Bankers say regulatory burden, rising costs and intensifying competition will reignite a drive for scale and spur dealmaking provided interest rates level off and the economic outlook improves.
U.S. consumers set a new record during the second quarter, as card debt reached $1.03 trillion. Bankers say a healthy job market has allowed consumers to keep making their monthly payments, but they're also on guard about the impact of the upcoming resumption of federal student loan payments.
Many small-business lenders have less than 18 months to figure out how to gather and report on an extensive array of data.
Despite faster payments' momentum, fragmented systems and cash's resilience continue to hobble cross-border peer-to-peer remittance speed, says MoneyGram CEO Alex Holmes.
Under settlements with the SEC, Wells Fargo and BNP Paribas will pay millions of dollars in penalties for employees using unofficial communications like WhatsApp. In all 11 firms agreed to pay penalties, while the CFTC took separate actions.
Firms that had ratings cut included M&T Bank, Webster Financial, BOK Financial, Old National Bancorp, Pinnacle Financial Partners and Fulton Financial.
A federal judge's decision to bar the Consumer Financial Protection Bureau from enforcing a small business data collection rule pending the outcome of a Supreme Court case could give banks an opening to block a pending $8 late fee rule as well.
Texas State Bankshares has agreed to buy Estrada Hinojosa & Co., one of the nation's biggest municipal underwriting and advisory firms.
Activity in the primary market kicked off with a number of banks announcing debt deals overnight, including BNP Paribas, which became the first European bank to sell additional tier 1 notes in U.S. dollars since the writedown of Credit Suisse securities.
Ybarra, who leads the megabank's sprawling institutional clients group, plans to depart in the first half of next year. Citi says it's assessing how to allocate his responsibilities.
The payment company's sizable audience and existing technology differentiate it in a market that is otherwise dominated by startups.
The Vancouver, Washington, company disclosed in a regulatory filing that Kevin Lycklama was under investigation. It elaborated only to say that the matter did not involve the bank's financial condition.
Deployments picked up speed during the pandemic, and have continued into this year as commuter networks try to win back riders.
India's Unified Payments Interface has been an extraordinary success. The Fed should take careful note of how the system came to dominate the Indian economy.
Much of the industry is slimming down, with some banks calling it quits on riskier sectors and selling loans they no longer want. The trend is particularly prominent at regional banks that are preparing to comply with new capital rules.
The Federal Deposit Insurance Corp. issued a cease-and-desist order to Unbanked, Inc. — a cryptocurrency-focused nonbank — for making false claims about FDIC deposit insurance coverage on its crypto-related products Friday.
The board of the Home Loan Bank of San Francisco chose not to renew Teresa Bryce Bazemore's contract that ends in 2024, and has initiated a search for a new CEO.
First Foundation lines up James Britton as its next CFO, AI wealth-platform TIFIN announces additions to its executive leadership team and more in the weekly banking news roundup.
Sen. Elizabeth Warren, D-Mass., and Rep. Katie Porter, D-Calif., said that the Federal Deposit Insurance Corp. could do more to penalize banks that have downwardly revised their uninsured deposits as the agency looks to collect its special assessment.
The five-year employment agreement with CEO Bryan Jordan follows a failed acquisition effort by TD Bank. The deal suggests that Jordan is seen as critical as the Memphis, Tennessee-based bank charts an independent course in the coming years.
The rapid pace of innovation, reliance on a web of vendors and regulatory scrutiny means fourth-party risk is a more pressing consideration than in the past.
Kansas Banking Commissioner David Herndon told American Banker that his agency declared Heartland Tri-State Bank insolvent because of a "very sudden" event that crippled the bank financially.
Stax Payments appointed British financial executive Paulette Rowe as its new chief executive officer, making her one of the few Black women to lead a finance company.
When Bitfinex was hacked, Bitcoin was trading under $1,000. It had skyrocketed to $44,000 by the time the couple was arrested in early 2022, pushing up the value of the stolen assets to $4.5 billion, of which $3.6 billion was recovered by authorities.
A Texas judge dealt the Consumer Financial Protection Bureau a setback that has changed the bureau's calculus for furthering its near-term agenda. But an ambitious Supreme Court could also call all of the bureau's final rules into question.
Generative artificial intelligence could make it possible for borrowers to understand how their behavior reflects their creditworthiness, and create better outcomes for everyone.
The fintech is expanding a service that calculates sales taxes worldwide as more small businesses go international to seek new customers.
British banking app Revolut Ltd. will stop offering crypto trading services to US-based customers from September, citing market uncertainty and changes to the local regulatory landscape.
Coinbase Global, the largest U.S. cryptocurrency exchange, said its second-quarter loss narrowed and revenue exceeded estimates.
Russell Laffitte was convicted of conspiring with ex-lawyer Alex Murdaugh to defraud personal injury clients, including children.
The payment company's CEO views Afterpay, a buy now/pay later lender it bought two years ago, as a way to drive usage of Cash App and broaden consumer experiences.
Critics complain a bill sponsored by the leaders of the Senate Small Business Committee would reinstate a moratorium on participation in the SBA's flagship 7(a) program by nondepository lenders. Supporters of the bill argue that widening the program could invite more fraud.
The acquisition of Silicon Valley Bank helped push the bank's capital ratio to 13.4% in the second quarter, above its target range. But First Citizens said it would focus on absorbing SVB, and assess the impact of new capital rules, before restarting buybacks.
Regulators have been issuing real-time-payment requirements that push EU banks to modernize their core processing systems. U.S. banks may feel similar pressure from the movement toward real-time payments.
Their links to the Treasury have been considered a source of strength and still are, but less so, according to one rating agency. Others disagree.
The Minneapolis company is issuing stock to the Japanese banking giant that previously owned MUFG Union Bank in order to repay part of a $3.5 billion obligation. The move will also boost a key capital ratio, which sagged after the deal was completed, but is expected to cut into U.S. Bancorp's earnings per share.
Critics of the proposed deal between the National Association of Federally-Insured Credit Unions and the Credit Union National Association say their combination could drown out the concerns of the groups' smallest members.
Two bank trade groups have asked the Consumer Financial Protection Bureau to relieve all banks from complying with its small-business lending rule until after the U.S. Supreme Court decides whether the bureau's funding is constitutional.
But a Zillow economist argues that there's plenty of evidence suggesting strong GDP and job growth had more to do with the increase than what Fitch did.
A group of House Republicans led by Rep. Young Kim, R-Calif., said that the Consumer Financial Protection Bureau doesn't have the authority to hold information discussions with the bureau's European Union counterparts.
BofA is the first large Wall Street bank to officially reverse its call amid growing optimism about the economic outlook.
Despite healthy second-quarter revenue growth, PayPal's stock fell Thursday amid higher-than-expected losses from merchant loans.
Despite big talk months ago, experts don't see a lot of political appetite to change bank oversight rules — or the deposit insurance system — in the wake of three large regional bank failures that happened earlier this year.
Critics of the Federal Home Loan banks fundamentally misunderstand the purpose and necessity of the system.
Federal Reserve Bank of Richmond President Thomas Barkin said the greater-than-expected easing in inflation in June may be an indication that the U.S. economy can have a "soft landing," returning to price stability without a damaging recession.
While financial markets wobbled after Fitch Ratings reduced the U.S. government's credit rating, analysts said the action should have little long-term impact, similar to a downgrade by Standard & Poor's in 2011. JPMorgan Chase CEO Jamie Dimon argued that Fitch's action "doesn't really matter that much."
The Seattle bank, which has lost about two-thirds of its market value this year, is also said to be considering raising capital and selling assets.
A Figure spokesperson said the decision to withdraw the banking charter application was to enable the company to focus on other areas of growth.
This is the third time the Wells Fargo has tapped the bond market in recent weeks. The bank previously raised $8.5 billion and $1.7 billion of bonds after the lender's second-quarter earnings beat estimates.
The Department of Housing and Urban Development is reviewing HSBC's lending practices in certain majority Black and Hispanic neighborhoods, the bank disclosed. The regions under scrutiny include New York, Seattle and several parts of California, according to the nonprofit organization whose complaint prompted the investigation.
The measures will make certain activities such as mortgages and small-business lending harder for banks, Dimon said.
Consumers with the Apple Card deposited more than $10 billion in Apple Card's high-yield savings account that Goldman Sachs provides, the technology giant said.
Harborstone Credit Union in Lakewood, Washington, plans to take over the Seattle Bank, which scuttled a deal to sell to BM Technologies last year.
While it's still relatively early to tell how much — if at all — the muni market will be impacted, Kara South, portfolio manager at GW&K Investment Management, said downgrades of certain municipal bonds are likely to follow.
The fintech lender says its loans are meeting a need for people living paycheck to paycheck that the mainstream financial community is not, and that its loans cost far less than subprime credit cards or payday loans.
Regulators remain skeptical toward digital assets in the wake of major crypto-industry partner-bank failures, but in the absence of legislative direction, oversight of crypto is largely left to the Securities and Exchange Commission. The SEC's approach has been aggressive, but its authority has been muddied by recent court decisions.
Investors should expect "consistency, predictability," says COO Tyler Wilcox, who is scheduled to take over for longtime CEO Chuck Sulerzyski when he retires next spring.
This week in global news: Ripple is working with the Pacific island nation of Palau on a stablecoin test, Klarna is dropping the Kosma brand from its open banking service, and more.
Competition in the earned wage access arena is leading to more innovation — and emphasizing the need for regulation, according to a new report from Harvard University researchers.
In 18 states, consumers are not allowed to use trained debt resolution professionals to seek relief from their creditors. That needs to change.
Seibly, a 35-year banking industry veteran, takes over the Jacksonville, Florida, online bank now that private equity investors have purchased it from TIAA.
Banks locked in funding by offering more enticing rates on certificates of deposit last quarter, but rebuilding liquidity came at a cost. Competition isn't dying down either, with a couple of credit unions floating 6% CD rates.
More than 1,000 users reported problems making payments on Tuesday before complaint volumes tapered around midday, according to DownDetector, a site that collects user outage reports. The internal network disruption comes on the heels of another Zelle outage JPMorgan Chase took responsibility for seven days ago.
The Pittsburgh-based regional is leaning heavily on ATMs as part of a de novo expansion strategy in the lucrative Washington metropolitan region.
After a quarter in which the institution helped the firm reap a record profit margin, the company followed rival Edward Jones in withdrawing its application.
The world's largest payment network is making changes to how it deals with merchants who want to charge customers extra when paying with a credit card.
The Federal Reserve's much-awaited Basel III proposal would raise capital significantly for the largest banks, a move that neither the international agreement nor the moment requires. Somehow that square is going to get circled.
Lawyers representing the man accused of killing technology executive Bob Lee are attempting to poke holes in the prosecution's case, questioning the motive and the thoroughness of the police investigation in what's likely a long-term strategy to raise enough doubt to exonerate their client at trial.
The Federal Reserve is leading the push for broader, more standardized risk-capital rules, yet some of its board members, other regulators and industry groups are uncomfortable with the proposal.
The top five community banks have more than $1.2 billion in combined farm loan portfolios as of March 31, 2023.
The governing bodies of the National Association of Federally-Insured Credit Unions and the Credit Union National Association have unanimously approved a merger agreement. Members are expected to vote on the deal later this month.
Flywire, Visa and Mastercard all entered partnerships that anticipate a post-pandemic recovery. But politics are still keeping them from getting deeper into the market.
Michigan State University Federal Credit Union and Nymbus teamed up to design a package of business banking tools with an eye toward credit unions, which historically have tread lightly into this space.
The decision to allow lenders to review only two credit reports for mortgage applicants will harm homebuyers with less than perfect credit.
Last year's racially targeted mass shooting at a Buffalo, New York, grocery store has renewed conversations about whether banks have a duty to help segregated, impoverished communities that were shaped in part by discriminatory lending practices. What do banks owe the Black community, and what influence could they have?
Median noninterest income at midsize banks rose 7.2% in the second quarter, exceeding expectations. Dallas-based Texas Capital stood out from the pack, reporting a large uptick in fee income thanks largely to its new investment banking platform.
The San Francisco company's student loan business suffered from the moratorium on federal borrowers' loans. But executives see a rebound ahead despite high interest rates dampening appetite for refinancing.
A pending deal between two sizable institutions in Minnesota could mark the end of a dealmaking drought, experts say.
Regulators noted the demise of Heartland Tri-State Bank involved an isolated problem. Industry observers cautioned against prediction of more failures to follow, saying second-quarter earnings show community banks generally remain in sound financial health.
The Federal Reserve said that banks reported tighter standards and continued weak demand for loans in the second quarter, extending a trend that began before recent stresses in the banking sector emerged.
A federal judge has temporarily stopped the Consumer Financial Protection Bureau from implementing its small-business data collection rule until after the Supreme Court rules next year on whether the bureau's funding is constitutional.
Gateway First Bank, a former nonbank home lender, rode the pandemic era's mortgage wave to No. 1 on American Banker's latest list of top-performing banks based on full-year 2022 data. Now it has to cope with the housing market slowdown.
The top five community banks have more than $670 million in combined home equity loan portfolios as of March 31, 2023.
Its One Ally strategy is meant to help the bank with personalization and cross-selling.
While talks between House Financial Services Committee Chairman Patrick McHenry, R-N.C., and ranking member Rep. Maxine Waters, D-Calif., fell apart on stablecoin legislation, crypto anti-money-laundering bills quietly moved forward in the Senate.
More than half of the eight-member Partnership for Carbon Accounting Financials by Barclays and Morgan Stanley voted for disclosing just 33% of so-called facilitated emissions, according to a person familiar with the process. Two members of the group voted for 100%.
In July's roundup of American Banker's favorite stories: A Zelle outage at JPMorgan Chase could cause headaches for other banks, talking points for understanding FedNow, the Elkhart, Kansas-based Heartland Tri-State Bank is shuttered by the Federal Deposit Insurance Corp. and more.
U.S. financial institutions should look to the U.K. for tips on fighting real-time payments fraud.
Payment companies hope the government-backed rail could spur both domestic and international growth for instant settlement.
The top five banks and thrifts have more than $12 trillion in combined total assets as of the end of Q1 2023.
Cloud giants are making major investments in generative AI and large language models. Their financial services clients are mostly in test-and-learn mode.
Dream First Bank of Syracuse, Kan. is assuming all deposits and most of the assets of Heartland Tri-State Bank of Elkhart, Kan. following a purchase and assumption agreement with the Federal Deposit Insurance Corp., representing a $54.2 million hit to the Deposit Insurance Fund.
The Federal Deposit Insurance Corp. this week launched the sale of an $18.5 billion loan portfolio from the failed bank, a pool of debt tied to major private equity and investing firms.
