AMERICAN BANKER

#MeToo fallout, the frustrating Fed and the changing role of the CMO

Fri, 03/30/2018 - 20:32
Talk about a #MaleFail: how shining a light on harassment could have unintended consequences for women in financial services. The New York Fed is dealing with a backlash of its own. Chief marketing officers like Citi’s Jennifer Breithaupt are playing an important role in product development. Also, new initiatives target bias on Slack and in Shakespeare.

Is low pay hurting banks in the battle for tech talent?

Fri, 03/30/2018 - 18:03
U.S. banks lag the technology, telecommunications and energy sectors in what they pay employees, according to new data. The gap suggests that the industry may not be the acting aggressively enough to remake itself for the digital age.

Consumers crave automation in home-equity lending: J.D. Power

Fri, 03/30/2018 - 14:42
Banks that scored high in customer-satisfaction ratings did so for their front-line service, not their tech capabilities, study finds.

Judge’s ruling a mixed bag for banks, credit unions

Fri, 03/30/2018 - 03:24
A federal judge struck down two provisions of the NCUA's field-of membership rule, while upholding two others.

FHFA still eyeing 2019 for implementation of new credit score model

Thu, 03/29/2018 - 23:00
The annual progress report on the Fannie Mae and Freddie Mac conservatorships reiterated that a new credit score model will likely not be operational until after the implementation of a new Single Security Initiative.

KeyBank to sell insurance unit to focus on core banking

Thu, 03/29/2018 - 22:40
The Cleveland company acquired the business through its 2016 purchase of First Niagara Financial Group.

'Stolen' funds returned, MUFG's ambitions and a 30-minute mortgage: Top stories of the week

Thu, 03/29/2018 - 22:36
A BankThink argues that Treasury's GSE cash infusions are just the return of stolen money; MUFG wants its Union Bank to be one of the nation's 10 largest; fintech promises a 30-minute mortgage; and more.

Fed launches study of causes and effects of payments fraud

Thu, 03/29/2018 - 21:42
The announcement comes after a Federal Reserve Board task force issued a report in September that said it would further examine options for modernizing the U.S. payments system.

Buyer to seller: Clean up your books to get the most from the deal

Thu, 03/29/2018 - 21:42
Renasant is requiring Brand Group to sell $55 million in classified loans before closing the deal, while attaching an incentive for the seller to get as much as possible for those sales.

Blockchain collective snags big fish: Ripple

Thu, 03/29/2018 - 21:17
Becoming a member Hyperledger fits Ripple’s ideal of allowing different blockchains or distributed ledgers to communicate with each other.

If regulators can’t fix bank culture, who can?

Thu, 03/29/2018 - 20:23
Policies to shore up banks’ corporate cultures have remained a low priority even though some regulators want to attack the issue head on. Strengthening a firm’s ethical values may best be left to a bank’s internal brass.

Don't let next financial crisis catch you off guard

Thu, 03/29/2018 - 19:45
Banks should ensure that their employees are nimble enough to react when unexpected situations arise, just as many had to do during the 2008 crisis.

When it comes to emojis, banks just ¯\_(ツ)_/¯

Thu, 03/29/2018 - 18:58
Customers are sprinkling symbols into their texts, and it's a challenge for banks to fine-tune systems to support the use of the cartoon code in communications.

'Those deposits would be gone in a flash': Comments of the week

Thu, 03/29/2018 - 18:20
Readers react to a drive for more public banks, weigh in the launch of an online-only bank, chime in on what millennials need and more.

Barclays to pay $2 billion to settle mortgage securities suit

Thu, 03/29/2018 - 16:07
The investigation targeted 36 residential mortgage-backed securities deals involving $31 billion worth of loans, more than half of which defaulted, according to the Justice Department.

Consumers lose when small banks can't compete

Thu, 03/29/2018 - 15:58
Burdensome regulation has made it hard for community institutions to operate alongside bigger rivals, leaving consumers with less choice and more expensive banking options.

Renasant takes big leap in Atlanta with $453M acquisition

Thu, 03/29/2018 - 15:54
The Mississippi company will gain nearly $2 billion in loans after it buys Brand Group Holdings.

