The Federal Reserve should look again at a capital surcharge for the eight biggest US banks, given that it is to be combined with stress test results to calculate capital requirements, trade groups say. "The surcharge unnecessarily raises costs that impede the ability of our member institutions to provide credit to support growth of the real economy," the Financial Services Forum says.
A Consumer Reports test of mobile payment app security yielded less-than-impressive results, with Apple Pay the high-score standout, at 76 out of 100. Generally the scores were only fair, with Venmo at 69, Square's Cash App at 64 and Facebook P2P Payments in Messenger at 63.
The Office of the Comptroller of the Currency is accepting applications for bank charters from financial-technology firms, but no company has applied. Executives are cautious and are expecting a legal challenge to the OCC's decision.
Mark D'Arcy has resigned as Wells Fargo's chief operational risk officer to pursue opportunities outside the bank. Mark Weintraub is taking over the job.
Popular but dubious recommendations for leaders include focusing only on your strengths, being authentic at all times and worrying about how you pose, argues Marc Effron of The Talent Strategy Group. "Be a critical consumer and realize that management advice that sounds too easy to be true, very likely is," he writes.
A report from the Federal Reserve Bank of Minneapolis shows that between 1971 and today, lower-income Americans have grown poorer, while those in the top 10% of wealth distribution are nearly three times as wealthy. Economists attribute this in part to the fact that the housing market has not fully recovered from its prerecession peak, while the stock market is about 50% higher than before the recession.
Student-loan servicer Heartland Campus Solutions ECSI has to respond to a subpoena from the Consumer Financial Protection Bureau, a federal appeals court ruled. Heartland had argued the bureau's request did not comply with federal law.
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