Regulations & Policy: Page 34
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What killed Signature? Poor management, says FDIC.
An FDIC report that published Friday also described staffing shortages in the regulator's examiner arm.
By Gabrielle Saulsbery • April 28, 2023 -
JPMorgan employees blast return-to-office order: report
Staffers, citing long commutes and work-life balance, swamped the bank’s internal messaging forum with requests that the firm reconsider the policy, according to Reuters.
By Rajashree Chakravarty • April 28, 2023 -
Trendline
Fraud and AML in banking
The past year has been one of reckoning with regard to fraud — from TD’s $3 billion AML penalty to the continuing punitive phase connected to PPP misdeeds, crypto bankruptcies and pig butchering.
By Banking Dive staff -
Texas bank, trade group sue CFPB over small-business data collection rule
Requiring lenders to gather data on borrowers, including those from nonwhite-, LGBTQ+- and women-owned small businesses, would eliminate small lenders from the market, plaintiffs argued.
By Rajashree Chakravarty • April 27, 2023 -
OCC, FDIC flag ‘unfair, deceptive’ overdraft practices
Regulators highlighted several bank overdraft practices that could result in violations of Dodd-Frank Act rules, as well as Section 5 of the Federal Trade Commission Act.
By Anna Hrushka • April 27, 2023 -
Banks’ use of ChatGPT-like AI comes under CFPB’s watch
The agency is examining how generative AI tools could propagate bias or misinformation and create risk in the financial services sector, CFPB Director Rohit Chopra said.
By Anna Hrushka • April 26, 2023 -
SVB, Signature CEOs unlikely to face clawbacks any time soon
Neither bank made a restatement to trigger a clawback. New legislation faces hurdles. But bank executives may have to give pay back if they’re found liable for wrongdoing in an FDIC investigation.
By Robert Freedman • April 26, 2023 -
Coinbase sues SEC to force agency to share its thinking
The crypto exchange has long sought clarity over how the SEC defines a security but says the agency threatens enforcement actions without explaining its reasoning.
By Dan Ennis • April 25, 2023 -
First Republic customers withdrew more than $100B in Q1
The ailing firm, which received a $30 billion infusion from 11 banks last month, said it plans to reduce its workforce by as much as 25%.
By Anna Hrushka • April 25, 2023 -
SVB Financial Group’s CEO, CFO resign
The former Silicon Valley Bank parent did not name a replacement for the CEO role, but said Nicholas Grossi, managing director of advisory firm Alvarez & Marsal, will serve as the company’s interim CFO.
By Anna Hrushka • April 24, 2023 -
FSOC floats new framework to tag nonbanks as systemically important
Trump-era guidance “created inappropriate hurdles” that gave the process “an unrealistic timeline” for addressing emerging risks, Treasury Secretary Janet Yellen said.
By Dan Ennis • April 21, 2023 -
Credit Suisse investors sue Finma over $17B write-down
The lawsuit is the first to challenge the Swiss regulator’s decision to render roughly $17 billion worth of Credit Suisse AT1 debt valueless during the $3.25 billion government-backed deal.
By Rajashree Chakravarty • April 21, 2023 -
Regulators at odds on crypto blame for March bank closures
SEC Chair Gary Gensler tied crypto business to bank failures in front of House lawmakers Tuesday. NYDFS's Adrienne Harris countered him the following day.
By Gabrielle Saulsbery • April 20, 2023 -
CFPB: Staffer breached data on 256,000 consumer accounts
The agency, which notified lawmakers of the incident last month, said the now-fired employee sent to a personal email account two spreadsheets containing names and transaction-specific account numbers.
By Anna Hrushka • April 20, 2023 -
Open banking might affect deposit outflows, OCC’s Hsu says
“An open banking culture that ... puts trust above other objectives, including growth and profit, will succeed and thrive over time,” said Acting Comptroller Michael Hsu.
By Rajashree Chakravarty • April 20, 2023 -
Recent bank failures won’t affect deposit insurance restoration timeline: FDIC
The regulator said it will issue a notice-and-comment rulemaking in May regarding the special assessment.
By Anna Hrushka • April 18, 2023 -
Stablecoin regulation draft bill published ahead of hearing
The measure would require stablecoin issuers to have reserves that back the digital assets on an “at least one-to-one basis.”
By Gabrielle Saulsbery • April 18, 2023 -
Small banks should be exempt from FDIC special assessment: ICBA
Large banks should be on the hook for the fee, since they would be the main beneficiaries of the FDIC’s decision to backstop uninsured deposits at SVB and Signature Bank, ICBA CEO Rebeca Romero Rainey said.
By Anna Hrushka • April 17, 2023 -
Fed approves UBS acquisition of Credit Suisse’s US subsidiaries
UBS must submit an implementation plan within three months of the merger's closing to address the structure, integration and business delineations of the combined organization, the central bank said.
By Rajashree Chakravarty • April 17, 2023 -
Inflation is still far too high, Fed’s Waller says
Monetary policy needs to be tightened further, the central bank official said Friday, suggesting interest rates could rise again in May.
By Gabrielle Saulsbery • April 17, 2023 -
Fed’s Bowman urges more support of de novo banks
As the number of banks continues to decline in the U.S., regulators should consider lowering upfront capitalization requirements of de novo institutions, Federal Reserve Governor Michelle Bowman said.
By Anna Hrushka • April 17, 2023 -
FTX has recovered more than $7.3B during bankruptcy
FTX’s chief bankruptcy lawyer said in a Wednesday court hearing that the exchange is considering a reboot, but that it's just one of many options.
By Gabrielle Saulsbery • April 14, 2023 -
More filings allege JPMorgan execs knew of Epstein’s sex crimes
The risk management team flagged Epstein for making multiple cash withdrawals of $40,000 to $80,000 each month, court filings show.
By Gabrielle Saulsbery • April 13, 2023 -
Trump rollbacks not to blame for SVB failure, FDIC vice chair says
FDIC Vice Chair Travis Hill pointed to SVB’s “mismanagement of interest rate risk,” adding that policymakers should focus on filling “evident holes in our framework, rather than just trying to undo policies of the past.”
By Anna Hrushka • April 13, 2023 -
SBA to open flagship lending program to fintechs
A new rule, which takes effect May 11, ends a 40-year moratorium on admitting new nonbank lenders to the agency’s 7(a) loan program.
By Anna Hrushka • April 12, 2023 -
JPMorgan wants managing directors in office 5 days a week
“Our leaders ... have to be visible on the floor, they must meet with clients, they need to teach and advise, and they should always be accessible for immediate feedback and impromptu meetings,” the bank’s operating committee said.
By Dan Ennis • April 12, 2023