Fed stress test court case paused until Aug. 1

Trade groups cited the central bank’s “progress” in proposing that lenders’ capital requirements be determined through a two-year average of stress test results.

Citi sells Polish consumer business to VeloBank

Upon closing, it will be the 10th international consumer business Citi has sold since 2021. The bank will maintain its institutional business in Poland, as it has elsewhere, following the sale.

BancFirst to buy Oklahoma lender hit with DOJ redlining order

BancFirst seeks to buy American Bank of Oklahoma, which agreed to pay $1.15 million in August 2023 to settle a Justice Department investigation for failing to monitor and address fair lending risks.

Supreme Court exempts Fed from Trump firings

A carve-out in last week’s SCOTUS emergency decision on agency official firings “poses a puzzle,” because the central bank’s independence rests on the same foundations as other federal agencies, a dissenting justice wrote.

CFPB to yank ‘unlawful’ open banking rule

That move bends to bank groups that filed a lawsuit last year to block the Consumer Financial Protection Bureau rule aimed at making it easier for consumers to move their financial accounts.

DOJ, CFPB seek to end Trustmark redlining consent order early

The agencies argue the bank paid its $5 million penalty and put money in a loan subsidy program. But the case signaled the start of a concerted Biden-era effort to fight lending discrimination.

Santander’s Openbank opens first US physical location

The Miami location "is another opportunity to bridge our digital and in-person experience to deliver a truly differentiated offering,” Openbank US CEO Swati Bhatia said.

TD to cut 2% of workforce, wind down $3B portfolio

The bank expects to record up to $505 million in restructuring charges over the next several quarters, said CFO Kelvin Tran. The portfolio, meanwhile, is tied to its U.S. point-of-sale financing business.

JPMorgan Chase launches geopolitics center

CEO Jamie Dimon has long beat the drum on geopolitical awareness. Now, his bank wants to help clients make sense of it all.

PNC to buy Aqueduct to boost private equity capital-raise potential

The deal is expected to close in midsummer, the companies said. Financial terms were not disclosed.

CFTC’s Kristin Johnson to exit, shrinking team further

Johnson’s pending departure this year follows announcements last week that fellow commissioners Christy Goldsmith Romero and Summer Mersinger would leave at the end of this month.

Inside Ally’s customer referral program

The effort, launched last year, accounts for about 15% of the digital bank’s account volume, an executive said. Now Ally is adding a QR code and wants to use opportune moments to promote the program.

Circle co-founder to build new ‘AI-native’ bank

Catena Labs recently secured $18 million in a seed funding round, which it plans to use to build a bank designed to serve the emerging AI economy, said co-founder and CEO Sean Neville.

FDIC eyes change in reserve ratio calculation

Acting Chair Travis Hill suggested the agency use total liabilities rather than insured deposits as the denominator in the formula. The FDIC on Tuesday also rescinded a bank merger policy update from last year.

House follows Senate in overturning OCC merger review rule

The joint resolution to roll back the regulator’s 2024 merger rule now heads to the president for a signature.

Evolve dodges Yotta lawsuit for now

Yotta’s lawsuit against its former bank partner was dismissed for failing to “plead the ‘who, what, when, where, and how’” of Evolve’s alleged misdoings. Yotta must file an amended complaint by June 2.

JPMorgan’s Dimon talks regulatory changes, crypto

The CEO didn’t mince words Monday on the bank regulatory approach over the last 15 years. Regulators “went so far beyond what was reasonable that they should be embarrassed.”

SEC’s Crenshaw warns of ‘regulatory Jenga’

“When it comes to the stability of our markets, how far are we willing to take our dangerous game? Who would ultimately be the loser when the foundation gives way?” she asked.

Capital One closes Discover deal, agrees to $425M payout

The combination caps a 15-month wait for the two finance behemoths. The $425 million would be restitution to legacy savings account holders who argued they should have received a higher interest rate.

JPMorgan aims to ‘resist’ headcount growth

Although headcount increases in recent years were necessary to support growth, “we do suspect some inefficiency was introduced,” the bank’s CFO said during Monday’s investor day.

Fifth Third gives customers free access to wills

The move reflects the bank’s aims to bolster its benefits for customers and do more with its fintech partners to differentiate itself from competitors, a Fifth Third VP said.

Fed to reduce headcount by 10% by end of 2027

The lower headcount will come from a voluntary deferred resignation program, not layoffs, according to an internal memo.

CFTC will shrink to a two-person team as two commissioners leave

Commissioners Christy Goldsmith Romero and Summer Mersinger will exit at the end of the month. Brian Quintenz awaits confirmation to become the regulator’s chair. 

Hack could cost Coinbase up to $400M: filing

The crypto exchange is offering a $20 million reward for information leading to the hackers’ arrest. Coinbase terminated customer support agents who leaked customer data.

CFPB slashes most of Wise penalty

The U.S. unit of fintech Wise must pay the bureau $45,000 and roughly $450,000 in redress to affected customers – a far cry from the $2.5 million penalty issued in January.