The advance has helped the group pare its declines this year to roughly 10%, easing an earlier drop of as much as 33% following a string of regional bank collapses, including Silicon Valley Bank in March.
The top five banks and thrifts have more than $7 trillion in combined total deposits as of the end of Q1 2023.
Figure Technologies laid off 90 employees this week, or about 20% of its staff, while it's also interviewing bankers in advance of a planned initial public offering for its lending business next year, according to documents reviewed by Bloomberg.
Consumer advocates are protesting specific risk-weighting changes affecting borrowers with lower down payments. Also, broader increase in requirements may discourage depository holdings of servicing.
Dime Community Bancshares tapped insider Stuart Lubow as its next chief executive; BayFirst Financial announced the appointment of Scott McKim as chief financial officer and more in the weekly banking news roundup.
The U.S. government wants to intervene in JPMorgan Chase's fraud lawsuit against Frank founder Charlie Javice, asking a federal judge to halt pretrial information exchanges until she has been tried on criminal charges.
Oregon Community Credit Union in Eugene is seeing employee productivity and satisfaction increase, but is still wary of declaring the program a success.
The new rule sets a nationwide standard for disclosing all "material" breaches within four days — much sooner than many state-level disclosure rules.
Citing issues that arose during this spring's bank failures, the central bank and other agencies urge depositories to ensure they are ready to borrow at a moment's notice.
Large financial institutions have "meaningful but manageable" loan volumes to industries that are most likely to see declines in output and profit after climate-friendly regulations take hold, new research shows.
Dimon had taken a keen interest in PacWest since April, when the California lender became engulfed in the broader turmoil hitting regional banks.
Big Poppy Bancorp has applied to the Federal Reserve to acquire up to 24.99% of Summit State Bank. Both institutions are headquartered in Santa Rosa. Combining them would create the city's biggest bank.
Leslie Brock, chief of the AG's public finance division, sent a July 26 letter to lawyers who work on bond deals in Texas saying that officials are studying whether Wells Fargo has a practice or policy that "discriminates against a firearm entity or firearm trade association."
In her day-to-day job directing activities at the card network's Start Path accelerator, Sabrina Tharani helps nurture companies that are developing new payments products and services.
Business cards provide a tactile experience that digital forms of communication do not replicate. They offer a tangible reminder of a discussion, which can be far more memorable.
Centerbridge Partners and Warburg Pincus said they would invest $400 million in Banc of California in conjunction with its purchase of PacWest. The private equity injection was made possible through reverse accounting, which used Banc of California's balance sheet to value the transaction.
The Federal Reserve released its list of large bank capital requirements based on the results from this year's stress test. While overall capital obligations will decline, some firms will have to hold more capital.
The bank hasn't explained why person-to-person payments, bill processing and account-transfer services went down for parts of two days this week. But observers suspect glitches in its legacy systems could occur at other financial institutions and increasingly affect real-time payment networks.
Despite a sharp drop in spending and rising delinquencies during the second quarter, the issuer's stock rose on news of lower debt, rising deposits and a new private-label partnership with Dell Technologies.
The Hicksville, New York, company says its deposit base is stable and poised for growth four months after its acquisition of the failed Signature Bank, some of whose depositors fled to larger banks. Private bankers — including new hires from another failed bank, First Republic — are trying to win back lost deposits.
Federal Reserve Board Gov. Phillip Jefferson joined three other board members in supporting a notice of proposed rulemaking, but expressed concerns about the economic impact of the changes.
Mastercard has told payment processors and banks to stop allowing marijuana transactions on debit cards, in a blow to the struggling cannabis industry and a boon to transparency in the banking system.
Scott Sanborn said his company is committed to balancing profitability and growth, and sees a lot of potential in new products such as credit cards.
Like many of its peers, the bank is grappling with higher deposit costs and net interest margin pressure.
There's divergence of opinions between one more rate hike this cycle and no further actions.
Michael Miebach, the card network's chief executive, discussed his plan for competing against the Federal Reserve's new real-time settlement system.
The challenger bank and fintech lender will use its first acquisition to expand its point-of-sale financing strategy into another vertical.
The two Trump-appointed governors expressed skepticism that the increased capital requirements for regional banks were necessary to keep the banking sector resilient.
The monitoring, which is already in place in the U.S. came after a month-long consultation with U.K. employees.
The European Central Bank will stop paying banks for the money they are required to keep at the institution as a minimum reserve, a surprise move that could cut billions from lenders' interest income.
The FDIC proposed raising capital requirements for banks with $100 billion or more in total assets gradually over the next five years. Republican appointees on the board opposed the rule as excessive and impetuous.
The credit card swipe fee bill won't be in the defense spending package now, but the bill's Republican co-sponsor believes that it will receive a vote soon.
The Wilmington, North Carolina-based small-business lender is prepping a wider rollout of the business checking account it introduced in the first quarter. Chairman and CEO Chip Mahan said the move will allow the company to "nip at [its competitors'] edges as their customers feel less appreciated."
Following the difficulties of Silicon Valley Bank and Signature Bank this spring, banks are approaching the emergency lending facility more proactively, the Federal Reserve chair said.
The regional bank said metropolitan economies across its central and western U.S. footprint are resilient, and new loan opportunities are abundant. Trepidation among competitors, too, is creating openings for the Oklahoma bank, its CEO said in an interview.
Elon Musk's original X.com was an internet bank that became part of PayPal. Musk wants to bring X back to its banking roots, but the market may have moved on.
Treasury Department Assistant Secretary for Financial Institutions Graham Steele also spoke favorably of capital changes set to be proposed by banking agencies on Thursday.
Stock markets have shot up as investors grow hopeful that the United States will avoid a recession. But nearly 3 in 4 community bankers are less optimistic that the Fed will achieve its mission of reducing inflation without causing a downturn, a survey from IntraFi found.
Travelers in China can now add Visa and Mastercard to WeChat Pay and Alipay, providing a boost for the country's tourism industry as it tries to recover from the pandemic. Additionally, British regulators may delay plans to tighten the rules for by now/pay later lenders, partly based on concerns that some of the largest lenders may depart the market.
A rising payments star — and photographer — is helping the card network reach content creators and new entrepreneurs.
The bank's chief technology officer is testing several ideas for using advanced AI to improve processes and customer experience.
The Bank Policy Institute and American Bankers Association want the Federal Reserve to conduct a public review process when determining scenarios for the annual exams. They also want more information on the test's internal models and formulas.
As we recognize National Disability Independence Day, it is a moral and ethical obligation to ensure that financial institutions remove barriers that hinder the financial independence of individuals with disabilities.
Alison Rose stepped down after the British government, the UK lender's largest shareholder, signaled she had lost its confidence after a political dustup.
Elon Musk's grand vision is to turn Twitter into a one-stop shop for financial services. It's hardly the first time a tech giant has sought to muscle in on Jamie Dimon's turf.
CEO Ryan McInerney touted the growth of Visa Direct and unveiled a fraud-scoring service called RTP Prevent, which is powered by artificial intelligence, while discussing the card network's earnings for its fiscal third quarter.
American Banker is proud to recognize, in its third annual Most Influential Women in Payments, Next, the women under 40 who have demonstrated expertise, leadership skills and an ability to adapt in an ever-changing payments industry.
Post-merger Banc of California will target "in-market relationship banking" by focusing on treasury management services and loan growth to boost "low-cost" commercial deposits, CEO Jared Wolff said.
Greenwood Financial and The Gathering Spot, a network of private clubs for the Black community, say they have reached an agreement after six months of lawsuits.
BMO Financial Group will enable payments, hold deposits and more for Grounded Technologies, a company that sources funding for banks from a diverse mix of asset managers.
A hefty advertising budget combined with a worldwide pool of potential members has now pushed Navy FCU beyond the 13 million-member mark, substantially larger than its nearest competitors.
The $417 million agreement would give Richmond, Virginia-based Atlantic Union Bankshares "the critical mass" it needs in its home state and neighboring North Carolina, according to CEO John Asbury. He and his counterpart Jeff Haley at American National Bankshares in Danville, Virginia, describe each other as longtime pals.
During the company's second-quarter earnings call, CEO Jim Ryan acknowledged employees' "resiliency and their commitment to supporting one another" after a gunman opened fire on a Louisville, Kentucky, branch in April.
With the introduction of FedNow, the Federal Reserve is out of good reasons not to mandate that banks process payments by the fastest means available.
A report by the Public Company Accounting Oversight Board raised concerns about declining audit quality across the accounting industry for a second consecutive year. The report found instances of firms using insufficient testing and inadequate support for audit conclusions.
JPMorgan Chase, Barclays, Citigroup and others will face a class-action suit over allegations of foreign exchange manipulation.
Storms earlier this month crippled local communities in the Green Mountain state. Banks, which have had to close branches or open alternative ones, are offering flexible loan repayment options and working with municipalities to finance the rebuilding of infrastructure.
Concluding the industry faces years of upheaval, BlackRock is poised to become a bigger buyer of assets that banks unload to improve their capital and liquidity.
The Office of the Comptroller of the Currency levied the civil money penalty against American Express National Bank for failing to implement adequate call-monitoring controls and track customer complaints with a third-party affiliate.
Evidence from the implementation of the 2009 CARD Act shows that warnings about higher interest rates and other unintended consequences don't square with reality.
As banks and merchants gear up for instant settlement, the merchant acquirer is using artificial intelligence to sharpen the accuracy of its fraud detection.
Bank loyalty platform provider Wildfire Systems unveils a tool that could enable banks to earn revenue from merchants when customers click on personalized offers embedded in content via generative AI.
Credit metrics are deteriorating as more cardholders fall behind on their payments. But bank CEOs detect few causes for alarm, saying they plan to stay in growth mode since most consumers have stayed current.
Banks may be trying to pay less of a special assessment to recoup the losses to the deposit insurance fund after the regional bank crisis this spring.
Bankers say it isn't a crazy notion for a bank to charge multiple NSF fees on the same transaction because merchants often resubmit transactions for payment a second time, and the bank has no way of knowing if or when that happens.
The deal is expected to close late in 2023 or early next year and be immediately accretive to the combined company's earnings.
Valarie Ivester, assistant vice president of indirect strategy and development for Greater Texas Credit Union, has helped update strategy from the start of the pandemic through the recent chip shortage.
The U.S. division of the Swiss bank will have to pick up the tab for its one-time rival, which it acquired in a government-brokered deal earlier this year.
One security researcher said the total number of consumers who had data stolen in MoveIt breaches exceeds 20 million, and more are expected to be reported.
Nearly three out of five respondents to a Bloomberg survey said they would most like to work for the CEO of JPMorgan Chase. That was enough to make Dimon the most popular choice out of a list of the leaders of six big banks.
The license allows New York-based Citigroup to separate the institutional and private bank businesses from its consumer, small-business and middle-market operations in Mexico.
American Banker's annual list reviews the financial results for the best-performing large institutions.
The era of banks being customers' sole source of financial services is long gone, and regional banks need to accelerate their adjustment to that fact.
The card brand participated in a $72 million funding round in Thunes, expanding both an existing collaboration and a larger initiative to support mobile money networks.
The regional bank told analysts that it has studied how much debt it would need to raise based on an effective post-reform capital floor of 6% of risk-weighted assets, and has determined that that increase in capital would be manageable.
Spring Development Bank aims to use blockchain technology to support funding for the exiled government and provide financial services to the civil war-torn population.
The Dallas-based company, which saw $3.7 billion of deposits withdrawn after Silicon Valley Bank failed, now predicts average deposits will fall 14% to 15% compared with last year. However, the pace of outflow is slowing, say the bank's executives.
Amazon expands "palm payment" at Whole Foods, Toast reverses 99-cent restaurant-order fee, Plaid expands open-banking reach and more in the weekly banking news roundup.
The company says young consumers, steady credit quality and a robust travel recovery will offset a weaker economy for small businesses.
Broker-dealers, investors and clearing companies, among others, will have to upgrade their operations and technology to meet SEC regulations.
The National Labor Relations Board has found that the Wisconsin-based insurance provider withheld certain employment information during the collective bargaining process. The company and its workers' union have been locked in contentious contract negotiations.
The Ohio-based regional bank continued to drive loan and deposit growth in the second quarter. But lending activity is expected to ease while funding costs remain high, tempering net interest income expectations for the full year.
The Federal Reserve Board of governors will discuss the much anticipated capital changes on Thursday afternoon.
The Minnesota Bankers Association and Lake Central Bank jointly filed a lawsuit against the Federal Deposit Insurance Corp. over its nonsufficient funds fee rules' inclusion of "unfair or deceptive acts or practices" violations in its policy.
Michigan State University Federal Credit Union will open five branches in the Windy City to serve the more than 10,000 members and potential members living there. This marks the first time that the institution has expanded beyond its home state.
A U.S. senator claims that proposed new rules would allow bank supervisors to oust bank executives over things as vague as "climate risk" standards.
FNB Corp. and Bank of America are experimenting with ways to meld the benefits of account-opening in a branch with the efficiency of online.
The Pasadena, California, bank expects to spend more on hiring this year, including the addition of some former Silicon Valley bankers. Anticipated loan growth and an uncertain economic horizon prompted the bank to increase reserves for bad loans.
Executives of the regional bank say they are zeroing in on its most profitable business lines and moving away from one-off customer relationships that don't generate as much revenue.
The Cincinnati bank said that it plans to reduce originations in the segment by 15%. It is leaning into businesses that provide an opportunity to build deeper customer relationships.
Chairman and CEO Chris Gorman said Key's reduction efforts were prompted by an expectation big banks will be expected to operate with significantly lower loan-to-deposit ratios going forward.
The National Credit Union Administration voted unanimously to make it easier for boards of directors to ban problematic members.
The Columbus, Georgia, bank is selling a $1.3 billion portfolio as part of a plan to pay off higher-cost funding. Though there are rising concerns about the office sector, Synovus said the loans it's offloading have pristine credit quality.
Discover Financial Services' stock tumbled after revealing a new FDIC consent order regarding consumer compliance. Separately, the financial institution also copped to misclassifying certain credit card accounts into its highest merchant-pricing tier beginning in 2007.
The Crypto-Asset National Security Enhancement and Enforcement Act would increase regulatory oversight of cryptocurrencies traded on public blockchains and guard against money laundering and sanctions evasion, particularly by holding the largest crypto investors accountable for compliance.
Both Senate Banking Committee Chairman Sherrod Brown, D-Ohio, and ranking member Tim Scott, R-S.C., said they would consider what reforms "if any" are necessary post Silicon Valley Bank failure.
