Slow regulatory response led to SVB collapse: Fed’s Daly

“When the outcomes aren't what we want them to be, we all work collectively to make them better going forward,” San Francisco Fed President Mary Daly said.

By Rajashree Chakravarty • July 11, 2023

Bank of America fined $250M over fake accounts, junk fees

In charges that echo Wells Fargo’s 2016 fake-accounts scandal, regulators accused Bank of America employees of opening credit card accounts without customers’ consent to reach sales goals.

By Anna Hrushka • July 11, 2023

Explore the Trendline➔

Top 5 stories from Banking Dive

Amid a swell of activity, financial institutions large and small are leaning into their aspirations. For PNC, it’s scale. For some fintechs, it’s a charter. For Millbury National Bank, it may simply be niceness.

By Banking Dive staff

9 takeaways from Barr’s capital requirements recommendations

Banks with assets of $100 billion or more would have to account for unrealized losses and gains in available-for-sale securities when calculating regulatory capital, the Fed official said Monday.

By Dan Ennis • July 10, 2023

SVB Financial sues FDIC to recover $1.9B

The money seized by the FDIC during Silicon Valley Bank’s failure should be generating more than $100 million in annual interest at the current rate, the filing claimed.

By Rajashree Chakravarty • July 10, 2023

Criminals stole $20M from Revolut via payment loophole: report

Differences in the firm’s U.S. and European systems meant the neobank would use its own money to erroneously refund certain declined payments, the Financial Times reported.

By Anna Hrushka • July 10, 2023

[PODCAST] Digital identity opportunities in the financial services industry

This podcast explores the policy and regulatory trends shaping digital identity, including age-gating and social media bans.

By Banking Dive's studioID • July 10, 2023

Philadelphia Fed restricts Quontic’s capital distribution

Quontic’s holding company must submit a capital plan and detail its cash flow projections for the remainder of 2023. The company may not pay dividends or engage in share repurchases without the regulator’s sign-off.

By Anna Hrushka • July 7, 2023

Barclays boosts parental leave for US employees

The bank, as of July 1, is giving all new U.S.-based parents 16 weeks of leave and allows birth mothers an additional six to eight weeks of leave to recover. That matches a policy Morgan Stanley launched in 2021.

By Dan Ennis • July 7, 2023

Goldman should disclose profit from SVB bond sale: Warren

In a letter addressed to Goldman CEO David Solomon, Sen. Elizabeth Warren, D-MA, accused the firm of profiting “at nearly every stage of Silicon Valley Bank’s collapse.”

By Anna Hrushka • July 6, 2023

Judge OKs sale of SVB investment bank to its founder

Judge Martin Glenn last week refused to approve the deal because of a provision that would have shielded executives from liability associated with Silicon Valley Bank’s failure in March. Company officials added some restrictions.

By Dan Ennis • July 6, 2023

Kraken ordered to hand over user info to IRS

The IRS requested the information earlier this year, but Kraken refused. The tax agency then asked a judge to enforce a summons issued to the exchange’s holding company.

By Gabrielle Saulsbery • July 6, 2023

SoLo Funds to bring peer-to-peer lending platform to Nigeria

Nigeria’s growing fintech sector made the region an attractive entry point to the continent, SoLo Funds founder Rodney Williams said.

By Anna Hrushka • July 5, 2023

BofA, Citi see discrepancies in Fed stress tests

Bank of America on Wednesday said it would increase its dividend to 24 cents per share from 22. The bank’s internal calculations projected far greater losses under the stress test scenario than the Fed.

By Dan Ennis • July 5, 2023

Fed, FDIC, OCC, NCUA push short-term CRE loan accommodations

The agencies asked lenders “to work prudently and constructively with creditworthy borrowers during times of financial stress,” in an update to the 2009 commercial real estate loan guidelines.

By Rajashree Chakravarty • June 30, 2023

Master account database spotlights Quarles’ banking venture

The former Fed official is an investor in Currency Reserve, an entity seeking a master account. Quarles’ ties to the central bank, however, could reignite a debate on conflict of interest.

By Anna Hrushka • June 30, 2023

Bank failures signal need for stronger supervision, regulation: Powell

“The events of the past couple of months would have been much more difficult to manage had the largest banks been undercapitalized or illiquid,” the Fed chair said Thursday.

By Rajashree Chakravarty • June 29, 2023

Largest banks weathered hypothetical $541B hit, Fed says

All 23 of the banks subject to stress tests remained above their minimum capital requirements in this year’s scenario, which featured a severe downturn in real estate markets.

By Anna Hrushka • June 29, 2023

Yellen, regulators took ‘wrong lessons’ from bank failures: Warren

In a letter, the senator asked why the Justice Department relinquished some responsibility in its oversight of competition. She also asked when regulators would release updated merger review guidelines.

By Rajashree Chakravarty • June 28, 2023

Fraudsters stole more than $200B in COVID relief loans, watchdog says

At least 17% of $1.2 trillion disbursed through the pandemic-era PPP and EIDL programs may have gone to questionable characters, the SBA's Office of Inspector General said Tuesday.

By Gabrielle Saulsbery • June 28, 2023

Fed’s Bowman wants emphasis on supervision, not buffer

“Increasing capital requirements simply does not get at this underlying concern about the effectiveness of supervision,” the regulator said Sunday in Austria.

By Rajashree Chakravarty • June 26, 2023

House bill would require large banks to have chief risk officers

Under the measure, banks with $50 billion or more in assets must notify their federal and state regulators within 24 hours of a risk chief vacancy. Banks would be subject to an asset cap if the post is open for more than 60 days.

By Anna Hrushka • June 26, 2023

Tougher capital requirements for midsize banks imminent: Gruenberg

The long-awaited final update to the 2010 Basel III framework will require banks with over $100 billion in assets to hold more capital to withstand unexpected stress, the FDIC chair said.

By Rajashree Chakravarty • June 23, 2023

Citi to link attendance policy compliance with pay packages

Managers have been told to discuss consequences with employees who regularly flout the bank's requirement that hybrid workers come to the office three days a week, Bloomberg reported.

By Gabrielle Saulsbery • June 23, 2023

Southern states have fewer banks, higher interest rates: CFPB

Two reports published Wednesday are a part of the agency’s work to explore regional trends in consumer finances, especially in rural areas.

By Rajashree Chakravarty • June 22, 2023

Fed nominees stress inflation control but otherwise stay vague

“I think we have to deal with always grappling with the trade-offs between ... making banks more resilient and sound, and credit availability,” Philip Jefferson, nominee for Fed vice chair, said Wednesday at a hearing.

By Dan Ennis • June 22, 2023