Banks could face a double downgrade of their Community Reinvestment Act composite for "egregious" illegal behavior, according to a policy revision from Comptroller of the Currency Joseph Otting. The revision says banks that take "appropriate remedial actions" generally will not face penalties.
Jodi Richard will be promoted to vice chairwoman and chief risk officer at U.S. Bank, succeeding Vice Chairman Bill Parker, who will retire. Richard serves as chief operational officer and has 12 years of experience as the national bank examiner in the Office of the Comptroller of the Currency.
Great Southern Bank in Missouri is ending its business relationship with a store that sells hemp oil, citing risk posed by inconsistent state and federal marijuana laws and a need for clarity from the federal government. Cannabis is legal in some states but is illegal under federal law.
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.
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.
Team members need to know what's expected of them, with the leader communicating those asks clearly and often, write Karin Hurt and David Dye. Give people specific examples of expected behaviors, reinforcing them with reminders and acknowledgments every time they follow through correctly, they write.
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.
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.