Regulations & Policy: Page 2
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Bonnie Cash / Stringer via Getty Images
Warren presses Fed’s Powell on bank exec compensation
The central bank chair engaged in a heated back-and-forth with the senator, and also weighed in on CRE, Chevron deference and liquidity in hearings this week.
By Caitlin Mullen • July 10, 2024 -
Anna Hrushka/Banking Dive
FDIC downgrades Forbright Bank’s CRA score
The demerit stems from a relationship the bank had with a third party that ended more than two years ago, a source familiar with the evaluation said.
By Gabrielle Saulsbery • July 9, 2024 -
Trendline
Fraud and AML in banking
It’s not just big banks like Citi and TD that face stiffer AML oversight from regulators. The FDIC is looking closely at banks offering BaaS alongside fintechs.
By Banking Dive staff -
Courtesy of Fifth Third
Fifth Third fined $20M over fake accounts, auto repossessions
The Cincinnati bank must compensate roughly 35,000 harmed consumers. The CFPB settlement resolves a March 2020 lawsuit that asserted the bank created fake accounts and used an aggressive “cross-sell” strategy.
By Rajashree Chakravarty • July 9, 2024 -
Bonnie Cash / Stringer via Getty Images
Powell: Capital requirements changes should face public comment
The Federal Reserve chair told senators Tuesday it’s his preference to seek public comment on a revised capital requirements proposal, and the Fed is working to get the FDIC and OCC on board.
By Caitlin Mullen • July 9, 2024 -
Spencer Platt via Getty Images
Warren blasts Powell’s ‘cozy relationship’ with bank execs
Since Powell assumed his role in February 2018, the Federal Reserve chair has had private conversations with JPMorgan CEO Jamie Dimon at least 19 times, according to the senator.
By Rajashree Chakravarty • July 8, 2024 -
Permission granted by TD Bank
TD names Citi vet next compliance chief
Erin Morrow replaces Monica Kowal, who left the bank July 2. Two of the three highest-ranking TD execs assigned to fix compliance management framework deficiencies have left in recent days.
By Dan Ennis • July 8, 2024 -
Scott Olson via Getty Images
Discover to settle card misclassification class actions for $1.2B
The card company has warned it could face further financial toll related to the issue, in which it overcharged merchants for years.
By Caitlin Mullen • July 8, 2024 -
Spencer Platt / Staff via Getty Images
Potential BofA blind spot prompts court to revive $10B lawsuit
A U.S. appeals court nullified a ruling by a judge whose wife owned, then divested, Bank of America shares while he presided over an antitrust case in which BofA was a defendant.
By Rajashree Chakravarty • July 3, 2024 -
matt_benoit via Getty Images
Silvergate pays $63M to settle with SEC, Fed, California regulator
The company and two of its executives settled allegations against them. Silvergate’s former CFO, however, did not, and eyes a civil trial.
By Gabrielle Saulsbery • July 2, 2024 -
Chip Somodevilla via Getty Images
SEC sues Consensys over failure to register as a broker
The crypto firm collected more than $250 million in fees as an unregistered broker, the SEC said. The company sued the SEC in April over the agency’s regulation of the Ethereum blockchain.
By Rajashree Chakravarty • July 2, 2024 -
Anna Moneymaker / Staff via Getty Images
Supreme Court ends Chevron deference
The decision is likely to influence how banking regulators make their rules, and the amount of legal challenges that follow those rules, attorneys said.
By Gabrielle Saulsbery • July 1, 2024 -
Paul Morigi via Getty Images
Biggest US banks boost dividends, launch stock buybacks
JPMorgan and Morgan Stanley flag repurchase programs worth $30 billion and $20 billion, while Goldman Sachs bemoans an uptick in the bank’s stress capital buffer.
By Dan Ennis • July 1, 2024 -
Spencer Platt / Staff via Getty Images
Citi urges court to dismiss ex-employee’s retaliation lawsuit
Kathleen Martin sued the bank, claiming she was fired for refusing to misreport data to the OCC. Citi claims she was fired for lacking “the requisite leadership and engagement skills” her role demands.
By Rajashree Chakravarty • July 1, 2024 -
Anna Hrushka/Banking Dive
FDIC orders Thread Bank to step up BaaS oversight
The Rogersville, Tennessee-based bank must implement a documented risk assessment of its fintech partners, the agency said. The bank’s board also must approve risk tolerance thresholds.
By Caitlin Mullen • July 1, 2024 -
VersaBank’s cross-border acquisition of Minnesota lender gets final nod
Canada’s Office of the Superintendent of Financial Institutions approved the transaction this week, after the Fed and OCC green-lighted the tie-up.
By Dan Ennis • June 28, 2024 -
Leon Neal via Getty Images
Coinbase sues SEC, FDIC to see probe-related documents
The crypto firm wants to know how the SEC, for one, first began deciding which tokens would and would not be considered securities.
By Gabrielle Saulsbery • June 28, 2024 -
Alex Wong / Staff via Getty Images
Biggest banks would see $685B in losses in Fed stress test
All 31 banks passed, prompting trade and lobbying groups to push back on Basel — and JPMorgan to say the Fed's buffer calculations were wrong.
By Dan Ennis • June 27, 2024 -
Dan Kitwood / Staff via Getty Images
Crypto firm Abra settles with 25 states for operating without a license
Abra agreed to repay customers some $82 million in crypto. CEO Bill Barhydt said all but $2 million, yet to be claimed, has been repaid.
By Gabrielle Saulsbery • June 27, 2024 -
Avosb via Getty Images
Evolve data breach adds to woes of Synapse partner
Customer data was released to the dark web, the bank said, two weeks after the Fed handed Evolve an enforcement action regarding its partnerships.
By Dan Ennis • June 26, 2024 -
Permission granted by Funding Circle U.S.
Funding Circle sells its US unit, returns SBLC license
iBusiness Funding, a subsidiary of Ready Capital, agreed to acquire the fintech for roughly $42 million. In March, Funding Circle's CEO said it was exploring the sale of its U.S. unit.
By Rajashree Chakravarty • June 26, 2024 -
Chip Somodevilla via Getty Images
Indiana’s United Fidelity Bank hit with Fed order
The move follows an enforcement action the Office of the Comptroller of the Currency issued in October to address capital planning, risk management and contingency funding, among other issues.
By Gabrielle Saulsbery • June 26, 2024 -
Win McNamee via Getty Images
CFPB extends compliance timeline for small-biz lending data rule
The 290-day extension mirrors the amount of time the contentious rule was held up in court by a temporary injunction.
By Dan Ennis • June 26, 2024 -
Justin Sullivan via Getty Images
GM subsidiary withdraws ILC charter application
The move comes just one business day after the FDIC approved its first ILC charter in four years. GM's application received approval from a Utah banking regulator June 14.
By Rajashree Chakravarty • June 25, 2024 -
Retrieved from OCC.
OCC looks to revamp bank recovery planning standards
Proposed changes would require banks with $100 billion in assets, rather than $250 billion, to create a plan to respond to the financial effects of severe stress.
By Gabrielle Saulsbery • June 25, 2024 -
Spencer Platt / Staff via Getty Images
Citi fined $13.9M by Germany’s BaFin over 2022 flash crash error
The penalty, announced Thursday, came two days after two British regulators fined the bank £61.6 million ($78.4 million) for the same instance.
By Rajashree Chakravarty • June 21, 2024
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