AMERICAN BANKER

Credit union trades fire back against bank effort to repeal tax exemption

Wed, 02/21/2018 - 17:48
The National Association of Federally-Insured Credit Unions and the Credit Union National Association sent a joint letter to Sen. Orrin Hatch, R-Utah, on Wednesday defending the credit union charter and its tax status.

Flagstar to expand in warehouse lending by buying Santander portfolio

Wed, 02/21/2018 - 17:42
The Michigan company has been acquisitive lately, with a focus on branches and mortgage-related businesses.

Hostile takeover attempt in N.C. escalates to litigation

Wed, 02/21/2018 - 16:59
First Citizens, which wants to buy KS Bancorp, has filed a lawsuit to challenge a so-called poison pill provision that the much smaller bank's board recently passed.

Treasury proposes reforms to FDIC’s crisis-era resolution powers

Wed, 02/21/2018 - 16:48
The Trump administration on Wednesday refrained from proposing the elimination of authority to clean up failed financial behemoths, but the Treasury Department still wants substantial reforms to the resolution powers.

CFPB has opportunity to reinvent approach to innovation

Wed, 02/21/2018 - 15:32
The bureau’s policy of “no-action letters,” which offer some regulatory cover to participants, has failed to attract much interest from financial startups, suggesting change is needed.

JPMorgan plans new Manhattan headquarters for 15,000 workers

Wed, 02/21/2018 - 14:53
The nation's largest bank plans to consolidate employees from multiple office buildings into the 2.5 million-square-foot building. Construction is expected to be completed in 2024.

Fannie-Freddie case rejected; bitcoin regulator dies

Wed, 02/21/2018 - 14:14
The U.S. Supreme Court refuses to hear an appeal by hedge funds; South Korea’s leading cybercurrency regulator dies of heart attack.

State bank trades cheer Hatch review of credit union tax status

Wed, 02/21/2018 - 02:01
Fifty-two state bank trade associations sent a letter to Sen. Orrin Hatch, R-Utah, encouraging him to continue his review of the credit union tax exemption.

Santander Consumer pays $3M to resolve another regulatory matter

Wed, 02/21/2018 - 01:31
The subprime auto lender paid $2.9 million to Connecticut consumers and a $100,000 fine for miscalculating balances owed on repossessed cars and for charging improper fees. It says the settlement is part of an effort to clean up "legacy issues."

LendingClub agrees to settle shareholder litigation for $125M

Tue, 02/20/2018 - 23:43
The online lender continues to contend with the fallout of a 2016 scandal that led to the ouster of its founder and CEO.

Did banks’ KYC controls fail in Russian efforts to swing election?

Tue, 02/20/2018 - 23:36
Foreign operatives' alleged use of fraudulent financial accounts to try to influence the U.S. political system shows again how difficult it is for banks to truly know their customers.

As 10 year Treasury yields spike, local mortgage rates will matter more

Tue, 02/20/2018 - 23:34
As inflation fears put upward pressure on 10-year Treasury bonds and mortgage rates nationally, borrowers could start to take more notice of what lenders are charging them locally.

Call for bank crackdown on gun sales is deeply misguided

Tue, 02/20/2018 - 23:20
The New York Times' Andrew Ross Sorkin wants banks and credit card companies to effectively ban assault gun sales if Congress won't. It's a dangerous idea. Here's why.

Despite careful planning, TD Bank fumbles online banking upgrade

Tue, 02/20/2018 - 22:55
Scores of customers have been unable to use digital channels to access accounts for more than a week, and many have taken to social media to voice their displeasure with TD’s response to the outage. The lesson for other banks: Test new platforms, and test them again, before making them live.

Choice Financial in N.D. to enter Minneapolis with Venture Bank deal

Tue, 02/20/2018 - 21:21
Choice, which has a history of acquisitions, is buying a financial institution that largely focuses on business banking.

Another community bank agrees to sell to a credit union

Tue, 02/20/2018 - 21:16
Superior Choice Credit Union in Superior, Wis., will purchase Dairyland State Bank. It is the second deal announced this year where a credit union plans to buy a bank.