The Federal Reserve says its findings related to "unsafe and unsound practices and violations" of previous agreements with the central bank related to the lender's prior relationship with the Estonian branch of Danske Bank.
The bank said it would continue to make multifamily loans to current customers that have depository or other bank relationships. The move comes amid rising concerns about the impact of high interest rates on the apartment sector.
Cincinnati-based Fifth Third Securities is the seventh firm charged by the Commission for failing to comply with the appropriate disclosures in connection with the limited offering exemption.
The Small Business and Entrepreneurship Committee voted nearly unanimously to advance a bill that would halt a plan by the Small Business Administration to open up some of its loan programs to fintech companies.
The launch of FedNow, the Federal Reserve's instant-settlement system, raises many questions for banks, card networks and fintechs regarding costs, routing and other concerns.
Officials at the central bank have been discussing a real-time payment system for a decade. Work on FedNow began in 2019.
This is no time to haphazardly pile financial regulation and additional costs on an American economy that seems otherwise set to avoid the catastrophes predicted just last year.
Fintechs are expanding the definition of BNPL financing to include many longer-term, higher-interest loans that fall into a legal gray area, according to new research.
Rohit Chopra, the director of the Consumer Financial Protection Bureau, weighed in on credit card late fees, an upcoming open banking rulemaking and the chaos that could result if the Supreme Court defunds the agency.
The Consumer Financial Protection Bureau celebrates its 12th anniversary on Friday, prompting Director Rohit Chopra to discuss the agency's work including a proposal to set credit card late fees at $8 and the upcoming Supreme Court case to defund the bureau.
The Phoenix bank was one of the institutions hit hardest in this spring's banking crisis, but deposits rebounded in the second quarter. The bank's earnings results were what "we were all hoping for," one analyst said, sending its stock up 8%.
The Buffalo, New York, bank said that share repurchases are off the table, even though the amount of incremental capital it's required to hold has declined from last year. Executives pointed to forthcoming revisions to risk-based capital rules, which are expected to hit midsize banks like M&T.
The recent conversion marked one of the final steps in the $8 billion acquisition, first announced in 2021. U.S. Bank still anticipates up to $900 million in cost savings and a breadth of opportunities to expand revenue from the transaction.
As the Senate debates this year's defense spending package, analysts say the highly partisan politics of this Congress, as well as the banking industry's lobbying, make it difficult for Sen. Dick Durbin's, D-Ill., credit card legislation to slip through this round.
Several community banks noted an uptick in problem loans in second-quarter earnings reports. Small lenders should brace for more of this, industry observers noted.
The regional bank said dozens of new hires give it a major presence on both coasts, and it plans to build out its team of advisors and its private banking products.
Some credit unions and banks are taking a step back from the U.S. auto lending market, but Ally CEO Jeffrey Brown said the overall sector remains healthy. Though credit is weakening, the loans that the company is making are bringing large returns.
Two of the three midsize banks that failed this spring were unprepared to access the Federal Reserve's discount window, limiting regulators' ability to inject cash at a pivotal moment. Regulators say that experience should be a wake-up call.
Brian Plum abruptly stepped down as president and CEO of the Charlottesville, Virginia, company last week. Blue Ridge also announced that it would not pay a dividend in the third quarter.
The Wall Street giant has more than $14 billion of real estate investments, and it took a $1.15 billion hit during the second quarter from writedowns of those bets.
After the Tennessee bank's canceled sale to TD Bank, it launched a marketing campaign that attracted tens of thousands of new customers. The next step is expanding these relationships, executives said during the company's second-quarter earnings call.
The managing director of Arjuna Capital led a successful shareholder activist campaign in 2018 that led to dozens of large companies reporting their true gender pay gap numbers. Now she is pursuing companies who are moving too fast with advanced AI.
While credit unions are being cautious with this lending line, some see opportunities to grow their commercial books amid setbacks at big-name banks such as Wells Fargo.
The top five community banks have more than $2.7 billion in combined first mortgage loans as of March 31, 2023.
The Financial Conduct Authority is developing new rules that tighten how financial firms can use social media, Swift and a group of banks have successfully piloted instant payments between different countries and currencies, and more.
U.S. financial services firms should be paying close attention to the innovative Pix Credit system that is displacing consumer credit cards in Brazil.
Michaela Diverio started her career in finance in 2007, and joined Barclays in July 2020 and runs the consumer and retail equity capital markets desk.
Banks are bracing for tougher requirements on operating subsidiaries in the U.K. as regulators debate how to best protect against financial contagion from failures abroad.
The nation's second-largest bank has weathered the Federal Reserve's rate hikes better than many others, but it's still at the central bank's mercy as deposit pressures continue.
Executives say Bank of New York Mellon can maintain its upbeat forecasts on net interest income and perhaps beat its expense-control goals. However, they warn deposits could shrink in the second half.
Both parties agree the registry's rules need to be more targeted, while Democrats decried a Republican push to cut the agency's funding.
Outgoing CEO James Gorman, who is set to become the investment bank's executive chairman, said he has no plans to ditch virtual annual meetings. He also argued that earnings should be reported twice each year, rather than quarterly.
The top five community banks have more than $1.8 billion in combined commercial and industrial loans as of March 31, 2023.
In the wake of the decisions to roll back affirmative action provisions within college admissions, many executives are looking for ways to continue championing diversity, equity and inclusion.
A lack of affordable starter homes, increasing homelessness and stubbornly high prices for the homes that already exist have created a pickle that only careful planning and political buy-in can solve.
More than two-thirds of Citi's U.S. commercial clients are using the platform, and a global rollout is next.
The House Financial Services Committee held a subcommittee hearing with senior staff from banking agencies, while the oversight branch of the panel questioned some large banks on their ESG efforts in asset management units.
U.S. regulators are examining how consumers finance health care spending, looking at practices used by Synchrony Financial's CareCredit unit and its competitors. But Synchrony CEO Brian Doubles said he's "very proud" of CareCredit, while downplaying the unit's involvement in the medical sector.
The claims against the card networks' fee structures may be intended as much for lawmakers as they are for a courtroom judge.
The Pittsburgh superregional reported lower second-quarter earnings as net interest income tapered and deposits fell from the previous quarter. CEO William Demchak predicted further weakening of loan demand and NII through the current quarter.
The brokerage firm reported that during the second quarter bank deposits fell 31% from a year earlier. But executives suggested that the worst is now over.
The Federal Reserve vice chair for supervision said regulators will adapt supervisory practices to account for advancements in machine learning.
Solopreneurs are the new engine of business growth in the U.S., and banks and financial services regulators need to recognize their importance.
Bank of America's second-quarter profit soared after its core Wall Street businesses exceeded analysts' expectations.
For large banks, the agencies wanted to go above the global standards for residential mortgages, as well as some business loans, to avoid giving those lenders a competitive advantage over smaller peers, according to another person familiar with the proposal.
The Wildflower Foundation is seeking to raise $10 million for its Sunlight Loan Fund, which supports teachers who want to provide broader access to Montessori education. U.S. Bank recently closed on the inaugural commitment to the fund.
The companies are both tapping the U.S. investment-grade primary market, kicking off a potential deluge of fresh bank bonds in the wake of second-quarter earnings.
In a data breach at OpenAI, some ChatGPT users were able to see other users' financial data. In other cases, users have invoked their dead grandmothers to access information that should have been sealed off.
Scully, who founded and then eventually sold Howard Bank, will help the Rockville, Maryland-based Capital expand its footprint in the Washington, D.C., metro area.
Republicans have urged the Supreme Court to gut the Consumer Financial Protection Bureau by tying its funding to appropriations. But regulatory experts say that a ruling against the CFPB would threaten the funding of other similarly-structured agencies including the Federal Reserve Board, the Farm Credit System and other regulators that are funded through fees or assessments.
Such concerns have taken on new importance with recent advances in artificial intelligence tools, which are "the most transformative technology of our time," Securities and Exchange Commission Chair Gary Gensler says.
Known for his personal style and his support of affordable housing, the former MBA president also earned an ignominious distinction as the face of the Financial Crisis.
Consumer Financial Protection Bureau Director Rohit Chopra will engage in informal talks with Didier Reynders, the European Commission's commissioner for justice and consumer protection, on artificial intelligence, buy now/pay later and digital payments.
An executive with the Federal Home Loan Bank of Chicago pushes back on a BankThink article criticizing the Mortgage Partnership Finance program.
Data-sharing runs through dozens of projects designed to generate revenue beyond the point of sale.
Tesla, which started its ABS program in early 2018, is repackaging a pool of leases on new electric vehicles manufactured by Tesla and originated through Tesla Finance into the securities.
Next week, the House Financial Services Committee will discuss bank regulator oversight bills, including one that would remove the Federal Reserve's Vice Chairman for Supervision position.
The New York megabank benefited duing the second quarter from strong revenue growth in its giant credit card business, which helped overcome headwinds in wealth management and investment banking. But executives indicated that the script could soon flip.
If regulators push forward with plans to strengthen capital requirements for banks with more than $100 billion of assets, the nation's largest bank says, the cost of credit would rise and more consumers could seek out nontraditional lenders.
A draft piece of legislation would strike the section of Dodd-Frank that sets up the Federal Reserve's top banking cop.
Experts and industry leaders said banks are pumping investment into technology that can connect information silos.
Visa wants to expand in-car payments tech; Citizens Financial installs president to oversee growing California market; undergrads win banking competition and more in the weekly banking news roundup.
The bank's allowance for losses on commercial real estate loans jumped to $3.6 billion in the second quarter — up 64% from a year earlier. The negative forecast could portend trouble for smaller banks that have bigger exposure to the office sector.
The correlation between capital and economic activity is tenuous. Still, some economists say now is a fraught time for mid-tier banks to try to raise equity.
The New Jersey institution has hired Jeanne Scungio, a veteran banker who ran First Republic Bank's New York operations, to oversee its expansion into the Big Apple.
American Banker's Allissa Kline speaks with Shaun Bisman and Kelly Malafis of Compensation Advisory Partners about the latest trends in bank CEO pay and what to expect for the rest of the year.
The average credit union member had saved $286 less in March compared to a year earlier. That was the largest per-member drop in credit union history, fueled by rising costs of living and more aggressive competition.
Isabella Guzman, the administrator of the Small Business Administration, skipped a congressional hearing called to discuss the wide disparity in the level of fraud calculated by her staff and a parallel examination conducted by SBA's Office of the Inspector General.
The private-equity firm plans to focus on innovation and acquisitions when it takes a controlling stake of the payments processor.
The SEC chairman's power grab is driving the crypto industry out of the U.S. Eventually, the courts will find that he has exceeded his authority.
Higher interest rates and larger card balances set the stage for an 11% jump in revenue from U.S. personal banking in the second quarter. That blunted the impact of a 78% surge in write-offs tied to consumer loans.
Executives now see Wells Fargo's NII rising roughly 14% for the full year, more than the 10% jump they had earlier projected.
JPMorgan Chase's revenue soared to a record in the second quarter, boosted by the Federal Reserve's interest rate hikes and its acquisition of First Republic Bank.
The Supreme Court's ruling on affirmative action in higher education has opened the door to challenges of diversity initiatives in the financial services sector, legal experts say. Internship programs for minority students could face scrutiny, as could efforts to increase workforce diversity.
The lawsuit against Prehired involves a relatively new product that consumer advocates say is akin to a student loan — and should be subject to far more protections.
The move reflects a larger shift in the banking sector, as firms develop technology to enhance performance and cut down costs.
The U.K. entrepreneur died from a rare form of bone cancer, with which he was diagnosed at the start of 2020.
With no settlement in sight, Spencer Savings Bank's case against a group of former depositors it says conspired with Larry Seidman to force a conversion appears headed for a courtroom battle.
Gacki, who has served since 2019 as director of Treasury's Office of Foreign Assets Control, will replace acting Fincen Director Himamauli Das. Her appointment comes as the Biden administration seeks to enforce sanctions against Russia and implement rules aimed at identifying undisclosed shell company owners.
The longtime chief executive of the Federal Reserve Bank of St. Louis will leave his post after 15 years to take an administrative position at Purdue University.
The implementation plan the Biden administration released on Thursday seeks to shift liability for data breaches onto "the biggest, most capable" entities. Does that mean banks?
The six biggest banks in the U.S. are expected to sell between $28 billion and $32 billion of new bonds after they report quarterly earnings, and regional banks — seeking to raise more capital — could be right behind them.
Five organizations representing large banks sent a letter to Federal Reserve Chair Jerome Powell requesting a long and thorough public review process for rule changes that are expected to be rolled out this summer.
A federal judge ruled that the Ripple Labs token is a security when sold to institutional investors but not the general public, a long-awaited decision that was widely hailed as a victory for the crypto industry over the SEC.
Prosecutors claim that from 2018 through June 2022, Mashinsky "orchestrated a scheme to defraud customers of Celsius Network LLC and its related entities," according to the indictment unsealed Thursday.
The business is deposit-taking and offers revolving credit cards as well as loans for small-ticket items. The potential sale could serve as a benchmark for other lenders considering selling their own consumer finance businesses.
American Express is turning to some unusual allies in its quest to gain popularity overseas: shoe-repair shops and bargain stores.
If the Supreme Court strikes down CFPB regulations by ruling against the constitutionality of the agency's structure, technological innovation will be harder for banks to achieve as regulatory clarity moves further out of reach.
Venture capitalists are increasingly keen on firms that can guide merchants through a maze of emerging processing options.
Sens. Cynthia Lummis, R-Wyo., and Kirsten Gillibrand, D-N.Y., unveiled their latest effort to regulate the U.S. cryptocurrency industry, placing greater emphasis on consumer protection following a string of high-profile company failures last year.
But the volume of activity for distressed properties is still lower than the historic norms, Attom Data Solutions said.
Eligible customers would receive a credit of up to $5,000 that can be put toward expenses like closing costs, or used to secure a lower interest rate. It's the latest example of a bank launching a program aimed at extending credit to minority borrowers.
Former Federal Reserve Vice Chair for Supervision Randal Quarles criticized his successor's plan to significantly increase capital requirements for big banks, saying it would needlessly hurt the economy.
Before a hearing in which Sen. Elizabeth Warren, D-Mass., said she would reintroduce legislation making it harder for large banks to merge, the Senate Banking Committee sent three Federal Reserve nominees to the full Senate.
For now, worries about more bank failures have faded. But in the wake of the recent industry turmoil, higher funding costs are expected to weigh on banks' second-quarter results.
A scorecard from the sustainable finance advocate Ceres found that federal agencies overseeing the financial system have adopted measures to account for climate-related financial risks but have not yet issued enforceable regulations.
