Jacob Frenkel, chairman of JPMorgan Chase International, says a trade war would be "disastrous" and "an experiment that is too expensive." Frenkel considers the Smoot-Hawley Tariff in the 1930s "among the most catastrophic acts in congressional history" and warns against repeating the error.
A move to a uniform assistance policy for homeowners hit by natural disasters, coupled with changes in lending standards after the financial crisis, helped keep foreclosure figures for hurricane-affected areas in Texas and Florida below pre-storm levels. Meg Burns, a former official in the Department of Housing and Urban Development who now works on housing policy issues at FSR, said the effects of Superstorm Sandy "informed our thinking to get all of the government entities around the table to make some consistent policy."
The longest time a firm should expect to wait between inspections by a chief compliance officer is one year for supervisory branch offices and three years for nonsupervisory locations, determined by the Financial Industry Regulatory Authority. Compliance officers are expected to critically examine various factors to determine impacts on risk exposure, writes Alan Foxman of NCS Regulatory Compliance.
Technological advances mean many routine accounting and finance tasks are likely to be automated soon. Executives from GE and NBCUniversal recently discussed how preparing finance teams for a cultural shift is a critical step in successful implementation.
Farmers Capital Bank in Kentucky has agreed to be acquired by WesBanco in West Virginia. The $378.2 million deal is expected to close this year, pending approval from regulators and Farmers Capital shareholders.
SunTrust Banks has revealed a former employee tried to print the information of about 1.5 million customers. The employee might have shared the data with a third party, says the bank, which plans to offer customers free identity theft protection.
Banks should run tests to ensure backup systems work properly in case of glitches that disable services such as ATMs and online banking, says Tyler Leet, director of risk and compliance services at CSI. Several banks, including BB&T and Capital One Financial, have faced technical glitches in the past year.
Questions remain after Wells Fargo has been fined $1 billion by the Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau for charging borrowers for automobile insurance they didn't need and for improperly charging fees to mortgage borrowers. The bank's future leadership is unclear, as is what the bank must pay besides the penalty.
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