Amazon’s next challenge: Teens without cards, checking accounts

Thu, 03/29/2018 - 15:42
Amazon.com has millennial shoppers nailed down. And their parents. And most of their grandparents. But one group of potential customers has eluded the world's biggest internet retailer: Teenagers.

Gunmaker gets loan from JPMorgan, Franklin after others said no

Thu, 03/29/2018 - 15:24
For Remington Outdoor Co., one of the oldest firearms makers in the U.S., not even going bankrupt is easy these days.

Equifax gets new CEO; CEO Cryan committed to Deutsche Bank

Thu, 03/29/2018 - 15:10
Mark Begor, a former long-time GE Capital executive, faces lots of challenges as the credit bureau recovers; CEO dismisses “widespread rumors” that the bank wants to replace him.

Two-pronged effort: BofA beefs up robo investing, will add 300 advisers

Thu, 03/29/2018 - 15:02
The bank is providing Merrill Edge's do-it-yourself clients with more automated stock and portfolio research, but it plans to hire more financial representatives for those who want in-person advice in branches.

Larry Summers to step down from LendingClub's board

Thu, 03/29/2018 - 01:00
No reason was given for his exit by the Silicon Valley lender, which named another prominent economist, Susan Athey of Stanford, to its board of directors.

Rising compliance costs are hurting customers, banks say

Thu, 03/29/2018 - 00:27
A majority of midsize and large banks complain that red tape is mounting and that they are passing on higher regulatory costs to customers and have less flexibility in designing products, according to a new survey by the RMA.

CFPB seeks comment on guidance process as part of Mulvaney review

Wed, 03/28/2018 - 23:37
The new request for information is the 10th in the series that is part of acting Director Mick Mulvaney’s “call for evidence” to assess the CFPB’s overall effectiveness.

Deutsche Bank said to weigh trading cuts as CEO vows to stay on

Wed, 03/28/2018 - 23:02
Deutsche Bank is said to be conducting a fresh review of its trading businesses, an overhaul that CEO John Cryan is pursuing to help restore profitability amid reports that the bank is seeking to replace him.

FDIC fines bank in N.J. and affiliate over debt settlement loans

Wed, 03/28/2018 - 23:00
The agency said Cross River Bank and an affiliated debt settlement company misled customers into thinking a debt consolidation program would settle their debts and boost their creditworthiness.

TD Bank adopts nCino’s digital lending platform

Wed, 03/28/2018 - 22:55
The Canadian bank becomes the largest institution to implement the fintech firm’s Bank Operating System technology.

Reg relief = cost savings, right? Not so fast

Wed, 03/28/2018 - 21:36
One purpose of the Senate bill was for small banks to rein in skyrocketing costs, but some bankers question whether the changes will save them money, and adapting to the reforms may even increase spending.

N.Y. Fed doesn’t need a regulator who whiffed on Wells

Wed, 03/28/2018 - 20:05
San Francisco Fed President John Williams is not suited to lead the most important of the regional Fed banks, given his inability to detect the phony-accounts problems at Wells Fargo. He also lacks of Wall Street experience.

A mortgage in 30 minutes? Fintech says it’s coming

Wed, 03/28/2018 - 19:05
Lenda, launched in 2014, currently makes mortgages start to finish in two weeks. But it's aiming to make it a process that can be finished on a borrower's lunch break.

Apathy, blind spots and fixes: 10 insights on workplace harassment

Wed, 03/28/2018 - 19:03
Which industries have the highest prevalence of unwanted sexual conduct in the workplace? Are large or small companies more likely to have issues? Will the #MeToo cultural movement have a lasting impact? Get the key findings from a SourceMedia survey of 3,000 people.

FHFA announces start date for new common mortgage security

Wed, 03/28/2018 - 18:50
After several years of preparation, Fannie Mae and Freddie Mac will start issuing a new, common mortgage-backed security starting June 3, 2019, the Federal Housing Finance Agency said Wednesday.