Deborah Donnelly, senior program manager of talent and performance at BECU in Washington state, has prioritized training the next generation of professionals in each position she's held.
The Charlotte bank plans to use quantum computing to stiffen cybersecurity, run more advanced AI applications and create new commercial use cases alongside IBM engineers.
The plaintiff that brought the case on behalf of the state says the banks inflated interest rates through a private, invitation-only VRDO index that influenced SIFMA's weekly index.
Tom Drake is joining Wells from Barclays as a managing director in its mergers-and-acquisitions group focusing on health care services and medical-technology deals. Chris Norman, most recently at Citigroup, is joining as a managing director in M&A focusing on technology in San Francisco.
The Securities and Exchange Commission and the Federal Reserve have questioned prime brokers about the basis trade as well.
The company said long-time chief executive Chuck Sulerzyski would retire in 2024 and be succeeded by Tyler Wilcox, Peoples' executive vice president of community banking.
Federal Reserve Vice Chair for Supervision Michael Barr outlined his view for new capital standards this week. But unlike prior reform pushes, this package lacks clear champions in Congress.
Voters so far are lukewarm on the president's efforts to change the narrative around his handling of the economy, but the administration's bid to win the economic messaging war could cause Washington to come down more harshly on banks.
This week in global news, Lisbon takes contactless payments to the subway; U.K. politicians say AML actions rules are politically motivated; and more.
Accrue Savings' merchant-specific savings accounts, originally pitched as a way for consumers to fund major furniture and jewelry purchases, is finding a new market with vacationers.
The Kentucky company says its newly purchased equipment financing unit will strengthen its presence in the market for leasing office furniture, computers and other lower-cost essentials that customers will still buy in an unpredictable economy.
Limiting large-bank access to the system could have an unintended negative impact on smaller banks.
To avoid a third straight quarter of disappointing investors on earnings day, Goldman executives have been actively downplaying expectations for results that will be disclosed next week.
Canada's banking regulator is proposing to make it more costly for lenders to accommodate mortgage borrowers who stretch out their loans in an effort to limit housing-market risks in the financial system.
They're wary of deteriorating economic conditions and the bite higher interest rates could take out of profits, according to the latest index of small-bank executives' sentiments by the Conference of State Bank Supervisors. The index fell to its lowest level since it was created in 2019.
Management, in exchange, has agreed to assist company lawyers in potentially lucrative actions against firms they blame for BlockFi's collapse including FTX and failed crypto hedge-fund Three Arrows Capital.
Ally, Truist, Citizens and SoFi are among the banks that offer student loan repayment benefits. The recent Supreme Court decision striking down President Biden's loan forgiveness plan could give a leg up to companies that provide such assistance to their employees.
Louisiana-based First Guaranty Bancshares will no longer buy Lone Star Bank in Houston after its stock price has plunged roughly 49% this year.
The highest tier of vice presidents made 13% less, and all but the most junior associates saw their total compensation fall, according to a survey of about 250 U.K. bankers by global recruitment consultancy Dartmouth Partners.
In an amicus brief submitted to the Supreme Court Tuesday, the bicameral group of 132 Republican members of Congress argued that an appeals court was right to rule last year that the Bureau's funding system is unlawful.
JPMorgan Chase hired Silicon Valley Bank veteran John China to co-lead the business of banking venture capitalists and startups, part of the firm's growth strategy for the sector.
The biggest of the big banks don't like the Federal Reserve's new vision for bank capital, but the changes will hurt their regional peers more. Once again, the advantage lies with the megabanks.
At a hearing Tuesday, consumer advocates called for a ban on deferred interest credit cards, and CFPB Director Rohit Chopra echoed their concerns. The agency signaled that actions to combat unfair fees in the medical realm could be coming soon.
The announcement resolves the final outstanding order between Capital One and prudential regulators over its 2019 cyber incident.
The Consumer Financial Protection Bureau ordered Bank of America to repay $100 million to customers who were charged multiple penalty fees when their accounts did not have enough money to cover payments, as well as those who did not receive the credit card rewards they were promised. The bank was also fined for opening a small number of accounts without customers' authorization.
Sonata Bank is piloting a mobile bank account with fringe benefits for employees of franchise restaurants.
Leigh Brady recently took over as chief executive of SECU, the second-largest credit union in the U.S. Don't look for any mergers under her leadership, Brady said, but she will focus on branch expansion and improving SECU's use of technology.
Resetting allows CLOs to essentially cut the costs at which they borrow, leaving more money for holders of the riskiest and highest-returning part of the structure, the equity portion, after other note holders have been paid.
Guy Harris and Eric Hoffman joined the company's leadership team to help it manage an industrywide spike in suspect payments.
Mass arbitration is a fact of life in modern consumer finance litigation. Those hoping it will go away through court decisions or legislative change are primed to be sorely disappointed.
High interest rates could dampen demand for refinancing, which took a hit during the pandemic-era pause in federal student loan payments. "Curb your enthusiasm," one analyst said.
Adjusted for inflation, consumer spending has largely stalled after surging at the start of the year. Delinquency rates, meanwhile, are ticking up.
The acting comptroller of the currency says regulators are aligned on rule changes, but noted that forthcoming policy proposals are being driven by more than just recent bank failures.
Some of the biggest banks on Wall Street are expected to go to trial in Illinois next month to face allegations they inflated interest rates on bonds to finance public works.
A number of large banks, the Federal Reserve of New York and Swift participated in a proof of concept of a shared ledger that would allow cross-border transactions to settle instantly in U.S. dollars — with regulators literally in the loop.
Federal Reserve Bank of San Francisco president Mary Daly insisted that supervisory failures that contributed to the downfall of Silicon Valley Bank were reflective of directives handed down from the Federal Reserve Board of Governors, and made the case for 'agility' in bank supervision.
In a speech Monday, Federal Reserve vice chair for supervision Michael Barr said the few banks that would have to raise capital under the final Basel III capital rules would be able to do so fairly quickly and without reducing dividends.
The $4 billion-asset United Federal Credit Union partnered with the Nevada Housing Division to offer first-time homebuyers access to down-payment assistance.
In a letter to Senate Democrats, Senate Majority Leader Chuck Schumer, D-N.Y., highlights executive compensation and cannabis banking as priorities for the caucus in the coming month.
House Oversight Committee chair James Comer, R-Ky., and financial services subcommittee chair Lisa McClain, R-Mich., asked Federal Reserve chair Jerome Powell for more information to aid their investigation into the failure of Silicon Valley Bank in March.
New regulations on small-dollar lending are leaving consumers with few viable options when they need emergency access to cash.
The Cleveland-based regional bank recently announced a $20 million line of credit for Lendistry, a Los Angeles-based, minority-led community development financial institution.
The tech giant wanted to put the consumer first. This meant its banking partner was always second — and taking on more risk than most card issuers at a time of economic volatility.
Citigroup executive Jay Collins says the company is "absolutely interested" in arranging new deals in the market for debt-for-nature swaps, which allow countries to restructure their debt in exchange for promises to protect the environment.
We surveyed 164 professionals at banks and credit unions to find out their tech agenda for this year, including investment plans, tech priorities and thoughts on transformational tools. Here's what we found out.
JPMorgan Chase and Goldman Sachs are leading the financing, which will involve the private equity firm taking a 55% stake in the payments processor, while FIS retains the remainder.
Twenty lenders from across the country are participating in Underwriting for Racial Justice, a collaborative effort to develop new criteria that will enable marginalized borrowers to gain access to credit.
Organized criminals exploited the issue for several months in early 2022 before the company fixed the problem, according to the newspaper.
The proposal would bring companies cited for civil enforcement actions under its scope to bar them from doing business with the government-sponsored enterprises.
Some of the biggest names in banking have started using large language models to organize their institutional knowledge, but use cases like chatbots remain experimental.
The FDIC's New York regional office faced staffing shortages throughout its supervision of now-failed Signature Bank. Experts say more competitive wages, culture shifts and whistleblower protections could help regulators attract and retain talent and improve oversight.
California Bankers Association taps insider as next CEO, Spotify cuts off subscribers who use Apple's high-cost payments, Relay Payments backs auto-racing team and more in this week's banking news roundup.
Banks say more transparency is needed in the annual scenario testing regime to make capital planning more predictable. But, amid a flurry of regulatory reforms, the expectation is that capital requirements are only going up from here.
The Consumer Financial Protection Bureau, the Treasury Department and the Department of Health and Human Services released a request for comment on medical debt financing products. At the same time, the White House said that the agencies will explore whether efforts to sign up customers are breaking the law.
Deposits of Listerhill and Avadian credit union customers were compromised by fraud conspirators, one instance in a rise of card skimming cases across the country.
The top three fintech investors in the ranking have 27 combined strategic and corporate VC investments at the end of Q1 2023.
The acquisition of Malvern Bancorp, expected to close this month, would hasten First Bank's efforts to further fortify its footprint stretching from Philadelphia to New York City.
A recent breakthrough transaction demonstrates the promise of credit union sub-debt offerings for investors looking to enter the ESG space.
The sanctions were in response to violations of laws and regulations in areas including financial consumer protection, payment and settlement business and anti-money laundering obligation in the past years, according to China's central bank.
The bank is offering earned wage access, a product that can reduce overdrafts and employee retention, but which may someday run afoul of regulators.
A digital version of the British pound may feature a way to verify the holder's age and citizenship status, potentially smoothing the purchase of alcohol and tobacco and transactions with government agencies.
Under a written agreement, Quontic pledged not to distribute capital without the permission of its regulators. It's the third enforcement action in five years against the small New York-based bank.
Dan Kimerling, whose former company Standard Treasury was acquired by Silicon Valley Bank in 2015, shares his thoughts on what led to the bank's collapse, whether there will be a chilling effect on tech lending and if there is a future for niche banks.
Eligible borrowers would receive a credit for up to $5,000 to pay for expenses like insurance, taxes and closing costs. The program comes months after fair-lending advocacy groups criticized KeyBank for its low rate of lending to Black borrowers.
Long, founder and CEO of Custodia Bank, has pushed for digital-asset regulation in her home state of Wyoming. Now she's working on a national scale.
The payment processor Worldpay was originally supposed to be publicly traded. By taking the unit private and retaining a stake, FIS can remain competitive n merchant services.
Some of the world's largest banks found that digital dollars could be an effective way to improve domestic and cross-border payments, according to a unit of the Federal Reserve Bank of New York.
The Securities and Exchange Commission plans to hold a meeting next week to finalize the changes, which are meant to prevent the kind of outflows that occurred in March 2020 when the onset of the pandemic roiled markets.
A resilient U.S. economy, lingering inflation and comments from the Federal Reserve contributed to a 10-basis-point hike in the 30-year fixed rate, Freddie Mac said.
The Consumer Financial Protection Bureau wants to wipe out $9 billion a year in consumer costs by cutting credit card late fees to just $8. But consumer complaints about late fees remain low, and experts say that's because many first-time late fees are forgiven.
The company directed its bilingual team to steer customers away from products with no closing costs toward "predatory lending options" without disclosing the costs, in part by refusing to provide Spanish-language written materials, according to a lawsuit filed by current and former members of the company's bilingual mortgage sales team.
Lloyds Banking Group, Natwest Group, Bank of Scotland and others will use the artificial intelligence tool in preparation for new rules that will require them to compensate customers affected by "authorized push payment" scams.
The company's longtime chief executive, Mark Tryniski, plans to retire at the close of 2023. Dimitar Karaivanov, the current chief operating officer, will succeed him.
The top three fintech investors in the ranking have 42 combined VC investments at the end of Q1 2023.
AI and machine learning are the future of banking and financial services. Regulators and policymakers need to keep the pace.
(Private equity firm GTCR LLC agreed to buy a majority stake in Worldpay, the merchant-acquiring business of Fidelity National Information Services Inc., in a deal valuing the target at $18.5 billion.
Bonds backed by car loans made by U.S. Auto Sales and American Car Center, two used-car dealers that shut their doors earlier this year, have been veering into distress in recent weeks. Meanwhile, borrowers have been falling behind on payments.
The Federal Reserve's instant-payments rail may cut into card issuers' credit and debit card volume over time, but it could also help smaller institutions expand their services.
The Home Loan banks are failing to serve huge numbers of Americans because of their reliance on outdated credit scoring models.
So-called quantum key distribution is a type of cyberdefense that financial institutions think could help protect trillions of dollars of transactions from increasingly sophisticated hackers in the future.
As President Biden tries to revive a key campaign promise to provide widespread debt relief to student-loan borrowers after a Supreme Court setback, legal experts warn that he's likely to encounter a fresh wave of lawsuits challenging his authority to act without congressional approval.
Taylor Swift fans across Asia have flocked to sign up for United Overseas Bank's cards as the frenzy to get hold of the pop star's Singapore concert tickets heats up.
Synthetic fraud — which combines real and false identifying information — has been a niche variety of identity theft for some time. But recent advancements in artificial intelligence and people's access to it might bring it into the mainstream in a big way.
Banks know what they're looking for. Here are key ways to show them that you can bring it to the table.
The change comes as the Securities and Exchange Commission labeled the tokens as unregistered securities in its lawsuits against the crypto exchanges Coinbase Global and Binance Holdings in June.
The Supreme Court's decision to strike down billions in debt forgiveness could make it harder for millions of Americans to pay back other kinds of debt. It also threatens to further curtail lending in an already sluggish credit market.
Discussions began with the Federal Reserve after the central bank's annual stress tests projected more favorable results than the lender is forecasting. BofA is seeking clarity so it can proceed with its dividend plans.
JPMorgan Chase and Discover are among the firms developing new technology to allow more people to shop from behind the wheel.
One area of focus for the bank is using advanced artificial intelligence to detect business-email compromise. The payment messaging network Swift and online gambling host Caesars are also using AI to stop people from gaming their systems.
It's been a tough housing market for first-time homebuyers. To ease their pain, VyStar has launched Dream2Own, which provides a credit simulator that doesn't hurt these prospective borrowers' credit scores.
In Beijing, Yellen will meet with senior Chinese government officials to discuss the importance of responsibly managing the U.S.-China relationship, communicating directly about areas of concern, and working together to address global challenges.
In this annual list, American Banker examines key metrics of the 10 highest performing small regional banks.
California's bid to regulate EWA programs as though they are loans would harm workers, companies and the state's economy.
Higher capital requirements tend to drive certain lending activities away from banking and toward so-called shadow banks. How regulators shore up banks without driving their customers away is the source of a spirited philosophical debate in Washington.
Investors will get the chance to fill three director seats at the Philadelphia company, which last held an annual meeting in April 2021 and has been embroiled in a legal fight with a shareholder group.