Beyond ADA: An effort to help the disabled access mainstream banking

Tue, 02/20/2018 - 20:47
A public-private coalition, including Citigroup and disability advocates, is testing financial literacy strategies in New York City that they hope will be used nationwide to improve the financial lives of Americans with disabilities.

The perks and pitfalls of speaking out on social media

Tue, 02/20/2018 - 19:14
Bob Rivers, CEO of Eastern Bank, recently received praise and criticism for calling out a Boston sports radio station for insensitive remarks made by its on-air personalities. The incident underscores why bankers must be mindful about the positions they take.

Supreme Court rejects hedge funds on Fannie, Freddie suits

Tue, 02/20/2018 - 18:39
The Supreme Court dealt hedge funds and other big investors a blow Tuesday by refusing to revive core parts of lawsuits that challenged the federal government’s capture of billions of dollars in profits generated by Fannie Mae and Freddie Mac.

Bridgewater Bancshares in Minn. sets stage for IPO

Tue, 02/20/2018 - 18:25
The company could use proceeds from the planned offering to add branches and make bigger loans.

Gulliver era at HSBC ends with earnings miss

Tue, 02/20/2018 - 17:25
Stuart Gulliver’s final set of results at HSBC Holdings Plc weren’t quite the swansong he’d hoped for as he hands the reins over to his long-term lieutenant, John Flint.

A solution to California’s pot-banking problem: Its own central bank

Tue, 02/20/2018 - 15:33
The effort would help the state support its burgeoning cannabis industry without interference from federal financial regulators.

Big five CEOs clean up; More cuts at Deutsche Bank

Tue, 02/20/2018 - 14:13
Average pay among big bank chiefs last year rose 17% to $25.3 million; bank may let go up to 500 bankers and traders in latest restructuring.

Bank IT just keeps getting harder

Tue, 02/20/2018 - 04:02
Bank information technology departments are tasked with making sure their institutions modernize and remain competitive. But their mission brings a host of technical and cost challenges that often stand in the way of innovation.

JPMorgan whistle-blowing case said to spur $30M award

Fri, 02/16/2018 - 23:16
The CFTC will pay the award for tips received from one person in the case, in which the bank didn’t properly disclose that it was steering asset management customers into investments that would be profitable for the bank.

Can this data security bill succeed where others failed?

Fri, 02/16/2018 - 23:11
A bipartisan bill to establish a federal security framework follows a string of efforts beset by congressional turf battles.

This old-school method for foiling card fraud has stood test of time

Fri, 02/16/2018 - 23:07
The card activation process is relatively low-tech, but since its introduction nearly three decades ago it has been hugely effective in preventing credit cards from falling into the wrong hands. Among its pioneers was Ash Gupta, American Express’s president of global credit risk, who is retiring next month.

U.S. Bank's big AML fine, Mulvaney in hot seat, future of payments: Top stories of the week

Fri, 02/16/2018 - 22:17
U.S. Bank's $600 million fine for AML lapses quickly drew readers attention, while acting CFPB Director Mick Mulvaney got the Cordray treatment on Capitol Hill and big banks made moves to speed real-time payments.

Dems want fair-lending docs from CFPB's Mulvaney

Fri, 02/16/2018 - 21:57
Democratic lawmakers are objecting to acting CFPB Director Mick Mulvaney's decision to strip the fair-lending office of enforcement powers.

First Capital in N.C. shuffles board and management after capital infusion

Fri, 02/16/2018 - 21:14
The company, which added banking veterans Harvey Glick and John McCoy to its board, will move its corporate headquarters to Charleston, S.C.

Mueller indictment says Russians used PayPal to buy Facebook ads

Fri, 02/16/2018 - 20:45
A sophisticated campaign by Russian actors seeking to manipulate the 2016 U.S. presidential election through social media included stealing the identities of Americans and using accounts at PayPal to aid their effort.

Cyber attacks took $56B from U.S. economy in ’16: Report

Fri, 02/16/2018 - 20:43
The finance sector had the highest number of breaches of all industries, with 471 in 2016, according to a report issued Friday by the White House's Council of Economic Advisors.