Inside BBVA's plan to beat fintechs at personal loans

Wed, 03/28/2018 - 18:37
Some investors fear BBVA is taking a big risk by getting into unsecured personal lending long after online lenders have established themselves, but bank officials argue the bank’s cost of funds and in-depth knowledge of its customers will help it to outdo the competition.

From strip clubs to massages: When clients are sexually inappropriate

Wed, 03/28/2018 - 18:37
It’s tough enough to grapple with sexual harassment in the workplace. It’s just as complex when clients are involved.

Looser capital rules could stabilize mortgage servicing, banks say

Wed, 03/28/2018 - 18:20
Banks would welcome a proposal to loosen Basel III capital restrictions because it would make holding mortgage servicing rights easier and stem the recent exodus of depositories from the servicing business, executives said.

A parting warning from FDIC's Hoenig on big-bank rules

Wed, 03/28/2018 - 18:19
In his last major speech as the agency’s No. 2, Thomas Hoenig said it would be a “serious policy mistake” to relax measures such as the supplementary leverage ratio, but he was more open to regulatory relief in other areas.

House Dems call to subpoena Chicago banker linked to Russia probe

Wed, 03/28/2018 - 17:58
Two Democrats on the House Oversight Committee asked the panel's Republican chairman to issue a subpoena for documents related to Stephen Calk, whose bank made loans to former Trump campaign manager Paul Manafort.

Housing bubble or not, the real estate market is in trouble

Wed, 03/28/2018 - 17:21
Despite soaring home prices, other factors needed to inflate a housing bubble are absent from the real estate market. But experts warn falling home values and rising mortgage defaults are inevitable, even if conditions naturally cool off.

Equifax names Warburg Pincus exec as CEO in wake of data breach

Wed, 03/28/2018 - 16:29
The hiring of Mark Begor comes as the credit bureau has been shuffling its top managers since disclosing last year that hackers were able to access the personal data of 145.5 million U.S. consumers.

Petal, WebBank launch card for 'credit invisibles'

Wed, 03/28/2018 - 16:09
The fintech is offering a normal-rate, unsecured credit card for people with no credit or a thin file. Petal considers how much money consumers make, the bills they pay on a monthly basis, and trends in volatility in their income and expenses.

Instead of dreading Amazon, try emulating it

Wed, 03/28/2018 - 16:02
Traditional financial institutions would gain from adopting the innovative, consumer-focused mindset Amazon promotes. Hiring executives away from the e-commerce giant could help.

Warren questions Williams’ fit at N.Y. Fed; U.S. banks’ big U.K. pay gaps

Wed, 03/28/2018 - 14:26
Senator is concerned about the San Francisco Fed chief’s track record; the gaps at three big banks are among the largest.

A #MeToo backlash is brewing in banking

Wed, 03/28/2018 - 03:01
Optimism that the #MeToo movement will have a positive influence is high among bankers who participated in a recent survey on sexual harassment. But there is also concern that it could lead to gender discrimination in hiring and mentoring.

Addressing a grave situation by lending to cemeteries

Tue, 03/27/2018 - 23:54
Live Oak took two years developing a loan for cemetery operators, a group that faces challenges with financing for property improvements.

Online lender Upstart is said to seek $100 million from investors

Tue, 03/27/2018 - 23:45
Even as many venture capitalists retreat from the online lending industry, Upstart Network is hoping to find investors still willing to bet on the business.

Digital mortgages slowly making their way into servicing

Tue, 03/27/2018 - 23:27
Servicers are still trying to figure out how they can best take advantage of the growing use of electronic notes and other digital mortgage tools by lenders and the secondary market.

Farmers & Merchants in Calif. to buy like-minded ag lender

Tue, 03/27/2018 - 22:41
The company has agreed to acquire Bank of Rio Vista to expand its operations in central California.

Latest weapon in battle for deposits: A digital-only bank

Tue, 03/27/2018 - 22:22
The field is crowded, but that’s not stopping well-established banks from trying to reach new markets by creating separately branded digital units.

Who should go at Deutsche Bank: The chairman or CEO?