Following regulatory stress tests, three midsize institutions expect to be required to maintain larger stress capital buffers. The reverse is true for four of the nation's largest banks.
The president said he would begin a new process to provide relief under the Higher Education Act and would also create a 12-month "on-ramp repayment program" that would help borrowers reduce the threat of default.
The KBW Bank Index gained more than 5% in June, marking its best period since January, before several high-profile bank failures.
The San Antonio bank says it will open 17 new financial centers in the Austin region by 2026. It's the latest step in a physical expansion strategy that has led to dozens of new branches in Houston and Dallas.
Wells Fargo leads $70 million funding effort targeting credit-challenged entrepreneurs; PayPal adds Tap to Pay for Venmo, Zettle; Amex names new CFO to succeed retiring veteran finance chief and more in this week's banking news roundup.
The card brand's Multi Token Network supports transaction authentication for blockchains and other new electronic payment options.
The changes, which are being discussed as part of a sweeping review by the Federal Housing Finance Agency, would amount to the most dramatic reshaping of the $1.6 trillion system in decades.
CCFNB Bancorp and Muncy Bank Financial, which said they were combining forces in April, have opted for a bigger rebrand.
With LIBOR's long-awaited sunset, the future of interest rate benchmarking must be defined by choice.
Some pandemic-related gains have been ceded to depositories, national numbers from last year's Home Mortgage Disclosure Act reporting confirm.
PeoplesBank and others have developed digital brands that cater to younger customers' demands for smoother technology and mobile experiences.
In June's roundup of American Banker's favorite stories: Attempts to steal consumer data target a growing number of banks, credit unions secure deposits outflowing from other financial institutions, Citizens recruits 50 former private banking employees of First Republic and more.
Yellen said that she sees diminishing risk for the U.S. to fall into recession, and suggested that a slowdown in consumer spending may be the price to pay for finishing the campaign to contain inflation.
Banks are simultaneously looking to shed their obligations under laws like the Community Reinvestment Act and begging the government for more support in the form of higher deposit insurance limits.
Sen. Elizabeth Warren, D-Mass., in a letter to the Consumer Financial Protection Bureau, challenged the idea that credit card late fees serve as a deterrent to delinquency, instead saying issuers told her office that some of them earn tens of millions of dollars collecting late fees.
The Federal Reserve's stress tests suggested that larger banks are prepared to handle a severe economic downturn, though regional banks fared somewhat worse than their big-bank counterparts. Banks are expected to start revealing their latest capital return plans on Friday.
Under a 2-year-old program, homebuyers receive grants of up to $5,000 for down payments and closing costs. JPMorgan Chase said the latest expansion — to some new 3,000 census tracts in 16 U.S. markets — may help an additional 1,000 customers obtain mortgages.
The Federal Reserve, Federal Deposit Insurance Corp., Office of the Comptroller of the Currency and National Credit Union Administration have finalized guidance on handling troubled debt.
The risk management firm Sardine is one of several tech providers trying to build partnerships with payment companies to thwart crooks that take advantage of the short window for instant settlement.
The list of 57 early adopters includes large banks like BNY Mellon, JPMorgan Chase and Wells Fargo, as well as large bank technology companies including Jack Henry, FIS and Fiserv.
Fidelity is the latest high-profile traditional-finance firm to join the race after BlackRock Inc. made a splash with its June 15 application for a spot ETF, which opened the floodgates for others to try their hand at it, as well.
The regional bank is expected to issue around three to five more bonds backed by its $11.5 billion loan book. Citizens earlier this month said it will halt new auto lending in partnership with dealers starting July 1.
Libor was never meant to become such an integral part of the financial system, yet it would eventually come to determine the cost of borrowing around the world, from interest-rate swaps and collateralized loan obligations to student loans and mortgages.
Banks and credit unions are often at odds, but when it comes to fighting the Consumer Financial Protection Bureau's proposed $8 late fee cap and changes to interchange fees, they have put their differences aside.
The technology that powers ChatGPT can sift through and even synthesize massive amounts of data, though it must overcome doubts over reliability, transparency and regulatory risk before it can be harnessed to conduct useful research.
Switzerland's decision to eliminate $17 billion of Credit Suisse's additional tier 1 debt as part of the government-brokered rescue of the troubled bank by UBS Group AG has made it a lot tougher for other Swiss lenders to issue those types of risky bonds, says a Vontobel Holding AG executive.
The demise of FTX, a prominent crypto exchange, late last year, has left the crypto industry grappling with the consequences and uncertainties left in its wake. As the crypto sector teeters on the edge of more forceful regulation, the aftermath of FTX's explosion has revealed deep fault lines within the industry and increased banks' already healthy level of caution towards the technology, especially after more crypto-aligned banks failed in 2023. The once-unified industry now faces a turbulent next few years. In this episode of BankShot, we delve into the implications of FTX's downfall and its lasting impact on banks, the crypto landscape, and the emerging path towards regulatory clarity and stability.
People love the convenience of nonbanks' financial apps. Regulators could make it much safer for them to share their data with third parties.
When consumers can't figure out how to discontinue a video-streaming app or other service, they sometimes initiate a merchant dispute — a costly process that the card network aims to curtail.
Bank of New York Mellon didn't think it would need to record on its balance sheet digital assets held in custody when it asked the New York State Department of Financial Services for permission to offer the service, according to a filing obtained by American Banker.
The legislation would have allowed nonbank lenders to charge more for consumer installment loans. Gov. Ron DeSantis, a Republican presidential candidate, explained his veto by saying that the bill might result in additional consumer indebtedness.
The Federal Reserve's highly anticipated stress tests indicate that all banks are sufficiently capitalized to weather an economic downturn, but midsize banks were among those with the lowest minimum capital levels.
Globally, deal values have fallen more than 40% this year to $1.2 trillion, according to data compiled by Bloomberg.
Dallas-based Texas Capital Bank believes virtual credit cards, offered through a new fintech partnership, can help small-business customers make their payment processes more efficient.
Younger customers want personalized engagement, including in their music playlists, experts said at American Banker's recent Digital Banking conference.
The payments and bank technology firm says its standalone NCR ATMCo will focus on "ATM-as-a-service."
A new inspector general report suggests that grifts were more pervasive than has previously been reported. The Small Business Administration, which drew blame in the watchdog report, took issue with the findings.
Sen. Elizabeth Warren, D-Mass., said bank regulators have been shortsighted in allowing banks to merge and should be tougher when issuing M&A guidelines.
So says Solidus Labs, a New York-based company that specializes in ways to monitor suspicious crypto transactions.
This week in global news, U.K. payment regs draw fire, Alipay expands, Italy considers a central bank digital currency and more.
The startup processes more than $10 billion of purchases annually and was among the first digital lending platforms in India to provide short-term working capital for small or family-owned merchants.
Vantage Bank of Texas will be allowed to add a new branch in Houston, but Fed Gov. Michelle Bowman said the episode highlights the need for new policies around assessing public commentary.
The Ninth Circuit Court reversed a prior ruling made in 2021 that dismissed the class action, thereby reinstating the litigation that claims the media giant's advertising platform allowed for redlining practices.
Wise bank managers make sure that they are training employees for their next roles, and creating a deep bench of versatile talent.
Cullen/Frost, Columbia, Synovus, Valley National and Associated all have relatively large exposures to the office sector, which has been hurt by the popularity of remote work. Their executives point to factors that offer protection, including the geographic composition of their portfolios and the types of buildings that serve as collateral.
About 90% of surveyed bankers said cybersecurity was their biggest worry, ahead of legacy tech and talent shortage issues.
Industry leaders cautioned the National Credit Union Administration against drafting new regulations to address the financial risks associated with climate change.
The 30-page receivership petition filed in federal court on Monday demands an immediate impounding of all assets of Las Vegas-based Prime Trust.
The watchdog claims that during internal testing, the company illegally processed $2.3 billion in mortgage payments.
The fintech's revenue has soared as interest rates jump to contain inflation. CFO Matt Briers discussed the firm's strategy to navigate the inevitable decline.
The bank hasn't managed debt sales in Texas since a measure took effect in 2021 that bars governmental entities from working with companies that "discriminate" against firearms businesses. BofA's "current risk-based framework and policies" can comply with that law, a lawyer for the bank has told the state.
New York is seeking to procure a supercomputer to run artificial intelligence systems and gain a deeper understanding of the technology for more effective regulation.
Bank of America says it will extend its branch footprint to Omaha, Dayton and Huntsville. The moves are part of an ongoing strategy to enter new markets even as the bank reduces its total branch count.
Bankers, traders and support staff in Credit Suisse's investment bank in London, New York and in some parts of Asia are expected to bear the brunt of the cuts, with almost all activities at risk, people familiar with the matter said.
A report from the Treasury Department's Federal Insurance Office urges state regulators to spruce up their toolkits for monitoring and mitigating the impact of climate change on homeowners insurance.
The Federal Reserve gave itself the power to raise capital requirements when risks are elevated to ensure banks can lend through the business cycle. But the rule hasn't been used, and it isn't clear it could ever work in practice.
A Florida pension fund is demanding the bank turn over files about a possible criminal probe into whether the bank violated federal law by setting up fake job interviews to meet in-house diversity guidelines.
When community lenders report second-quarter results next month, all eyes will be on deposit levels and funding costs. By extension, analysts expect more banks to roll out expense reduction plans to protect their bottom lines.
The allegation that Binance encouraged the use of location-obscuring technology so that it could illegally serve U.S. clients is a symptom of a broader problem for financial services companies.
The European Cental Bank recently urged banks it supervises "to speed up their downsizing and exit strategies by adopting clear road maps" and regularly reporting on progress, according to Andrea Enria, who leads the ECB's supervisory board.
The bank's subsidiary TravelTech is countering the many fintechs that are entering its market market.
The fintech Zepz has added a new remittance method with an FDIC-backed mobile bank account.
The heads of the Federal Reserve and Federal Deposit Insurance Corp. say upcoming capital proposals won't be implemented for years, but banks tend to move fast to get ahead of upcoming changes.
Measurements of financed emissions are currently plagued by differing methodologies and time lags in corporate climate disclosures, according to a new report by an environmental advocacy group.
The name change is being timed to the closing of the bank's sale to investors later this summer. Following an earlier acquisition, the bank's name was changed from EverBank to TIAA Bank in 2018.
The category shifted into high gear during the first quarter, but experts predict a severe slowdown based on a growing number of economic concerns.
Private equity and private credit shops are among the few firms with the capital and appetite needed to buy sizable amounts of consumer assets originated by bigger banks.
JPMorgan Chase, Regions Financial and TD Bank Group are among those deploying technology to level the playing field for customers of varied abilities.
The instant-payments rail, which was set to go live this month, has postponed its launch indefinitely. Experts say it's having trouble keeping the interest of the country's major banks.
Crown was the longest-serving board member of JPMorgan Chase, having been a director for the bank or its predecessor firms going back to 1991.
Goldman Sachs Group has started cutting managing directors across the globe as the firm reduces its headcount amid a deals slump, according to people familiar with the matter.
Small-business owners need more help from financial services companies when it comes to making major decisions about their companies' future.
Goldman Sachs Group plans to add Tom Montag to its board, enlisting a prominent alum at a time when discontent in the firm's ranks has spilled into public view.
Rising interest rates on loans, greater borrowing and higher fees on deposit accounts all contributed to the increase. "Altogether, this paints a picture of debt that could really start to strain the checkbooks of American families," said Meghan Greene, a researcher at the nonprofit organization that authored the report.
The Federal Reserve governor said regulatory response to this spring's bank failures should be targeted on key issues and emphasize transparency.
The legislation has support among Republicans, who hold a slim majority in the chamber.
After working for the Federal Deposit Insurance Corp. for a decade, Marc Minish was determined that he could open his own institution. Now he is the primary organizer of the proposed Nova Bank in Huntsville, Alabama, which has received conditional regulatory approval.
The KBW Bank Index and KBW Regional Banking Index have each fallen more than 4% this week and are set for their worst weeks since early May, when JPMorgan Chase agreed to acquire First Republic Bank following its failure.
The online game, CoastalWorld, introduces players to the bank's fintech and neobank partners.
While the vast majority of staffers are following the firm's rules for hybrid work, the moves are focused on those employees with persistent, unexplained absences.
Aite-Novarica, RBR rebrand as 'Datos Insights'; Singapore fines DBS, Citi for breaches in Wirecard scandal; the top-ranked employers for working fathers on Wall Street and more in this week's banking news roundup.
The German bank's New York branch was entangled with U.S. regulators and law enforcement agencies for more than a decade in connection with money laundering and sanctions violations.
A former employee of The Change Company, which is the largest non-traditional mortgage lender in the U.S., claims in a new lawsuit that the firm mischaracterized the race, ethnicity and income of its borrowers. The company says the allegations, which relate to the representations it makes to be certified as a community development financial institution, are meritless.
JPMorgan Chase expanded one of the most high-profile projects to bring blockchain technology to traditional banking, introducing euro-denominated payments for corporate clients using its JPM Coin.
Some of the firms include Sequoia Capital, the world's most prominent venture-capital firm, which got covered for the $1 billion it had with the lender. Kanzhun Ltd., a Beijing-based tech company that runs mobile recruiting app Boss Zhipin, received a backstop for more than $900 million.
The firm's web services unit is applying hosted technology to parts of transactions that take place behind the scenes in an attempt to reach smaller merchant acquirers.
We have the tools to address our housing challenges through a mix of regulatory reforms, policy changes, incentives and investment. What's needed is the will and leadership to put those tools to work.
New legislation from Rep. Sean Casten, D-Ill., would impose various requirements and consequences on large banks that don't have a chief risk officer. It follows the failure of Silicon Valley Bank, which left the job unfilled for eight months last year.
Zirtue will now let borrowers retrieve funds from MoneyGram locations rather than being limited to a bank account or debit card.
Ransomware gang Cl0p is currently threatening 50 companies with releasing data it stole from them late last month.
Private equity shops looking to fill out their 2024 associate classes were forced to do a second round of recruiting this year after initial efforts fell short.
Through May, there were 32 U.S. bank mergers and acquisitions announced, fewer than half of the 66 deals announced over the same span of 2022. But analysts say higher costs and more regulation could spur consolidation.
Groups interested in organizing new credit unions are faced with the challenge of raising the required capital without having a charter in hand. The NCUA's new provisional charter could help.
Under guidelines proposed this month, credit unions would see changes in the quality standards for computer-generated appraisal systems, along with when and how financial institutions and consumers can request reconsiderations of value.
As a result of the deleted records, the regulator said that JPMorgan could not come up with requested documents in eight SEC investigations and four other regulatory probes.