Hensarling blasts FHFA for allowing GSE affordable housing payments

Fri, 02/16/2018 - 20:28
The House Financial Services Committee chairman is calling out Fannie Mae and Freddie Mac's regulator for authorizing payments to two housing trust funds while the mortgage giants have their own financial struggles.

Silicon Valley Bank recruits new class for fintech accelerator

Fri, 02/16/2018 - 20:26
Four of the startups are focused on business and consumer bill payments, and a fifth offers student loan repayment assistance as an employee perk.

In-house tech tool steers bank's lucrative factoring business

Fri, 02/16/2018 - 20:20
Triumph Bancorp has developed technology to help freight brokers make faster payments to truckers, charging a fee for the service.

In-house tech tool is secret to this bank's big factoring gains

Fri, 02/16/2018 - 20:06
Triumph Bancorp has developed technology to help freight brokers make faster payments to truckers, charging a fee for the service.

U.K. regulator's big idea: Take innovation sandbox global

Fri, 02/16/2018 - 19:28
The Financial Conduct Authority is seeking input on whether it should expand its fintech testing ground to include startups and regulators from around the world.

Banks' underground data vault is evolving — will it use blockchain next?

Fri, 02/16/2018 - 18:29
Banks scrapped a plan to create a shared data bunker for customer data in favor of a backup buddy system. Some argue it should move to blockchain next.

Fintech-friendly Cross River Bank partners with PeerIQ on loan data

Fri, 02/16/2018 - 18:03
Their partnership aims to make it easier for community banks and other institutional investors to vet loans that they could buy from online lenders.

Here's how new Fed chief Powell is changing things up

Fri, 02/16/2018 - 17:56
Jerome Powell is the first Federal Reserve chairman in more than a decade to have any background in the private sector. That could explain changes he's implemented in his first weeks on the job.

Citigroup lifts Corbat's pay 48% to $23 Million for '17

Fri, 02/16/2018 - 16:54
Citigroup Chief Executive Officer Michael Corbat received $23 million in compensation for 2017, a 48 percent increase from a year earlier and the biggest pay package he's received since taking the top job.

Don’t reinvent the wheel on housing finance: Restore Fannie and Freddie

Fri, 02/16/2018 - 15:34
As the debate over housing reform heats up, policymakers should give careful consideration to a plan that recapitalizes the government-sponsored enterprises.

U.S. Bancorp hit with AML fine; bitcoin rallies

Fri, 02/16/2018 - 14:07
Bank’s alleged lax controls enabled a former customer to launder money in a payday lending scheme; digital currency has made back a chunk of its recent decline.

Three M&A deals in seven months for Associated

Fri, 02/16/2018 - 01:29
Associated Banc-Corp has agreed to buy an insurance broker in Milwaukee after unveiling agreements to buy a community bank last summer and a Chicagoland wealth management firm in the fall.

U.S. Bancorp, a big bank untouched by scandal — until now

Thu, 02/15/2018 - 23:49
The bank’s unsullied image took a hit when it admitted to misleading regulators regarding its efforts to combat money laundering.

Urban Partnership seeks buyer: Report

Thu, 02/15/2018 - 23:00
The Chicago institution, formed in 2010 to buy the failed ShoreBank, has hired Sandler O'Neill to gauge interest from potential buyers, according to a published report.

Big banks mostly mum about sexual harassment policies

Thu, 02/15/2018 - 22:07
Very few of the 20 largest banks in the country would answer just a few basic questions about their policies and programs around sexual harassment. But — trust them! — they are committed to equality. Even Maria Contreras-Sweet is kept out of critical meetings, though perhaps this wasn’t a “no girls allowed” situation, like at Point72 Asset Management.

B of A’s Moynihan: Big banks are 'fine' with Dodd-Frank

Thu, 02/15/2018 - 22:00
While small and regional banks are pushing for a rollback of the Dodd-Frank Act, big banks are largely supportive of the 2010 financial reform law, Bank of America CEO Brian Moynihan said Thursday.