Tue, 03/27/2018 - 20:56
Deutsche Bank Chairman Paul Achleitner is said to have held talks with possible replacements for CEO John Cryan. The bank's turnaround efforts have been disappointing in many eyes, but there is open debate on whether it's Cryan or Achleitner who deserves most of the blame.

Can blockchain ease banks’ digital-identity concerns?

Tue, 03/27/2018 - 20:39
A startup called Spring Labs has launched a blockchain network with the goal of getting lenders and data providers to share data to help verify customers' identity.

Millennials want it, banks have it: Money management advice

Tue, 03/27/2018 - 20:02
Offering simple financial guidance is a great way for community banks to connect with younger consumers.

Back offices key to customer-focused banking, survey finds

Tue, 03/27/2018 - 18:05
Operations executives said in a recent survey that they have to modernize their back offices before they can meet their No. 1 goal: improving the customer experience.

‘There really is a consequence of bad behavior’: N.Y. Fed’s Dudley

Tue, 03/27/2018 - 17:33
William Dudley, who will retire soon as New York Fed president, on banks' corporate culture, economic risks and what advice he would give his successor.

10 questions for departing N.Y. Fed chief William Dudley

Tue, 03/27/2018 - 17:17
In an interview with American Banker, the outgoing president of the Federal Reserve Bank of New York discussed changes in supervision, bank culture and his advice to his successor.

BofA pays U.K. female staff 28.7% less than male employees

Tue, 03/27/2018 - 16:03
Bank of America pays female staff in Britain 28.7% less on average than male employees, according to a report released Tuesday.

Citi pays male staffers in U.K. 44% more than females

Tue, 03/27/2018 - 16:03
Morgan Stanley also reported a wide disparity in gender pay, reflecting the greater proportion of men in top executive posts.

Collecting debts doesn’t have to mean alienating customers

Tue, 03/27/2018 - 15:54
There are ways to provide a better consumer experience, even when institutions are looking to settle up on unpaid accounts.

Bank bonuses soar; White House probing Kushner loans

Tue, 03/27/2018 - 14:13
Payouts on Wall Street averaged $184,000, following only 2006’s record high; ethics office eying $500 million of real estate loans made to Trump son-in-law.

Low Income Housing Tax Credit gets boost from spending bill

Tue, 03/27/2018 - 00:12
Lawmakers approved a measure to increase the program's funding by nearly $3 billion over four years.

MUFG's big U.S. expansion is just getting started

Mon, 03/26/2018 - 22:09
The holding company for Union Bank — itself a unit of the Japanese giant Mitsubishi UFJ Financial Group — is on a mission to double its size and become one of the nation's 10 largest banks. Under Steve Cummings, its first-ever American CEO, MUFG Americas has expanded middle-market lending and amassed $3 billion of consumer deposits through its new online bank. Is a splashy acquisition next?

BofA the latest big bank to woo small business customers

Mon, 03/26/2018 - 21:15
The Charlotte company on Monday launched a loyalty and rewards program aimed at attracting small business customers.

Bank Holding Companies with the Largest Small-Business Loan Balances

Mon, 03/26/2018 - 20:14
On Dec. 31, 2017. Dollars in thousands, except for average loan amount.

Banks and Thrifts with the Most Deposits

Mon, 03/26/2018 - 20:06
On Dec. 31, 2017. Dollars in thousands.

Banks and Thrifts with the Most Assets

Mon, 03/26/2018 - 20:02
On Dec. 31, 2017. Dollars in thousands.

Is Dodd-Frank’s <em>other</em> asset threshold destined for the scrap heap?

Mon, 03/26/2018 - 19:52
The biggest legacy of the current regulatory relief effort may be the increasing focus on whether organizing banks in supervisory buckets by asset size makes sense. Yet the bill deals with just one of the two big asset thresholds in the law.

BBVA-backed fintech launches global bank account

Mon, 03/26/2018 - 19:28
Denizen is designed for expats and migrants to receive money and make payments without international transfer fees or currency exchanges.

