Regulatory challenges more prominent in eyes of fintech industry leaders this year

Private firms are adopting a more defensive posture, delaying new funding rounds, planning for modest growth and addressing regulatory risks, according to a report.

By Gabrielle Saulsbery • Nov. 23, 2022

Fed, FDIC order Citi to address data management weaknesses

Citi must submit a “mapping document” addressing the issues by Jan. 31. The bank promised “more streamlined systems that improve the quality of our data as well as the speed with which it can be accessed.”

By Anna Hrushka • Nov. 23, 2022

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Top 5 stories from Banking Dive

Since the approval of Capital One’s acquisition of Discover, banks have increasingly waded into new deals. Beyond that, they’ve doubled down on strategy, from organic growth to branch placement to app design.

By Banking Dive staff

Goldman Sachs fined $4M over ESG investment policy failures

The bank’s asset-management unit “had several policies and procedures failures involving the ESG research its investment teams used to select and monitor securities,” the SEC said.

By Anna Hrushka • Nov. 23, 2022

Lawmakers question SoFi CEO, regulators over crypto activity

The Fed gave SoFi two years from its acquisition of a California bank to divest from a digital-assets business, the lawmakers wrote. But two months later, SoFi touted an “expansion” of crypto services.

By Rajashree Chakravarty • Nov. 22, 2022

JPMorgan Chase bumps up parental leave to 16 weeks

The bank, starting Jan. 1, is also increasing its bereavement leave and offering up to four weeks of paid time off for employees to care for a seriously ill spouse, domestic partner, child or parent.

By Dan Ennis • Nov. 18, 2022

New FTX CEO blasts ‘complete failure of corporate controls’ under Bankman-Fried

CEO John Ray didn’t mince words in discussing mismanagement of the crypto exchange by its founder and others.

By Gabrielle Saulsbery • Nov. 17, 2022

Kentucky banking trade group sues state AG over ESG policy demands

Attorney General Daniel Cameron is exceeding his legal authority, curbing free speech and wasting taxpayer money by asking the nation’s six largest banks to detail their ESG-tied lending, a trade group argues.

By Dan Ennis • Nov. 17, 2022

Treasury calls for more fintech oversight

Fintechs are re-bundling core banking services outside the bank regulatory perimeter and contributing to competitive pressure in the banking industry, the Treasury Department said in a 122-page report.

By Anna Hrushka • Nov. 16, 2022

NY Fed, banks launch new 12-week CBDC project

Citi, Wells Fargo, BNY Mellon, U.S. Bank, PNC Bank, TD Bank, Truist, HSBC and Mastercard are set to participate in the proof-of-concept trial.

By Rajashree Chakravarty • Nov. 16, 2022

Regulators defend their caution on crypto in Senate panel hearing

Some GOP lawmakers blasted a dearth of guidance from the OCC, Fed and FDIC, and one suggested it's up to Congress to establish the rules.

By Dan Ennis • Nov. 16, 2022

Biden intends to nominate Gruenberg to lead FDIC again

The announcement comes on the first business day after Democrats were assured a majority in the Senate, and ahead of two appearances this week by Gruenberg on Capitol Hill.

By Dan Ennis • Nov. 15, 2022

Custodia Bank’s master account lawsuit against Fed advances

Custodia’s claim that its master account application has been “unreasonably delayed” by the regulator holds water, a U.S. district court judge ruled Friday.

By Anna Hrushka • Nov. 15, 2022

OceanFirst, Partners call off $186M merger

OceanFirst had closed seven acquisitions since 2015 but cited regulatory delays in the Partners deal’s disintegration. The tie-up recently passed its initial one-year deadline.

By Rajashree Chakravarty • Nov. 14, 2022

CFPB’s crypto-asset complaints highlight scams, fraud

The number of complaints has surged over the past two years, with the rise of price volatility, the bureau’s bulletin found Thursday.

By Rajashree Chakravarty • Nov. 11, 2022

Elon Musk wants to turn Twitter into ‘the people’s financial institution’

During a Thursday call with Twitter staff, Musk shared his plans to allow users to maintain a cash balance on the platform. He also hinted at the possibility of offering loans.

By Anna Hrushka • Nov. 11, 2022

Banks create guide to manage fintech due diligence

The framework isn’t meant to replace existing regulatory guidance, but rather help banks better implement it, said Alloy Labs Alliance CEO Jason Henrichs.

By Anna Hrushka • Nov. 9, 2022

Scharf is still on Warren’s bad side, but he’s not the only one

Federal Reserve Chair Jerome Powell also finds himself in the senator's cross-hairs after two ethics incidents at the central bank.

By Gabrielle Saulsbery • Nov. 8, 2022

NYCB-Flagstar, Columbia-Umpqua mergers see forward motion

The Federal Reserve gave final approval on the first deal Monday, while Columbia revealed two buyers for 10 branches the Justice Department ordered it to divest.

By Dan Ennis • Nov. 8, 2022

U.S. Bank wants employees back in the office 3 days a week

CEO Andy Cecere said he wants the change to be a choice, not a mandate. "The transition doesn't have to happen overnight, but it should be something you commit to like any new habit," he wrote.

By Gabrielle Saulsbery • Nov. 7, 2022

Wells Fargo faces $1B CFPB settlement over consumer abuses: report

The reported record-settlement falls in line with CFPB Director Rohit Chopra’s mission to impose stricter penalties on banks that repeatedly violate consumer protection laws.

By Anna Hrushka • Nov. 7, 2022

Deutsche may face BaFin penalty over slow AML progress

A warning Friday suggests the German regulator wants quicker action from the bank in response to 2018 and 2019 orders. But Deutsche said it’s “fully aligned” with BaFin ahead of a mid-2023 deadline.

By Dan Ennis • Nov. 7, 2022

Banks processed $1.2B in ransomware-related payments in 2021, FinCEN says

It’s not clear if an uptick in ransomware-related filings signifies an actual increase in ransomware-related incidents, FinCEN noted. The bump could be related to improved reporting and detection, the agency said.

By Rajashree Chakravarty • Nov. 3, 2022

CFPB investigating U.S. Bank over pandemic-era unemployment payments

The bank is the latest lender to face regulatory scrutiny over its administration of the payments. Bank of America was handed a $225 million fine in July after regulators said its efforts to tamp down fraud went too far.

By Anna Hrushka • Nov. 3, 2022

Wells Fargo the subject of SEC probe, CFPB settlements

As the regulator questions the bank’s hiring practices, Wells Fargo also seeks to settle with a consumer watchdog on lending practices.

By Gabrielle Saulsbery • Nov. 1, 2022

Customers Bank to pay KServicing $58M over PPP dispute

Under the settlement, the bank will pay the bankrupt small-business loan servicer $23 million and forfeit nearly $35 million in servicing and referral fees KServicing withheld as part of a PPP loan contractual dispute.

By Anna Hrushka • Nov. 1, 2022