‘Don't do it Donald’: Comments of the week

Thu, 02/15/2018 - 21:55
Readers weigh in on the possibility of Mick Mulvaney becoming the White House chief of staff, debate whether the industry needs more or less consolidation, chime in on Wells Fargo’s updated mobile app and more.

Banks pour more money into mortgage fintech Roostify

Thu, 02/15/2018 - 21:27
Banco Santander joined existing investors JPMorgan and USAA as well as others in raising $25 million in secondary-round financing for Roostify, which seeks to build a paperless mortgage process.

Why 'build to rent’ is having its moment

Thu, 02/15/2018 - 21:08
With few foreclosed homes left to pick up on the cheap, the biggest landlords are buying, or building, new single-family homes to pad their portfolios; mortgages on these properties could show up as collateral in rental bonds.

Grin and bear it: The wisdom of getting along with bank analysts

Thu, 02/15/2018 - 20:53
Having solid relationships with those who cover the banking industry can lend credibility to management teams, especially when times are tough.

Freddie needs $312 million from Treasury after writing down tax assets

Thu, 02/15/2018 - 20:30
Freddie Mac posted a net loss of $3.3 billion during the fourth quarter and will request $312 million from the Treasury after recent tax reform legislation forced it to write down the value of tax deferred assets.

GSE reform isn't dead, but it isn't going anywhere either

Thu, 02/15/2018 - 20:15
Despite a legislative push by some senators and other stakeholders to jump-start housing finance reform, efforts to form consensus over a bill once again are stuck in neutral.

Fintechs see their profile rise, with banks playing a large part

Thu, 02/15/2018 - 18:34
U.S. fintechs attracted $5.8 billion in the fourth quarter as institutions sought an AI edge.

This is the real key to risk management now

Thu, 02/15/2018 - 18:32
Amid all the complaining about increased regulation, and the need to maintain higher capital levels, bankers are failing to realize that there is also a significant opportunity: Those that develop operational excellence at deploying capital can set themselves apart from peers.

BMO Harris names Canadian exec to lead U.S. personal, business banking

Thu, 02/15/2018 - 18:22
Erminia Johannson's promotion is part of an effort by BMO Financial to generate more revenue from its U.S. operations.

How to make small-dollar loans profitable for banks, safe for consumers

Thu, 02/15/2018 - 17:02
The Pew Charitable Trusts has released a set of 10 standards for banks and credit unions that want to to offer small loans to subprime customers. Among its ideas: keep monthly payments at or below 5% of the borrower’s paycheck and make loans available quickly through digital channels.

Big banks got huge tax cuts, then hiked cities' interest rates

Thu, 02/15/2018 - 16:46
As U.S. banks were tallying up the billions of dollars in extra profits they'll reap from the sweeping tax cuts signed into law by President Donald Trump, they were quietly delivering unwelcome news to local governments: The interest rates on their loans were about to go up.

Regulators fine U.S. Bank more than $600M for AML errors

Thu, 02/15/2018 - 16:46
U.S. Bancorp. has agreed to pay $613 million in penalties to state and federal authorities for violations of the Bank Secrecy Act and a faulty anti-money laundering program.

Transforming Banking Accelerate Innovation through Integrated IT Portfolio Management

Thu, 02/15/2018 - 16:37
The rules of banking have changed – and so have your customers’ expectations.

Digital banking needs to be front and center in CRA reform

Thu, 02/15/2018 - 15:32
As regulators look to update the Community Reinvestment Act, they should better integrate online and mobile banking activity as part of exam performance.

The business case for eliminating gender pay gaps at banks

Thu, 02/15/2018 - 15:04
Natasha Lamb, the activist investor who got four large banks to publish adjusted gender pay gaps, explains why companies with gender diversity perform better.

Cordray blasts Trump’s CFPB; Warren wants Wells answers

Thu, 02/15/2018 - 14:13
Former director says his old agency is now “favoring predators”; Senator is looking into how the bank’s program to repay improperly charged loan customers.

Group aims to form first N.C. de novo since 2009

Thu, 02/15/2018 - 01:18
The as-yet-unnamed bank, which would be based near Charlotte, N.C., would be led by Randy Helton, a former CEO at American Community Bancshares.