Prosper's earnings suffer from cost of deal that bolstered funding

Mon, 03/26/2018 - 19:12
The San Francisco-based online lender reported a net loss of $115 million for 2017, more than half of which was connected to warrants issued in a deal that stabilized the struggling firm.

Cash or gift card? (Never mind — our AI already knows)

Mon, 03/26/2018 - 19:03
HSBC is letting artificial intelligence software predict the types of reward offers card customers prefer. It's driving up response rates in marketing tests, but the process raises privacy and other issues.

Eliminate incentives that encourage bad behavior: N.Y. Fed's Dudley

Mon, 03/26/2018 - 18:32
The departing New York Fed president said Monday that the banking industry should improve its culture, better aligning pay with long-term stability and removing bad actors.

Small banks pool their subordinated debt to reassure investors

Mon, 03/26/2018 - 17:03
An affiliate of the private-equity firm Angel Oak is packaging bank-issued sub debt to minimize risk for bondholders. It recently completed its first securitization and has plans to issue two deals a year.

Indiana mutual to raise $22M from second-step conversion

Mon, 03/26/2018 - 16:49
Mid-Southern Bancorp could use proceeds to make more loans or to pursue acquisitions.

Here's how blockchain could help the mortgage industry

Mon, 03/26/2018 - 16:29
Governments are studying ways blockchain can safeguard property records and simplify how they get tracked.

Fed faces pro-diversity uproar on report of Williams's N.Y. nod

Mon, 03/26/2018 - 16:13
The Federal Reserve is facing a backlash over its lack of diversity in key positions after it emerged this weekend that John Williams, the current president of the San Francisco regional branch, is a front-runner to succeed William Dudley as head of the powerful New York Fed.

Malware mastermind who rigged ATMs to spew cash caught

Mon, 03/26/2018 - 15:00
The mastermind behind malware attacks that programmed ATMs to spit out cash on demand and caused more than 1 billion euros ($1.2 billion) of losses, has been arrested in Spain.

John Williams on N.Y. Fed radar; Wells revamps risk management

Mon, 03/26/2018 - 14:20
San Francisco Fed chief is reportedly leading candidate to replace Dudley in New York; four senior officers to retire as OCC readies penalties against the bank.

What’s driving the push for more public banks?

Mon, 03/26/2018 - 03:03
Only North Dakota has its own state-owned bank, but policymakers in other states say more public banks are necessary to fully meet society's needs. Among those who proponents say would benefit the most: small-business owners and legal marijuana suppliers and distributors.

DOJ pot crackdown has yet to hit banks

Fri, 03/23/2018 - 22:13
Attorney General Jeff Sessions made headlines in January when he tightened federal marijuana enforcement. But the good news for financial institutions looking to service the pot industry is that the rest of the government has responded with a shrug.

Wells Fargo risk-management leaders are said to leave in revamp

Fri, 03/23/2018 - 22:04
Wells Fargo announced changes to its risk-management leadership this week as some executives plan to retire, according to a person familiar with the situation.

Battered banks suffer their worst week in more than two years

Fri, 03/23/2018 - 21:59
Bank stocks just took a huge beating. The KBW Bank Index plunged 8 percent this week, its worst showing since January 2016.

Small N.C. bank dealt legal blow in effort to block hostile takeover

Fri, 03/23/2018 - 20:49
A judge in North Carolina granted a request by First Citizens to block KS Bancorp from enacting a shareholder rights plan.

SunTrust's CIO, CRE bridge lending and Amazon's long shadow: Top stories of the week

Fri, 03/23/2018 - 20:08
SunTrust's new IT chief preaches collaboration; will CRE securitizations return to haunt?; Amazon here, there and everywhere; and more.

SunTrust's CTO, CRE bridge lending and Amazon's long shadow: Top stories of the week

Fri, 03/23/2018 - 20:07
SunTrust's new IT chief preaches collaboration; will CRE securitizations return to haunt?; Amazon here, there and everywhere; and more.

Graham unveils Senate measure to repeal CFPB payday rule

Fri, 03/23/2018 - 19:59
The congressional resolution to overturn the payday regulation comes as acting CFPB Director Mick Mulvaney has already said the agency will reconsider the rule internally.