Nineteen Democratic lawmakers proposed a ban on buy now/pay later loans to finance semiautomatic weapons that would include levying hefty fines on companies that enable the transactions and dealers that accept them.
FDIC Chairman Martin Gruenberg announced that regulators will soon issue a proposed rule to finalize U.S. implementation of the most recent revisions to the Basel III capital framework. Among the expected updates are changes to capital requirements for banks with assets of more than $100 billion, three of which failed this spring.
The markets had a muted reaction to the Federal Open Market Committee pause on raising short-term rates a week ago, Freddie Mac found.
The Bank of Lithuania said it will start bankruptcy proceedings against Payrnet and intends to ask authorities to investigate possible criminal offenses.
The amount of distressed assets rose 10% in the first three months of the year, according to a new report from MSCI Real Assets.
Activist investor Abbott Cooper said he could continue his campaign against the Dallas-based company's management and board even if his candidate falls short in her bid to become a director.
Treasury's plan to overhaul the certification process for community development financial institutions will benefit the communities served by those institutions.
In its ongoing quest to diversify beyond bank account data-aggregation, Plaid aims to help fintechs and banks to block fraud by sharing data about stolen consumer identities via a fee-based consortium called Beacon.
CEO Jamie Dimon has called the AI initiative, which includes a vast hiring campaign, "critical to our company's future success."
A judge ruled this month that a decentralized autonomous organization, or DAO, can be held liable for violating commodity exchange rules. That squashes the notion that the decentralized trading model is enforcement-proof.
In an online commentary published Wednesday, the Atlanta Fed president said he agreed with the view that "the bar to justify further rate hikes is higher than it was a few months ago."
Brijesh Goel was convicted Wednesday of tipping off former Barclays Plc trader Akshay Niranjan about deals at Goldman.
The bank's $4.6 billion commitment is smaller in size and shorter in duration than a previous plan. It also pledged $9 billion to sustainable finance initiatives over the next three years.
The Consumer Financial Protection Bureau issued two reports analyzing banking and consumer credit trends in the South, where many rural areas are considered "banking deserts."
The environment for initial public offerings in the U.S. has surged since last September, and it's set to keep rising.
At the Milwaukie, Oregon, institution, total loans increased 16% in the first quarter from a year earlier. But President and CEO Aaron Goff predicted this would level off significantly for his credit union and the industry overall.
The chairman of the Federal Reserve told the House Financial Services Committee that no decisions have been made about regulatory changes, but whatever does come to pass will take time to implement.
Bank of America had a 55% increase in new clients in May, and the lender is planning to bulk up staffing to keep up with demand.
Philip Jefferson, a current Federal Reserve Board member, is President Biden's nominee to be vice chairman of the central bank. At a Senate hearing, he gave measured responses to questions about the potential for heightened regulation of midsize banks.
The oil-rich emirate has explored a string of ambitious acquisitions in the international banking sector. None have panned out so far.
The Swiss bank inherits its former rival's entire litigation portfolio, facing hundreds of millions of dollars in regulatory fines over Credit Suisse's dealings with Archegos Capital.
The construction manager for the beleaguered New Jersey mall is suing JPMorgan Chase & Co. to recover more than $30 million of unpaid work and accrued interest.
Senate Banking Committee Chairman Sen. Sherrod Brown, D-Ohio, and ranking member Sen. Tim Scott, R-S.C., will have to contend with members of their own parties who would prefer a more sweeping executive compensation clawback bill.
Federal Reserve Vice Chair for Supervision Michael Barr said he is overseeing a six-month project to overall supervisory culture, practices, behavior and tools. He said regulatory changes will also be explored.
The American Bankers Association's Economic Advisory Committee said access to loans is likely to further soften, while defaults and credit losses could increase in the second half of the year.
California regulators are suggesting that programs that allow workers fee-free access to their earnings between pay periods should be treated as loan products. That's wrong and short-sighted.
Answers that used to take employees 15 minutes to find, they can now obtain in seconds using Microsoft's Bard generative AI.
Banks and credit unions have come out against the Consumer Financial Protection Bureau's proposal to cut credit card late fees to $8, saying that figure is too low to cover costs. Finding a more suitable number might save the bureau a lot of trouble.
The state where the first U.S. credit union opened in 1909 reported fewer members in the first quarter compared to a year earlier, due in part to the competitive threat from banks.
Smith joined the bank in January after serving as president of Keller Home Financial Services and heading Citi's U.S. mortgage business.
NomuPay has acquired parts of the disgraced processor that could help it overcome the barriers of entry to the lucrative market.
Further changes to field of membership rules will result in credit unions so big that they lose focus on the communities they were chartered to serve.
CEOs have to determine if this is really a viable business in a viable sector and whether these deposits can be safely used to support the fundamental mission of providing credit to the community.
Understanding the different aspects of new technologies and how they extend existing financial systems is essential for fostering a healthy relationship between banking and emerging innovations.
Decision-making algorithms powered by machine learning are seen as the next frontier for a more nuanced approach to mortgage decisions but skeptics worry this will just be a new way to discriminate.
American Banker's annual ranking examines midsize banks with the best financial metrics.
The American Bankers Association's credit conditions index remained near historic lows despite a slight uptick in the most recent quarter. Pessimism pervaded the outlook for both business and consumer lending.
Discover Bank launches financial health fund, Cross River Bank climbs past real-time payment transaction benchmark, Webster funds financial education at youth-focused nonprofits and and more in this week's banking news roundup.
The Senate bill, which will receive a committee vote next week, would give the FDIC the option to take back compensation from executives at failed institutions. Some advocacy groups want stronger language.
Lake Trust Credit Union in Brighton, Michigan, works with a development agency in Lansing to provide entrepreneurs with the financial and educational support they need to go it alone.
The regional bank is taking its core transformation slow and steady, starting with deposits, according to Jay Poole, head of consumer products technology.
The Federal Reserve will now disclose all entities that have access to its payments system, as well as those that are seeking access. The move ends a yearlong standoff with Congress.
The Consumer Financial Protection Bureau plans to issue a larger participant rule that would allow the agency to examine consumer payment markets. The rule will allow the CFPB to examine and supervise Big Tech companies such as Apple, Alphabet's Google, PayPal and Square.
The Bank of England is a step closer to launching its own digital currency after a yearlong project concluded the technology could support a "diverse range" of new ways to use money.
In a speech, the Federal Reserve Board governor said tighter monetary policy is not to blame for the volatility seen in the banking system this spring.
Loan demand slowed, deposit costs jumped and credit quality became vulnerable, but veteran banker Frank Sorrentino sees more positives than negatives for community banks, particularly when interest rates level off.
The Alabama bank, which has been sanctioned by regulators for its overdraft practices twice in the last eight years, joins several competitors that already offer a grace period to overdrawn customers.
Tony Macchi will be in charge of the Massachusetts community bank's ongoing digital transformation
All 12 regional Federal Reserve banks released financial information from their presidents on Thursday, including new errors that Federal Reserve Bank of Atlanta President Rafael Bostic acknowledged. Such disclosures have taken on increased significance after a slew of scandals in recent years.
The pro football league plans to borrow up to $78 million over the next three years from 16 financial institutions, most of which are Black-owned or Black-led. It follows the lead of Major League Soccer, which announced a similar plan last year.
The former presidential candidate shared his worst-case scenarios for artificial intelligence, as well as his opinions about bank chatbots and what he thinks of the U.S. political system, at American Banker's Digital Banking Conference.
J. David Rosenberg, a shareholder in the Salem, Indiana-based company, proposed the initiative after he became frustrated with the bank's financial performance.
Ajay Banga, the newly appointed president of the World Bank, said he doesn't view China as a rival for the development lender and pledged to avoid getting dragged into competition between Washington and Beijing.
The idyllic existence of Federal Home Loan bank leaders has persisted for 90 years. Now the castle walls may be crumbling.
Citizens Financial has teamed with Wisetack, which supports dozens of platforms connecting to thousands of home improvement, dental and veterinary service providers.
In a new survey, 38% of treasurers said they want to bump up their allocation to money market funds. Only 27% were looking to increase their bank deposits, highlighting the pressures the industry faces as it strives to hold onto customers' cash.
The Federal Reserve chair said that as the Treasury replenishes its general account at the Fed, it will lead to fewer reserves in the banking system.
Though the Federal Reserve's stress test scenarios were announced ahead of the string of bank failures this spring, the results will be a significant peek into the health of the banking system.
Republican members of the House Financial Services Committee blasted Consumer Financial Protection Bureau Director Rohit Chopra as an 'extortionist' and labeled his efforts to rein in discrimination as 'McCarthyism' during a four-hour hearing Wednesday.
For small credit unions, enlisting outside helps accelerate the development of new products — as long as all risks and regulations are properly addressed.
Both regional banks announced weaker guidance for net interest income than they had foreseen two months ago. The disclosures highlighted pressures that figure to take up a lot of the oxygen during second-quarter earnings season.
Total loans from credit unions increased by nearly 18%, driven in part by car dealerships rebuilding their inventory. Headwinds in the mortgage market also fueled interest in home equity loans.
Acting Comptroller of the Currency Michael Hsu said the banking industry has been largely insulated from crypto winter, but added that bank interest in servicing the crypto industry has waned over the same period.
Earlier this week, Wilson and his team of strategists said in a note that they expect S&P earnings to drop 16%, compared to predictions for a decline of just 2.4% for 2023 from sell-side analysts who have boosted their earnings expectations.
This week in global news: Stripe joins the MACH Alliance, GoCardless downsizes, CBA battles crypto crooks and more.
Bank regulators rolled out two joint proposals this month as part of a broader push to address discrimination in home valuations. Advocates see promise, but appraisers fear the changes could artificially inflate valuations.
Bank of America is also planning to expand into Madison, Wisconsin; Boise, Idaho; and Birmingham, Alabama, a company executive said. The goal is to find growth opportunities that don't require operating a large number of branches, the executive indicated.
House Financial Services Committee Chairman Patrick McHenry, R-N.C., said that he has an "open door" for bipartisan rulemaking when it comes to the Republican crypto oversight bill.
CEO Curtis Farmer said the warehouse sector, where Comerica provides lines of credit to mortgage banking companies, has not been providing much help as the company seeks to bolster deposits.
Lawmakers questioned Treasury Secretary Janet Yellen on concerns including bank consolidation, the systemic risk exception and the need for regulation of cryptocurrency during Tuesday's House Financial Services Committee hearing. During the hearing lawmakers highlighted gaps they see in post 2008 financial regulations at a time when they say big banks wield growing influence on the system.
Sen. J.D. Vance, R-Ohio, lambasted the Federal Reserve for increasing the dominance of "too big to fail" banks and failing to rein in systemic risk. He asked whether the Office of the Comptroller of the Currency is a better regulator than the Fed.
Just as the United States is getting good news in its war against inflation, the picture is very different across the pond. Some of that is bad luck, but there are lessons on what not to do as well.
State Employees Credit Union in Raleigh, North Carolina, named Leigh Brady as its new chief executive. Outgoing CEO Jim Hayes will run State Department Federal Credit Union in Alexandria, Virginia.
Michelle Moore, head of consumer digital at Wells Fargo, uses three principles to try to create user interfaces customers will come back to.
House Financial Services Committee Chair Patrick McHenry, R-N.C., said that two new bills would make the Financial Crimes Enforcement Network more accountable to the public as it moves toward implementing its beneficial ownership reporting requirement rule.
The Roseville, California institution is expanding into the Bay Area in hopes that it can land new clients and lenders in the wake of two large regional failures there this year.
Pesto, a San Francisco-based startup, invites consumers to ship their diamonds, gold and valuable jewelry to be appraised as assets backing a secured Mastercard. The firm has raised $11 million — and the eyebrows of some consumer advocates.
Young people aging out of foster care don't often have the documents or relationships necessary to open an account. First Tech is making changes to address this all-too-common issue.
Banks that haven't built a plan to implement the Federal Reserve's new real-time payments system still have time to make up lost ground.
New loan acquisitions fell to their lowest level since 2020, but companies also grew shares of residential securities noticeably over the past three years, S&P Global Market Intelligence said.
The additions allow the Rhode Island bank to expand its wealth management footprint along the East Coast and in San Francisco, where the recently shuttered First Republic was based.
The credit card company says it could raise interest rates, charge new fees and implement penalty-based pricing if late fees get capped at $8. But its ability to maneuver is constrained by a 14-year-old federal law.
Consumer Financial Protection Bureau Director Rohit Chopra warned that "powerful firms" must not dominate the new open banking landscape.
UBS Group AG poached nearly a dozen of the firm's top technology bankers, while others have left for Pickering Energy Partners and Jefferies Financial Group Inc.
Hafize Gaye Erkan becomes Turkey's first female central bank governor and faces the unique challenge of working for a president who believes that cheaper money leads to slower inflation.
Bank of America had been considering a bid for First Republic after it was seized by regulators, but ultimately dropped out of the process.
Bond traders have overestimated month-over-month headline inflation heading into four of the last seven Consumer Price Index releases, says strategist Raghav Datla.
Hiring staff members through the H-1B visa program can be a great way to fill critical vacancies while securing skilled and loyal employees, experts say.
The payment company is focused on small-business borrowers operating in areas where branches are shutting down.
Federal Deposit Insurance Corp. Vice Chair Travis Hill said Silicon Valley Bank's failure raises concerns over the resolution process, and said regulators should work harder to find a buyer for distressed banks in the future.
A new bank has taken the top spot on American Banker's annual list of the highest-performing institutions with less than $2 billion of assets.
The firm reached an "agreement in principle" to settle the proposed class action filed by an unnamed Epstein victim late last year, JPMorgan said in a statement Monday.
If the U.S. and Canada don't develop a coherent framework for regulating the industry, North America risks broader losses to other growing industries, like fintech and artificial intelligence.
The Simplicity credit card from Citigroup has had staying power, suggesting that a card without late fees can be profitable. Its success shows how the U.S. card market might look different under a controversial CFPB proposal to slash those charges.
PacWest Bancorp has completed the first part of the sale of a $5.7 billion loan portfolio to the real estate investment company Kennedy Wilson Holdings as the U.S. regional bank takes steps to shore up liquidity.
Five Star Bancorp expands into San Francisco, American Express to integrate with data aggregators Plaid and Yodlee, Bank of America reworks leadership in its investment banking unit and more in this week's banking news roundup.
Genesee Co-op Federal Credit Union in Rochester implemented the labor agreement after more than 14 months of bargaining.
The Dallas-based institution has hired Dan Sheehan, a veteran banker and the former CEO of Professional Bank, to head the effort that will include opening a branch in Palm Beach County later this year.