Wells Fargo to sell auto finance unit in Puerto Rico to Popular

Thu, 02/15/2018 - 00:38
Popular will acquire $1.5 billion in auto loans amid questions about the potential for loan losses following Hurricane Maria. The deal also coincides with Wells Fargo's need to stay inside a growth cap imposed by regulators.

Bill to unwind Madden ruling clears House, but Senate is question mark

Wed, 02/14/2018 - 23:24
The legislation, introduced by Rep. Patrick McHenry, R-N.C., would essentially reverse a court ruling that marketplace lenders say has blocked them from helping more consumers access credit.

CFPB adds eight more topics to broad review of activities

Wed, 02/14/2018 - 23:19
The CFPB sought input Wednesday about the effectiveness of its supervisory activities and added more topics, including consumer complaint reporting, to a review of all aspects of the agency's operations.

How 'build to rent’ movement could boost the mortgage markets

Wed, 02/14/2018 - 23:08
With few foreclosed homes left to pick up on the cheap, the biggest landlords are buying, or building, new single-family homes to pad their portfolios; these properties could eventually show up as collateral in rental bonds.

Mulvaney looks to neuter CFPB’s most potent weapon

Wed, 02/14/2018 - 22:11
Acting Consumer Financial Protection Bureau Director Mick Mulvaney is discarding many of the policies of his predecessor but none as important perhaps as the agency's targeting of "unfair, deceptive or abusive acts or practices."

Fannie's $3.7B drawdown not as bad as it looks, CEO says

Wed, 02/14/2018 - 21:46
Tax reform caused Fannie Mae to burn through retained earnings that had been approved just two months ago and to post a fourth-quarter loss. CEO Timothy Mayopoulos argued it was a one-time event that overshadowed strong fundamentals.

Warren to Wells Fargo: Hurry up and make customers whole again

Wed, 02/14/2018 - 20:14
Sen. Elizabeth Warren, D-Mass., asked Wells Fargo's chief executive to address recent reports that the bank's efforts to compensate customers for unnecessary fees is falling short.

Citi, PNC invest in B2B payments fintech

Wed, 02/14/2018 - 19:39
The investment continues a trend of banks focusing on commercial payments technology.

Signs of life in commercial lending

Wed, 02/14/2018 - 18:45
It’s too soon to gauge the true impact of recent tax cuts on loan demand, but anecdotes from bankers suggest that, after months of stagnation, pipelines are filling up again.

Banc of California hits reset after rocky 2017

Wed, 02/14/2018 - 18:32
The company, which recently shareda three-year plan to bring in more lower-cost deposits and commercial loans, seems ready to play offense a year after the abrupt ouster of its CEO.

Small nonbanks call for clearer exemption from CFPB audits

Wed, 02/14/2018 - 18:03
Nonbank mortgage firms are seeking formal assurance from the Consumer Financial Protection Bureau that they will not become subject to surprise audits or enforcement without involvement of a state regulator.

Three things an AI chatbot taught an Israeli bank

Wed, 02/14/2018 - 18:03
Discount Bank in Tel Aviv has made several discoveries, including that customers ask more in-depth questions of its bank chatbot than expected.

Pioneering Fla. credit union to buy another community bank

Wed, 02/14/2018 - 17:33
Achieva Credit Union, which recently formed a business to advise other acquisition-minded credit unions, has agreed to buy Preferred Community Bank.

In management shuffle, SunTrust names new CFO, co-COOs

Wed, 02/14/2018 - 17:22
Allison Dukes will succeed current CFO Aleem Gillani when he retires at the end of this quarter, while Mark Chancy and Beau Cummins will become co-chief operating officers immediately.

Ex-BofA employee's court victory puts all banks on notice

Wed, 02/14/2018 - 17:11
A small legal case in California brings a warning to banks: be careful who you report for fraud.

Fannie needs first bailout funds since 2012 after tax-cut loss

Wed, 02/14/2018 - 16:13
Fannie Mae will request an infusion of taxpayer money for the first time since 2012 because of an unintended but anticipated side effect of the corporate tax cut signed into law in December.

