Regulations & Policy
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Fed cites Washington state bank embroiled in Ponzi scheme allegations
UniBank and its parent company have been named in lawsuits alleging the bank facilitated loans that were used to repay earlier investors of water and oil-and-gas firms.
By Rajashree Chakravarty • Oct. 25, 2024 -
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ColumnDive Deposits: Morgan Stanley chair may be a great gig. But emeritus is where it’s at.
Ted Pick was named to succeed James Gorman as chair. But in its grand tradition of cake and eating, the bank retained Gorman as a non-employee adviser and will pay him $400,000 a year through the end of 2026.
By Dan Ennis • Oct. 25, 2024 -
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TrendlineArtificial intelligence
A Federal Reserve official warned about the AI “arms race” banks face against cyber threats. But what about their race against each other?
By Banking Dive staff -
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NYCB postpones profitability goal to 2026
The embattled bank recorded a $280 million loss for the third quarter and said it expected to post a loss for 2025, while whittling its profit forecast to 75 cents to 80 cents per share rather than $1.25.
By Caitlin Mullen • Oct. 25, 2024 -
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Industry balks at FDX standard-setting monopoly
Regulators and industry participants worry that FDX will have an unfair monopoly and will advantage its own members if no other organization applies.
By Patrick Cooley • Oct. 24, 2024 -
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NY AG adds to scrutiny of Capital One-Discover deal
New York Attorney General Letitia James is probing the proposed acquisition’s effects on competition, arguing “often vulnerable New Yorkers with subprime credit scores” could see impact.
By Caitlin Mullen • Oct. 24, 2024 -
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SoLo Funds hit with lawsuit over ‘tips,’ ‘donations’ features
The proposed class action filed last week in a California federal court alleges the fintech misleads borrowers with advertising that deceptively claims to offer zero-interest loans and no hidden fees.
By Rajashree Chakravarty • Oct. 23, 2024 -
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Goldman, Apple to pay CFPB $89.8M over Apple Card issues
The bank and tech firm failed to address disputed transactions from their joint Apple Card program, the bureau alleged, and misled cardholders about interest-bearing products.
By Gabrielle Saulsbery • Oct. 23, 2024 -
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Trade groups challenge CFPB’s open banking rule on Day 1
Liability over data security emerges as a top concern as the Bank Policy Institute and a Kentucky trade group and bank sue the bureau, arguing overreach.
By Caitlin Mullen • Oct. 23, 2024 -
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Truist to pay $9.1M over lead poisoning payouts
Truist predecessor SunTrust approved disbursements that weren’t in the best interests of beneficiaries of trust accounts linked to a lead poisoning settlement, the Justice Department said.
By Caitlin Mullen • Oct. 22, 2024 -
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CFPB issues final rule on open banking
Payment apps are included in the data-control rule, in a change from last year’s proposal. Banks and credit unions with less than $850 million in assets are exempt.
By Dan Ennis • Oct. 22, 2024 -
Anna Hrushka/Banking Dive
Oklahoma bank fails, in-state peer buys insured deposits
Alleged "fraud" is believed to be behind the First National Bank of Lindsay's failure, the second U.S. bank collapse this year. The FDIC’s Deposit Insurance Fund will take a roughly $43 million hit.
By Rajashree Chakravarty • Oct. 21, 2024 -
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Fiserv may grab competitive edge with new bank charter
The payments processor can undercut rivals on price because it won’t be paying bank fees, industry consultants say.
By Patrick Cooley • Oct. 21, 2024 -
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OCC hits Florida bank over AML concerns
Maitland-based Axiom Bank agreed to revamp its BSA/AML program and look back at its suspicious activity reporting history.
By Gabrielle Saulsbery • Oct. 18, 2024 -
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OCC bans ex-Citi, JPMorgan bankers over fraud, data sale allegations
In one instance, a banker convicted of prior fraud took her sister’s identity to regain employment at Citi, the OCC said.
By Rajashree Chakravarty • Oct. 18, 2024 -
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FDIC’s bank failure fund may be repaid ahead of schedule
The reserve ratio for the Deposit Insurance Fund will reach the statutory minimum level in 2026, ahead of a 2028 deadline, the agency’s staff projected, though that estimate is “subject to uncertainty.”
By Caitlin Mullen • Oct. 18, 2024 -
Anna Hrushka/Banking Dive
FDIC greenlights FAA vet to lead ‘professional conduct’ office
The move comes nearly a year after dozens of employees alleged the agency tolerated rampant sexual misconduct and retaliation in a Wall Street Journal exposé.
By Dan Ennis • Oct. 17, 2024 -
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Banks must be wary of AI security risks, regulator says
NYDFS Superintendent Adrienne Harris says financial services firms have to keep their cybersecurity measures up to snuff, lest they fall victim to cyber threats.
By Gabrielle Saulsbery • Oct. 17, 2024 -
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Discover discloses SEC accounting criticism
The agency disagrees with the way the company is allocating card misclassification charges, Discover said in its third-quarter earnings report.
By Patrick Cooley • Oct. 17, 2024 -
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Fairway to pay $9.9M in redlining settlement
The lender allegedly discouraged residents of Black-majority neighborhoods from applying for mortgages. Fairway said the complaint “appears to be intentionally inflammatory in nature.”
By Gabrielle Saulsbery • Oct. 16, 2024 -
(2024). [Photo]. Retrieved from Federal Reserve.
Credit unions, fintechs should face same regulations as banks: Fed’s Bowman
“[Community banks] are also subject to a broader range of restrictions imposed by regulatory requirements…the disparity in the legal framework can have a distortive effect on competition,” Bowman said.
By Rajashree Chakravarty • Oct. 15, 2024 -
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Citi ‘can walk and chew gum at the same time’: Fraser
CEO Jane Fraser cited the bank’s ability to cut expenses while addressing the data, risk and control flaws regulators have flagged.
By Caitlin Mullen • Oct. 15, 2024 -
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Harris tries to court Black men voters with forgivable loans, crypto
Vice President Kamala Harris’ plans are part of her Opportunity Economy pledge, “an economy where people don't just get by, but get ahead,” and come as polls show she could stand to gain more support from Black men voters.
By Gabrielle Saulsbery • Oct. 14, 2024 -
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Sponsored by Shield ComplianceFrom stigma to strategy: Bridging the gap between bankers and cannabis operators
Move past stereotypes. Understanding today’s cannabis businesses allows financial institutions to boost their balance sheets while contributing to the sustained growth of the market.
By Tony Repanich • Oct. 14, 2024 -
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Philly-area credit union to pay $6.5M in DOJ redlining settlement
Citadel Federal Credit Union failed to provide mortgage lending services to residents of predominantly nonwhite neighborhoods between 2017 and 2021, the agency said.
By Rajashree Chakravarty • Oct. 11, 2024 -
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Dimon won’t rule out government role
The JPMorgan CEO largely dismissed the idea of serving in the next presidential administration, but he said, “I don’t make promises.” Wells Fargo’s CEO, meanwhile, said work on the bank’s AML issues is well underway.
By Caitlin Mullen • Oct. 11, 2024
