Regulations & Policy
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Permission granted by SoFi
SoFi files for national bank charter with OCC
A national charter would let SoFi operate under a unified set of national regulations instead of the "patchwork of varying requirements" it follows to comply with regulations across 50 states, the company said.
By Anna Hrushka • July 10, 2020 -
Courtesy of Wells Fargo multimedia resources
Wells Fargo may start cutting tens of thousands of jobs this year
The bank's CFO warned last month of such a step. Wells vowed to pause staff reductions as the pandemic escalated. Any announcement — not expected with next week's earnings — could tell other banks that window is over.
By Dan Ennis • July 10, 2020 -
CFPB rolls back 'ability-to-repay' portion of payday lending rule
The provisions would have limited the number of consecutive, short-term loans a borrower could take out, and would have required lenders to verify borrowers' income.
By Dan Ennis • July 08, 2020 -
Kendall Davis/HR Dive
Colorado credit union adds lending to pot banking effort
The move completes a "huge piece of the puzzle" that's missing for cannabis businesses, most of which don't have access to government funding, such as the PPP, the credit union's president says.
By Anna Hrushka • July 08, 2020 -
Permission granted by Edward Jones
Investment company Edward Jones files for ILC charter
"Given market conditions, we believe the need for enhancements to our financial services is more important than ever to our clients as they look to reach their financial goals," Edward Jones Principal Ken Cella said.
By Anna Hrushka • July 06, 2020 -
Citi delays office-return plan in 13 states
Workers' reluctance to take public transport will keep offices below 40% capacity until a vaccine is available, a Citi executive said. The rollback comes as Bank of America indicated its employees would stay remote until Labor Day.
By Dan Ennis • UPDATED: July 5, 2020 at 10:11 a.m. -
Senate passes PPP extension as Fed chair cites middling Main Street demand
The five-week addendum comes amid waning interest in the program — and a slow start for another government-backed vehicle, the Main Street Lending Program, about which Fed Chair Jerome Powell testified Tuesday.
By Dan Ennis • UPDATED: July 6, 2020 at 11:48 a.m. -
(2020). "Holding Wells Fargo Accountable: CEO Perspectives on Next Steps for the Bank that Broke America’s Trust". Retrieved from https://www.youtube.com/watch?v=Sf5D9BprcXg&feature=youtu.be.
Wells Fargo cuts dividend to level it will reveal July 14
Most other big banks will keep their third-quarter shareholder payouts consistent with second-quarter figures, including Goldman Sachs, which the Fed says must maintain a 6.7% stress capital buffer.
By Dan Ennis • June 30, 2020 -
Permission granted by Office of the Comptroller of the Currency
Bank profitability at risk as pandemic slows economy, OCC says
Financial institutions are beginning to see the adverse credit effects of the economic shock brought on by the pandemic, according to the regulator's semiannual report.
By Anna Hrushka • June 30, 2020 -
Supreme Court rules president can fire CFPB chief 'at will'
In a 5-4 decision Monday, the court left the bureau intact but ruled the structure puts too much power in one person's hands.
By Dan Ennis • June 29, 2020 -
JPMorgan tweaks policy to cut customer ties over racist interactions
The bank is following through on a pledge to pay more attention to employee complaints. JPMorgan Chase made diversity training mandatory after a New York Times report and a class-action suit highlighted discrimination at the bank.
By Dan Ennis • June 29, 2020 -
FDIC to launch competition on system to replace quarterly reports
The effort, which debuted Monday and enlists 20 tech companies, would help the regulator keep more timely data on the roughly 3,200 community banks under its purview.
By Dan Ennis • June 29, 2020 -
Fotolia
PPP's quick rollout, rule changes, few safeguards are fraud risks, GAO says
More than $100 billion in loan money is still available through the program. The SBA plans to stop taking new applications Tuesday.
By Dan Ennis • June 26, 2020 -
Anna Hrushka/Banking Dive
Fed orders banks to suspend share buybacks, cap dividends
The restrictions follow the release of the regulator's "sensitivity analysis," which found under the worst-case scenario, the country’s largest banks would lose roughly $700 billion.
By Anna Hrushka • June 26, 2020 -
Permission granted by Office of the Comptroller of the Currency
Community groups sue OCC over anti-redlining revamp
The lawsuit claims the agency's rule decreases bank investment in low- and moderate-income areas and ignores criticism from community stakeholders.
By Anna Hrushka • June 25, 2020 -
Anna Hrushka/Banking Dive
Main Street Lending Program doesn't live up to its name, community banker says
Businesses with up to 15,000 employees or $5 billion in revenue are eligible to participate in the program. But certain requirements, while well-intentioned, are neither attractive nor attainable for most of her clients, one banker says.
By Anna Hrushka • June 23, 2020 -
Fed's 3 pandemic recovery scenarios could determine bank dividends
Alongside its annual stress test, the central bank will measure banks' resilience to a V-shaped, U-shaped and W-shaped economic bounce-back.
By Dan Ennis • June 23, 2020 -
Alabama Extension. (2020). "The image" [Photograph]. Retrieved from Flickr.
SBA follows through on promise to disclose PPP loan recipients
The move comes days after President Donald Trump signed into law a five-week extension of the deadline to file new applications for the program.
By Dan Ennis • UPDATED: July 7, 2020 at 8:20 a.m. -
Courtesy of FDIC
Bank earnings drop 70% in Q1, FDIC report finds
Banks set aside $52.7 billion during the quarter — a 280% increase from the previous year — to prepare for potential loan losses and the implementation of CECL standards.
By Anna Hrushka • June 17, 2020 -
PPP forgiveness process constrains lenders, small businesses, bankers say
In a letter Friday, 47 senators bemoaned the 11-page document as unwieldy as banks repurpose staff for the next stage of coronavirus relief.
By Anna Hrushka • June 15, 2020 -
California strips 'mini-CFPB' from budget
The agency could resurface in spending plans before an Aug. 31 deadline. Some legislators, seeking more input in the agency's establishment, would rather it be created through a stand-alone bill rather than as a line item.
By Dan Ennis • June 15, 2020 -
Permission granted by Office of the Comptroller of the Currency
House passes resolution to overturn OCC's CRA revamp
President Donald Trump has vowed to veto the measure if a simple majority in the Senate allows it to pass. The FDIC chair said her agency wouldn't issue its own rewrite of the rule during the coronavirus pandemic.
By Dan Ennis • UPDATED: June 30, 2020 at 7:04 a.m. -
Anna Hrushka/Banking Dive
Fed opens Main Street Lending Program to small, midsize businesses
The Boston Fed, which is administering the program, posted registration documents on its website and is encouraging financial institutions to begin lending "immediately."
By Dan Ennis • UPDATED: June 15, 2020 at 11:38 a.m. -
Banks' video hiring may be here to stay, but interviewing is changing
Preparation is crucial to avoiding awkward communication when screens replace candidates' in-room presence, executives say.
By Ken McCarthy • June 05, 2020 -
Courtesy of Wells Fargo multimedia resources
Big banks took $11.7B in overdraft fees last year, nonprofit says
About 9% of account holders paid 84% of the $35 fees, according to data from the Center for Responsible Lending, which wants regulators to bar banks from charging for negative balances during the pandemic.
By Dan Ennis • June 04, 2020