Reluctant convert: This Massachusetts mutual may be out of options

Fri, 03/23/2018 - 19:40
A recent acquisition that was highly dilutive, and a lack of suitable mutual targets, could spur HarborOne Bancorp to pursue a second-step conversion.

The reasons U.S. blockchain adoption has stalled

Fri, 03/23/2018 - 19:13
JPMorgan Chase is said to be dropping its Quorum blockchain technology, and little is happening with other blockchain projects that have been in the works for years. What gives?

Amazon's good luck, blockchain dangers and French dissing

Fri, 03/23/2018 - 17:35
Luckily for Amazon, the OCC isn’t “the angry dad on the porch with a shotgun” anymore, trying to keep tech companies from hooking up with banks. JPMorgan Chase’s Amber Baldet can pack a room for a lesson on blockchains. And it is the end of catcalls in France.

Regionals may lose ‘systemic’ label, but they’re not out of the woods

Fri, 03/23/2018 - 17:25
The regulatory relief bill frees some regional banks from the tough supervision reserved for larger companies, but regulators still can subject them to onerous requirements.

Bank of the West, BNP Paribas scout for fintech partners

Fri, 03/23/2018 - 16:50
The banks' Finlabs program is seeking growth-stage firms that could eventually work with several of their business lines.

Level One in Michigan plans IPO

Fri, 03/23/2018 - 15:17
The company said it could raise up to $25 million through the initial public offering.

This isn't a bailout, this is return of stolen funds

Fri, 03/23/2018 - 14:32
News that the GSEs need an infusion from Treasury to cover quarterly losses underscores problems with the government’s 2012 decision to “sweep” the housing giants’ profits.

Citi take lead on gun issue; Big three banks’ deposits grow

Fri, 03/23/2018 - 13:44
The bank said it won’t do business with clients who sell guns to minors or those who fail background checks; JPM, B of A and Wells now hold nearly one-third of U.S. deposits.

'Predatory lending is here to stay': Comments of the week

Fri, 03/23/2018 - 03:01
Readers react to the Senate regulatory relief bill, weigh in on the Consumer Financial Protection Bureau’s innovation initiative, chime in on whether banks need to provide more value in a digital age and more.

Senate Dems criticize Carson over HUD enforcement practices

Thu, 03/22/2018 - 22:52
Senate Democrats accused Housing and Urban Development Secretary Ben Carson and his agency of failing to enforce fair housing laws.

Are bankers underestimating Amazon?

Thu, 03/22/2018 - 22:20
More than a decade ago, bankers fought Walmart tooth and nail as it made forays into banking. But with Amazon making more moves into financial services, the reaction is very different.

Arizona creates nation's first testing ground for fintech

Thu, 03/22/2018 - 22:10
The new law, which is modeled on a similar effort in the United Kingdom, aims to lure financial firms to the desert. It has drawn support from business organizations but opposition from consumer groups — a dynamic that is likely to be replayed in other states.

Banks win break on capital requirement

Thu, 03/22/2018 - 21:19
Banks that spent years lobbying against billions of dollars of new capital requirements are being rewarded for their efforts.

Will rivals follow Citi in clamping down on gun sellers?

Thu, 03/22/2018 - 20:02
CEO Michael Corbat all but called out his counterparts at other banks to join Citigroup in setting limits on what kinds of firearms businesses it is willing to serve. The response was muted, but the pressure to act is tremendous.

Community bank launches digital account targeting the unbanked

Thu, 03/22/2018 - 19:47
AxiomGo is being offered to customers seeking alternatives to prepaid cards and traditional checking accounts.

CFPB to review rulemaking authority inherited from other agencies

Thu, 03/22/2018 - 19:32
The information collection effort is consistent with acting CFPB Director Mick Mulvaney's efforts to set the agency on a more pro-industry, anti-enforcement course.

Equipment finance surge shows no signs of letup

Thu, 03/22/2018 - 19:29
As tax reform spurs demand, a rising rate environment is making the short-term loans more appealing to banks.

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