Banks that partner with financial-technology companies for consumer information can influence standards on protection and privacy, says Federal Reserve Governor Lael Brainard. "Banks have a stake in ensuring that their vendors and third-party service providers act appropriately, that consumers are protected and treated fairly and that the banks' reputations aren't exposed to unnecessary risk," she said.
PayPal has agreed to sell $5.8 billion in loans to Synchrony Financial. Unit Synchrony Bank becomes the exclusive provider of consumer financing from PayPal for 10 years under the deal.
Loretta Mester, president of the Federal Reserve Bank of Cleveland, says she expects inflation to reach 2% eventually, supporting a gradual increase in interest rates. She also says the aging population will affect unemployment and economic growth.
Legislation to ease the Dodd-Frank Act is the result of two weeks of negotiation between Republicans and moderate Democrats. The bill is expected to advance through the Senate in 2018.
Consumer Financial Protection Bureau Director Richard Cordray plans to step down this month, giving Congress an opportunity to create a bipartisan commission to lead the agency, says CBA President and CEO Richard Hunt. A commission would "establish transparency and bring a diversity of thought and additional insight to ensure rules are beneficial to consumers and the economy," Hunt says.
FSR President and CEO Tim Pawlenty spoke favorably about a Senate agreement that would tailor regulations for community banks, credit unions, and midsize and regional banks. "This bipartisan effort is directionally positive as it seeks to modernize regulations while protecting consumers and driving economic growth," he said, adding that FSR also supports using risk to determine systemic designations instead of arbitrary thresholds.
Clients prefer human advisers over robo-advisers because humans can offer trustworthiness, Nobel laureate economist Robert Merton says. He offers several tips on how advisers can enhance trust.
The Wall Street Journal editorial board discusses the resignation of Consumer Financial Protection Bureau Director Richard Cordray and what the future of the agency should look like. "In an ideal world, the Senate would take up reforms passed by the House this year that would replace the director with a bipartisan five-member commission subject to Congressional oversight and appropriations," the board writes.
Richard Cordray's resignation as head of the Consumer Financial Protection Bureau clears the way for a director to make policy changes, experts say. Rep. Jeb Hensarling, R-Texas, a rumored candidate, says Cordray's departure "is an excellent opportunity to enact desperately needed reforms."
Law professor Todd Zywicki; Rep. Jeb Hensarling, R-Texas; and Mark Calabria, Vice President Mike Pence's chief economist, are among possible candidates to replace Richard Cordray as director of the Consumer Financial Protection Bureau. The White House has not said when it will name a successor.