Economic analysis from the real estate advisory CBRE finds that community banks are particularly imperiled by their exposure to commercial real estate loans. Others see looming risks in indirect lending.
Local Government Credit Union is postponing its separation from State Employees Credit Union, which has shared its technology and footprint for decades, to establish its own physical presence.
More customer insights and Spanish support are on the horizon for the team developing Fargo.
House Financial Services Committee Chair Patrick McHenry, R-N.C., has posted a discussion draft of stablecoin legislation that includes some concessions to committee Democrats.
Smaller banks face challenges in providing their business customers with modernized tools to streamline payments, but the newest breed of embedded banking tools are making it easier for banks to help businesses increase revenue and cut costs.
Binance.US told users its payment and banking partners had signaled an intent to pause support for the exchange's dollar channels as early as June 13.
The slow rollout of Apple's buy now/pay later service contrasts starkly with the aggressive moves of leading BNPL fintechs. Analysts say Apple's restraint could pay off in time.
Years of consolidation have damaged competition in the banking sector. Regulators should be more, not less, restrictive about approving mergers.
Acting Comptroller of the Currency Michael Hsu said customers' trust in banking relationships is critical to the financial system as the agency seeks comment on what a survey of trust and banking should look like.
Consumer Financial Protection Bureau Director Rohit Chopra faces tough questions next week testifying before the Senate Banking Committee and House Financial Services Committee.
Financial institutions that received funding from the Emergency Capital Investment Program grew their loans by 35% between 2021 and 2022, according to new research. Now leaders at those institutions are turning their attention to the need for patient deposits.
Citigroup, Bank of America, Wells Fargo and KeyCorp are part of a coalition that last year pledged to move $1 billion of deposits to minority depository institutions and community development financial institutions. On Thursday, organizers announced that the group has reached its goal.
The public will have an additional 32 days to contribute to the Consumer Financial Protection Bureau's inquiry into the market for collecting and selling consumer data.
Cashless ATMs — which imitate a typical debit card transaction but code them as cash withdrawals — can lead to hefty fines. But many dispensaries still use the devices, partly due to the murky legal environment that surrounds the entire weed industry.
Threat intelligence has become a viable option for banks looking to gain insights about fraudsters communicating on Telegram with other criminals.
Led by House Financial Services Committee chair Patrick McHenry, R-N.C., Republican lawmakers asked the Financial Crimes Enforcement Network to develop a plan to make sure small businesses can come into compliance with its new beneficial ownership rule.
Federal bank regulators issued proposed guidelines for banks and other mortgage lenders to craft policies around reconsideration of value requests. The move is the latest aimed at rooting out bias in home appraisals.
An analysis by S&P Global Market Intelligence shows that 37 of the 50 largest U.S. banks reported increases in total assets after a series of regional lender failures.
Josh Williams, chief banking officer for Seattle Bank, explains how changes in payments technology will affect smaller institutions.
The FDIC gave Cadence Bank in Mississippi the highest possible rating on its most recent Community Reinvestment Act evaluation. Cadence was the product of a 2021 merger completed just months after the acquired bank settled a federal lending discrimination case.
The seller announced the delay to give it time to solicit more votes in favor of the deal. It plans to push a June 13 meeting to next month, when shareholders will decide whether to approve the transaction.
Regulators need to recognize the uniqueness and potential of cryptocurrency instead of seeking to fit crypto assets into an outdated regulatory framework.
The measure will prevent banks chartered elsewhere from charging interest rates above Colorado's 36% rate cap. If additional states take the same approach, it could hamper the business model for high-cost consumer lenders that partner with banks.
Robert Trunzo, who has led TruState since 2014, will retire in October. The company, previously called CUNA Mutual Group, hired Terrance Williams to replace him.
After shares dropped in the aftermath of recent failures, most banks demonstrated resilience and investors started to buy back into the sector.
The interagency report recommends practices for financial institutions to manage relationships with fintechs and other third parties.
Paulding County, northwest of Atlanta, is Georgia's second-fastest growing county, but after years of consolidation just one community bank has a branch there.
Addressing the Bloomberg Invest conference in New York on Wednesday, Fitzpatrick said mortgage-backed securities present a uniquely interesting investing opportunity.
Sen. Dick Durbin, D-Ill., has reintroduced a plan to reduce merchants' credit card acceptance costs, with more backing from bipartisan lawmakers.
Ally Financial, TD Bank and Park View Federal Credit Union are experimenting with custom settings so users can tweak color contrast, font styles and more.
Citigroup Chief Executive Officer Jane Fraser visited Beijing this week, joining other Wall Street executives to travel to China despite growing geopolitical tensions with the United States.
The Providence, R.I.-based bank has been scaling down its indirect auto lending program since last year.
State officials from California to New Jersey along with the SEC are focusing on Coinbase's staking program, which offers customers a return for letting their tokens be used to facilitate blockchain transactions.
This week in global news: JPMorgan Chase works on blockchain in India, U.K. reps want faster crypto regs and more.
Widespread adoption of a central bank digital currency would utterly transform the financial services sector by reducing access to loans and raising prices for consumers.
As incentive marketing and payments preferences change, Geeta Chandan, vice president and head of product and loyalty at Discover, will join us at American Banker's Payments Forum to discuss opportunities and challenges. interview at Payments Forum
After outsize profits at banks during the early stages of the pandemic led to big increases in compensation, chief executives collected a 7% median pay raise in 2022. The decline in stock prices following the recent banking crisis could weigh on the size of this year's awards.
The Tennessee-based bank was supposed to be acquired this year, but the merger fell apart a month ago. Now executives say that employees are energized as they re-engage with clients who are relieved that they won't be switched away from First Horizon's systems.
Beach Cities Commercial Bank is set to open in Southern California next week. Rising interest rates and consolidation in recent decades have created more opportunities for investors to form new banks, experts said.
The Securities and Exchange Commission sued the two largest cryptocurrency exchanges this week over allegations of operating as unregistered securities exchanges, rattling the industry but potentially lighting the way to more regulatory certainty.
Chatbots may provide inaccurate information, may run afoul of consumer financial protection laws and may force consumers into "repetitive loops of unhelpful jargon," the Consumer Financial Protection Bureau warned.
The Federal Reserve has taken heat in recent years for its forays into climate stress testing, but the effects of climate change on the broader economy are getting harder to ignore.
The House Financial Services Subcommittee on Financial Institutions and Monetary Policy debated bills that would lower some banks' regulation and allow banks to pay some Deposit Insurance Fund assessments with Treasuries.
Jennifer Schachterle will oversee the Home Loan bank's relationships with nearly 330 members. Two former members — Silicon Valley Bank and First Republic — failed this year, and consolidation has also thinned its ranks.
During last year's proxy season, 14 large and midsize banks reported granting special awards in an effort to retain C-level executives. So far this year, just four banks have done so, reflecting a gloomier economic outlook, consultants say.
Roughly one in two people who work in finance would change jobs — or already have — if their managers required them to spend more time in the office, according to a new survey.
Whitney Stewart Russell, President of Digital Solutions at Fiserv, speaks with Chana Schoenberger, Editor-in-Chief of American Banker, about how turmoil in the industry and the economy is playing out as banks work to become more digital.
The actual bump in capital requirements, which may be proposed this month, will vary based on the range of banks that will be affected by the changes to key capital rules.
The Consumer Financial Protection Bureau issued only 20 enforcement actions in 2022, but some observers say the enforcement numbers belie the results that director Rohit Chopra is getting from other ways of holding companies accountable.
Workers at the former CUNA Mutual Group in Madison, Wisconsin, returned to work after securing tentative agreements on two of their five key demands.
Hafize Gaye Erkan, who resigned in early 2022 as co-CEO of the since-failed First Republic Bank in the U.S., is said to have met with Turkey's newly appointed finance minister after emerging as a potential candidate for the job of running the country's central bank.
Nearly two out of three finance chiefs surveyed by Piper Sandler said they were most worried about deposit costs in the aftermath of recent bank closures. Only 7% cited credit quality as their top reason for unease.
Federal Reserve Board Gov. Philip Jefferson, who has been tapped to serve as vice chair of the central bank, said the new rules will standardize capital requirements and increase transparency.
The Consumer Financial Protection Bureau said the Evansville, Indiana, installment lender had engaged in "unfair, deceptive and abusive acts and practices," and failed to reimburse interest to consumers who had cancelled certain add-on products.
JPMorgan Chase CEO Jamie Dimon says his company remains committed to doing business in the Communist Party-ruled nation as political tensions grow.
The Federal Deposit Insurance Corp. said in its quarterly banking profile that the banking industry remains resilient despite a challenging economic backdrop, but exposure to commercial real estate losses and interest rate risks could make continued stability difficult.
A full accounting of regulators' actions in the lead-up to the collapse of Silicon Valley Bank, as well as other recent bank failures, is necessary to restore public confidence in both the banking system and the government itself.
The 30-year average for both conforming and jumbo loans jumped more than 20 basis points, according to the Mortgage Bankers Association.
The San Francisco-based bank is proactively managing its loan portfolio and working with borrowers to restructure terms with the goal of helping clients and minimizing risk, CEO Charlie Scharf said.
The founders of Vesey Ventures are most interested in startups that want to play nice with the giants of the banking and payment industries.
Carrie Tolstedt, the longtime head of retail banking at Wells, is resolving legal problems tied to her role in the bank's phony-accounts scandal. Earlier this year, she agreed to plead guilty to a criminal charge as part of a deal that calls for up to 16 months behind bars.
A Comerica Bank executive admitted to major failures in its handling of the Treasury Department's Direct Express program, including data and resolved fraud disputes sent to a vendor's office in Lahore, Pakistan, a "serious" contract violation.
The National Credit Union Administration order says the small credit union must address "supervisory concerns" by conducting certain auditing and fraud reviews and taking other corrective steps.
The portfolio purchase, which follows the sale of MUFG Union Bank to U.S. Bancorp, represents about 32% of LendingClub's own personal loan portfolio. It should help boost the online lender's growth while using some of its excess capital.
The Consumer Financial Protection Bureau is investigating whether the cryptocurrency lender Nexo Financial is abiding by consumer protection laws, according to documents released this week. The CFPB rejected the company's argument that the agency has no authority to conduct the probe.
The Federal Reserve Board of Governors voted 6-1 to seek public comment on a new regulatory framework for climate-related financial risks. The requirements would add to existing risk management standards.
There's an opening for Congress to pass a narrow digital-asset regulation bill before the year's end after the collapse of the crypto exchange FTX, Sen. Pat Toomey said.
Across Wall Street, this year's bleak expectations for banker bonuses are rapidly proving true, as a slump in dealmaking ends the industry's war for talent and firms regain the upper hand in setting pay.
Baseball great joins Farmers National team, waiting game ends for two deals and more in banking news this week.
Small credit unions in Texas, Virginia, South Carolina and Florida have selected new leaders to succeed retiring executives or fill a vacancy.
The many advantages banks can obtain from working with financial technology companies are undeniable. But so are the dangers.
U.S. authorities are asking crypto investors and trading firms that worked closely with FTX to hand over information on the company and its key figures, including founder Sam Bankman-Fried and the former head of his Alameda Research investment arm, Caroline Ellison.
With the final piece of its regulatory puzzle in place, Newtek, a business development company and the nation's No. 3 SBA 7(a) lender, plans to complete its acquisition of National Bank of New York City in January.
Silicon Valley Bank named Erin Platts head of its private banking and wealth management arm, which caters to the financial needs of technology and venture capital executives.
Protecting depositors' stablecoin holdings could be the difference between providing the economy with a new boost and creating unnecessary drag.
The card company has rapidly expanded its business products this year, focusing on the hardships caused by inflation and supply-chain issues.
Banking companies are increasingly using application programming interfaces that transfer customer information to third-party money-management apps popular with consumers. But fraudsters are exploiting vulnerabilities in the technology to steal information.
Both Canadian banks are awaiting green lights from regulators for their pending acquisitions of U.S. banks. "We don't control the timing of all the regulatory approvals," TD's chief executive said Tuesday.
Federal Reserve Vice Chair for Supervision Michael Barr said his 'holistic' review of capital standards is still underway, but noted the benefits of stronger requirements in a speech Thursday.
Michael Corbat, the former chief executive of Citigroup, is joining Josh Harris's new investment firm 26North Partners as a senior advisor.
As climate transition evolves in the coming years, banks will be in position to finance a wider range of decarbonization efforts than they have in the recent past, according to a new report from McKinsey.
The Worldwide Foundation for Credit Unions' Fuel Disbursement Program provided more than 160 farmers with roughly 17,000 gallons of pre-paid fuel. Other groups are supplying computers and printers to help the country's domestic credit unions remain operational.
Lawmakers appeared to support strengthening a bill to give the Commodity Futures Trading Commission authority over crypto derivatives.
Financial technology companies that distributed Paycheck Protection Program loans often employed lax oversight that allowed fraudsters or ineligible individuals to receive relief funded by taxpayers, a congressional report found.
Peach State Federal Credit Union in Lawrenceville, Georgia, is merging with Abbeville Community Federal Credit Union in Abbeville and Pickens Federal Credit Union in Pickens.
The Federal Reserve's campaign to tighten financial conditions has resulted in notably increased borrowing by U.S. banks at the central bank's discount window, normally a last-resort funding source.
The baseline scenario used by many banks is for low-single-digit growth in GDP and an unemployment rate of around 4% next year. Some Wall Street analysts are wondering whether those assumptions, which banks use to calculate their loan-loss reserves, are too rosy.
InBankshares has hired a former PacWest senior executive — its third leader to come from a regional bank — in a move aimed at bringing in the skills necessary to run a much larger institution.
The Federal Reserve Governor Lisa Cook said recent events show that existing regulation and supervision tools are already well suited for protecting banks from the risks of digital assets.
Federal Reserve Chair Jerome Powell said that interest rates could climb less quickly as early as December, but warned that cutting rates "is not something we want to do soon."
Some respected financial industry participants had connections with the cryptocurrency exchange and are coping with the fallout alongside thousands of investors and backers.
Acting Federal Deposit Insurance Corp. Chairman Martin Gruenberg was described even by Republicans as well qualified and experienced, but took heat for a year-old drama that led to the departure of the agency's former chairman.
Banks are developing technology to identify potential mass shooters, according to a CEO backing the push to get credit card companies to track gun purchases more closely.
LedgerX — one of the few corners of Sam Bankman-Fried's crumbled crypto empire that remain solvent — is preparing to make available $175 million for use in FTX's bankruptcy proceedings, according to people with knowledge of the matter.