Banks need more skin in the housing finance game

Wed, 02/14/2018 - 15:31
Lenders should be encouraged to hold more credit risk in the mortgage market, rather than having it foisted on Fannie and Freddie.

Wells CEO reassures investors; What’s Ant really worth?

Wed, 02/14/2018 - 14:14
Timothy Sloan says Federal Reserve sanctions won’t affect the bank’s stress test submission; not everyone believes the mobile-payment system is worth $100 billion.:

10 cities on the verge of a housing bubble

Wed, 02/14/2018 - 14:14
Here's a look at the 10 housing markets with the biggest gap between growth in home prices and wages that could indicate a housing bubble is forming.

Hilltop adds scale in Houston with latest bank acquisition

Wed, 02/14/2018 - 00:40
The company agreed to buy Bank of River Oaks for $85 million in cash.

Nafta, tariffs, Ex-Im vacancies: Turbulent times for trade finance

Tue, 02/13/2018 - 23:20
Turmoil at the Export-Import Bank, a possible trade war with China and a potential retreat from the North American Free Trade Agreement all add up to high anxiety for bankers in the business of financing U.S. exports.

10 cities on the verge of a housing bubble

Tue, 02/13/2018 - 23:20
Here's a look at the 10 housing markets with the biggest gap between growth in home prices and wages that could indicate a housing bubble is forming.

Digital investment advice spreading to regionals

Tue, 02/13/2018 - 23:05
Webster Bank’s partnership with national broker-dealer LPL is a reversal of its initial opposition to robo-advisers. It is the latest regional bank to enter a market first claimed by the biggest banks.

Banks and Thrifts with the Most Assets

Tue, 02/13/2018 - 22:22
On Jun. 30, 2017. Dollars in thousands.

Banks and Thrifts with the Most Deposits

Tue, 02/13/2018 - 22:20
On Jun. 30, 2017. Dollars in thousands.

Banks and Thrifts with the Most Deposits

Tue, 02/13/2018 - 22:15
On Sep. 30, 2017. Dollars in thousands.

Banks and Thrifts with the Most Assets

Tue, 02/13/2018 - 22:14
On Sep. 30, 2017. Dollars in thousands.

MainSource selling branches to German American to secure DOJ deal approval

Tue, 02/13/2018 - 20:48
The Justice Department required the sales before signing off on MainSource's pending sale to First Financial in Cincinnati.

MutualFirst selling branches to German American to secure DOJ deal approval

Tue, 02/13/2018 - 20:44
The Justice Department required the sales before signing off on MutualFirst's pending sale to First Financial in Cincinnati.

Payback: Dems give CFPB's Mulvaney the Cordray treatment

Tue, 02/13/2018 - 20:42
The acting director of the Consumer Financial Protection Bureau on Tuesday had his first taste of the tough congressional criticism endured by his predecessor on trips to Capitol Hill.

Grand plan, local connections led this bank to a pivotal acquisition

Tue, 02/13/2018 - 19:56
People's Bank of Commerce in southern Oregon decided it had to diversify to survive, so when a director heard a factoring firm he co-founded was up for sale, the bank seized the moment. Now it has other deals in mind.

‘Am I about to overdraft?’ Wells app predicts consumer behavior

Tue, 02/13/2018 - 19:27
The bank joins a small group of companies that believe short-term forecasts will ultimately help customers build healthier financial lives.

Mortgage balances surge, but gains are uneven

Tue, 02/13/2018 - 19:14
In some states, total mortgages outstanding are at all-time highs, but in others hard hit by the financial crisis they remain well below their 2008 peaks, the New York Fed said Tuesday in its quarterly report on household debt.

Wells CEO downplays impact of tough Fed order

Tue, 02/13/2018 - 18:30
Wells Fargo CEO Tim Sloan predicted minimal financial impact of the bank's enforcement order with the Federal Reserve, saying he expects to retain top talent in the commercial bank while the asset cap is in place.

Breaking Banks: One robo-advisor’s approach to simplifying wealth management

Tue, 02/13/2018 - 17:52
Brandon Krieg, co-founder and CEO of StashInvest, shares what his company is doing to create a comfortable, "frictionless" point of entry for investing.

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