The transaction, which would have created the country's largest custody bank, was derailed after regulators demanded certain changes. The seller said that it has no plans to find a new buyer for its investor services business.
Janet Yellen said Wednesday she intends to stay on as Treasury secretary in Joe Biden's administration, seeking to put to rest rumors of her departure following the midterm elections.
The Swedish buy now/pay later lender insists it is on a path to profitability, despite mounting losses.
Large banks are catching up to regionals and nontraditional institutions in overall reputation scores, but regional banks are winning when it comes to innovation.
Entrepreneurs often call fees a drawback of their current financial institution, according to research from Arizent. Banks should focus on developing long-term relationships with these customers, rather than charging for every service, experts say.
Wall Street reporting has left Main Street behind and you, dear banker, should be concerned. A new book, "The Future of Business Journalism," explains why.
As the central bank considers publishing a list of account holders and applicants, parties on both sides of the industry would like it to go even further.
Daylight, which launched less than two years ago, is building a subscription service that helps LGBTQ customers overcome the complexities of starting a family.
After a judge dismissed a lawsuit brought under the anti-predatory-lending law, the Consumer Financial Protection Bureau and the Federal Trade Commission are urging an appeals court to reverse the ruling. They argue that lenders have little incentive to comply with the 2006 law if the threat of being sued gets diminished.
Federal Reserve officials at their meeting earlier this month concluded it would soon be appropriate to slow the pace of rate increases, signaling the central bank was leaning toward downshifting to a 50-basis-point hike in December.
By one estimate, fraud increases 25% between Thanksgiving and Cyber Monday. Banks and credit unions are reaching out to help customers avoid the scams.
Sens. Elizabeth Warren and Sheldon Whitehouse, both Democrats, have asked the Justice Department not to pull any punches as it investigates and seeks to hold accountable the executives at FTX who contributed to the crypto company's demise.
M&T lends a hand in the Keystone State, fintech-bank deal is delayed and more in banking news this week.
In global news this week, WeChat Pay enables instant payments outside China, Mastercard takes a minority stake in Societe Generale subsidiary Treezor, Sella Group tests a fingerprint payment card in Italy, and more.
Citi was the only bank cited in the agencies' biennial review of living wills for the eight largest U.S. banks.
In the House of Representatives, Rep. Pat McHenry wants to push regulators and bank CEOs on their ESG investments, but the real action is happening at the state level.
President Biden announced that his administration would extend the pandemic-era pause in student loan repayments through June 30 amid legal challenges to his college debt-forgiveness plan.
Security researchers recently infiltrated a cybergang that stole account credentials with convincing, spoof websites. Could an ABA-endorsed solution help?
The growing anti-ESG backlash from Republican lawmakers may please the base, but as a practical policy it creates far more problems than it solves.
Despite stiff competition, compounded with confusion surrounding President Biden's loan forgiveness program, credit unions managed to bring their student-loan portfolios back from pandemic lows.
Friendly Hills Bancorp will soon be called First Pacific — a name its CEO has coveted for years. First Missouri recently rebranded as Verimore, a name it made up by combining words from Latin and English. In both cases, the changes reflect the banks' expansion into new markets.
The digital-asset brokerage Genesis is struggling to raise fresh cash for its lending unit, and it's warning potential investors that it may need to file for bankruptcy if its efforts fail, according to people with knowledge of the matter.
Fidelity National Information Services plans to dismiss thousands of workers as part of incoming Chief Executive Stephanie Ferris's strategy to win back investor confidence after the fintech giant slumped 44% this year.
The FDIC recently proposed that an ombudsman be added to the Supervision Appeals Review Committee as a nonvoting member.
A panel of experts discuss the midterm elections, the FTX blowup and the legislative and regulatory policy implications that both will have in Washington.
The case involved a customer who was charged $100,000 in legal fees when he tried to pay off a commercial mortgage early. After the borrower waged a nearly decadelong legal fight, a Florida court ordered the bank to reimburse a portion of the fees.
From a German bank seeking a more than $2 million payment to a Chinese investor requesting $21,000 of lost savings. Claimants around the world who were caught up in the epic collapse of FTX Group are beginning to appear in court filings.
Long before Sam Bankman-Fried's FTX cryptocurrency empire collapsed this month, it already was on the radar of federal prosecutors in Manhattan.
The collaboration with Thunes enables millions of underbanked mobile wallet users and merchants to perform digital cross-border sales, providing another route to cut processing costs.
Russia's international ambitions for its homegrown alternative to Visa and Mastercard have been dashed as even some of its closest allies have dropped its Mir payment system following a threat by the U.S. to sanction anyone who helps or supports its use.
Long-tenured CEO Matthew Wagner intends to retire from the company's top job early in 2023, not at the end of that year as initially planned. Paul Taylor, PacWest's president, will succeed him.
Bank of New York Mellon's Frankfurt offices are being raided by Cologne prosecutors as part of their vast investigation into the controversial Cum-Ex scandal that has increasingly ensnared Wall Street's biggest banks.
Organizing relief initiatives for Ukraine, launching charities for children's hospitals and growing an institution to more than $4 billion of assets are benchmarks in the more than 45-year career of Foulke.
U.S. consumers are more likely to apply for a credit card, and less likely to get rejected, than they were last year, according to a New York Fed survey. The card industry is growing even as the mortgage and auto lending sectors show signs of retrenchment.
Sens. Debbie Stabenow (D-Mich.), the committee's chairman, and John Boozman, R-Ark., its ranking member, will need to revamp their legislation to oversee crypto, which was supported by FTX CEO Sam Bankman-Fried.
A Dallas-based startup that planned to build a banking option for folks who find Wall Street too liberal has laid off most employees and will cease operations.
BMO Financial in Canada and Re:start, a neobank in Texas, are letting those displaced by war apply for accounts online with atypical documentation.
Banks are underwater on many bonds they bought before interest rates began their sharp rise. The impact has been wide-ranging — decreasing the industry's interest in stock buybacks, dampening the appetite for M&A and raising concerns about some smaller institutions' ability to borrow from the Federal Home Loan banks.
SoFi Technologies was supposed to divest its digital-asset trading arm when it acquired Golden Pacific Bancorp, but Senate Democrats say the bank has instead expanded it.
Deutsche Bank is weighing cuts to its leveraged finance unit as part of a review by CEO Christian Sewing into underperforming businesses as his three-year restructuring concludes.
The bank said Monday that its interim president and CFO had resigned. This followed the departure of its previous president earlier in November.
The $683 million-asset credit union opened a loan production office in Enfield dedicated exclusively to mortgage and business lending.
If a $6.3 billion subsidy only generates a $304 million return in terms of housing and community development support, is that money well spent?
Savarese was drawn to a career in the financial services industry after witnessing firsthand how economic stability can improve the lives of others. She then spent 17 successful years running the Massachusetts mutual.
Brown has been with the online lender almost since it was spun off from General Motors, helping it broaden its product offerings and take a stand on overdraft fees. Now he must help Ally confront a looming recession.
The collapse of the crypto empire founded by political megadonor Sam Bankman-Fried is being transformed into a new political battlefront as Republicans highlight links between Democrats and their onetime benefactor.
Kristin Johnson of the Commodity Futures Trading Commission urged crypto industry whistleblowers to come forward in the aftermath of FTX Group's implosion, saying tipsters have previously received millions of dollars for their help.
Lawmakers on both sides of the crypto debate see a call to action in the demise of the world's second largest crypto exchange. But a consensus path forward has yet to emerge.
The bank has agreed to pay $113 million for the $500 million-asset Surrey Bancorp, which specializes in credit for small to midsize commercial clients as well as government-guaranteed loans.
Visa's Qatar 'face payments' rollout, Regions' continuing-ed perk and more in banking news this week.
President Biden called on the U.S. Supreme Court to let his student-loan relief plan take effect, setting the stage for a multibillion-dollar showdown that could affect more than 40 million borrowers.
A former Deutsche Bank trader cleared of charges that he rigged the Libor benchmark rate has sued the bank for malicious prosecution, saying the company made false and misleading statements to get him prosecuted in the U.S.
Machine learning and automation could be pivotal in helping consumers and small businesses outside the mainstream access credit and other basic banking services, several panelists said at the Financial Technology Association's inaugural Fintech Summit.
Through lending programs, financial coaching and hiring practices tailored for inclusion, these CEOs provided crucial services to underserved communities.
The British lender is offering to provide support for laid-off workers starting new fintech businesses and hopes to attract staff for some of its thousands of technology job vacancies.
North Carolina Republican Patrick McHenry — who's in line to lead the House Financial Services Committee after the GOP won control of the chamber in the midterm elections — has called for the Fed to stay focused on controlling inflation. Democrats, who retained the Senate, have begun to voice concerns that higher borrowing costs will hurt jobs and potentially cause a recession.
Republican control of the U.S. House of Representatives will help advance financial services firms' priorities, with a wish list that includes curbing ambitious proposals by a top markets regulator and diminishing the clout of a popular U.S. consumer watchdog.
The companies are improving the way older, "offline by nature" industries like steel and food services handle transactions and financing.
Btech Consortium, a partnership between several small banks, a venture capital firm and an asset manager, will identify emerging technologies that meet their members' near-term needs.
Farmers and the bankers who lend to them are increasingly concerned that rising costs will hasten a recession and hamper credit quality in 2023.
The Kentucky Bankers Association is seeking to halt Attorney General Daniel Cameron's investigation into climate commitments made by six large banks. The suit alleges that the AG overstepped his authority by seeking to compel the banks to turn over certain documents and communications.
Burke & Herbert Financial Services in Alexandria, Virginia, plans to list its shares on the Nasdaq stock market — not to raise funds, but to boost its profile with investors.
The San Francisco bank joined Bank of America, U.S. Bancorp and Huntington Bancshares, which have previously introduced similar products. The Pew Charitable Trusts said the loans are a more affordable option for cash-strapped consumers than payday loans and overdraft fees.
Financial Services Committee Chair Maxine Waters and the panel's top Republican, Rep. Patrick McHenry, pressed bank regulators to support bipartisan stablecoin legislation and other efforts to toughen standards for cryptocurrencies in the aftermath of the FTX collapse.
The cryptocurrency lender BlockFi is preparing to file for bankruptcy within days, according to people with knowledge of the matter who asked not to be named because discussions are private.
The president is responding to critics who say many of Democrats' key policies do not address core expenses for Americans.
The regulator's demand in confidential talks to settle a series of investigations into mistreatment of customers, described by people with direct knowledge of the matter, reflects its escalating frustration with the bank, which has been punished multiple times by authorities over the past six years for a variety of abuses.
The North Carolina bank has made 11 insurance-related acquisitions in the last three years, and a top executive forecasts more buying chances as brokerage consolidation continues.
Deutsche Bank was told by the German financial watchdog BaFin that it must fix its controls within given deadlines if it wants to avoid a financial punishment.
The Federal Reserve's semiannual financial stability report said the threat of continued high prices and the Fed's response to them are top threats for banks and other market participants.
The security company OneSpan has launched a new line of such products for financial institutions. Some are skeptical that stand-alone authentication devices are necessary.
The Federal Reserve's latest rate hike will cost Americans with outstanding credit card debt more than $5 billion in additional interest over the next 12 months, according to an estimate from the personal-finance site WalletHub.
Mobile banking marches on, new blood for Visa fintech effort and more in banking news this week.
Facing calls for more transparency around its account-granting processes, the central bank has proposed making a public database of institutions with access to its services.
The state's largest banks posted solid third-quarter loan growth and earnings. But Hawaii's tourism-heavy economy is vulnerable to lofty inflation and the threat of a downturn.
Wings Financial Credit Union in Apple Valley, Minnesota, has agreed to buy Settlers Bank in DeForest, Wisconsin. It's the third bank acquisition deal Wings has announced, one of which fell through.
The consumer lending fintech is continuing to branch away from its original student loan refinancing gig to drive revenue and beat analysts' predictions.
The online consumer lender has told about 140 employees who process loan applications that it is eliminating their positions. The job cuts come as Upstart struggles to get banks and other investors interested in buying enough of its loans.
U.S. Supreme Court justices questioned the legality of stiff penalties the federal government says it can impose on people who fail to file required reports listing their foreign bank accounts.
The increases may simply reflect better detection and reporting, but banks continue to facilitate large ransom payments to sanctioned individuals.
Binance Holdings founder and CEO Zhao "CZ" Changpeng, who last month said the crypto exchange may spend more than $1 billion on deals this year, is considering targets including banks as the boundary between the digital-asset industry and traditional finance blurs.
Just as automakers start making headway sorting out the parts shortages that have constrained production and left dealers with a scarce supply of vehicles to sell, the Federal Reserve is putting up a new obstacle: much costlier car loans.
In global news this week, the U.K.'s FCA adds more tech for vetting; SWIFT delays digital pay standards and big banks join a global payment network.
Crypto executives pulled back on political giving in the immediate run-up to the Nov. 8 midterm elections, a move that followed the crash in digital currencies like bitcoin and ether.
The cryptocurrency conglomerate Digital Currency Group promoted Mark Murphy to president from chief operating officer as part of a restructuring that saw about 10 employees exit the company.
The Federal Reserve has made clear it intends to stamp out inflation no matter what, and that means interest rates are likely returning to the old normal of the late 1980s and 1990s. But interest rates on savings accounts haven't caught up.
Britain's prospects as a crypto hub remain uncertain after Liz Truss won the race to be its new prime minister, leaving entrepreneurs and investors wondering what policies — if any — await the digital asset industry under fresh leadership.
Pinnacle Credit Union in Atlanta, RVA Financial Federal Credit Union in Richmond, Virginia, and MUNA Federal Credit Union in Meridian, Mississippi, are combining into a single organization as a way to pool resources despite their lack of proximity.
The Los Angeles fintech, which hosts a marketplace where people lend to one another, is moving forward and working to set up a "lending DAO" as it deals with questions about its tipping model.
A shift is underway at the Federal Reserve in how to describe neutral — the interest rate level that neither stimulates nor restrains growth — as it debates how much higher to hike.
Officials say the decision to call off the acquisition, first announced in January, was mutual.
Banks make up just 10% of the client base for Eltropy, which hopes to grow that number through two tech acquisitions that add video banking and artificial intelligence capabilities.
Citigroup is seeking 400 more staff for its Belfast office as it expands rapidly outside of London, according to a senior executive at the bank.
Everyware, a text-based billing company reports strong demand for installment loans — due in part to the immediacy with which people respond to messages that pop up on their phones.
Citigroup joined rivals in trimming the ranks of its mortgage workforce as rising interest rates continue to crimp demand in the housing market.