The US Supreme Court will rule on the constitutionality of the structure of the Consumer Financial Protection Bureau in March. The court could also determine Title X of the Dodd-Frank Act is unconstitutional, which would abolish the CFPB.
Goldman Sachs' expansion into retail banking will be one of the key themes when the bank holds its first investor day on Wednesday. There are some concerns that Goldman's strategic pivot could result in tensions between the bank's old guard of traders and bankers and newer staff focused on retail banking and technology advancements.
Wells Fargo CEO Charlie Scharf stressed in an earnings call earlier this month that issues stemming from the bank's recent highly publicized scandals aren't likely to go away by the end of the year. "The time frames will be driven by when we accomplish that work and when the regulators are satisfied by it," Scharf said.
A new type of actively managed exchange-traded fund is thought to be capable of one day housing $7 trillion, and some of the world's biggest asset managers are fighting for a piece of the action. Under the new structure, ETFs would publish their holdings once per quarter rather than daily.
Cross-border payments startup Currencycloud raised $80 million in a funding round that included investments from BNP Paribas, Visa, the International Finance Corp., SBI Group and Siam Commercial Bank.
With new loan-accounting rules taking effect this year, Sallie Mae plans to divest $3 billion of its loans every year, thereby limiting the balance it must keep in reserves and freeing up more cash for share buybacks. The company's share price has soared 26% over the past two sessions as markets react to the new plan.
New research finds that bad banks are effective at improving balance sheets and increasing bank lending, but "only if asset segregation is combined with recapitalization of the bank's balance sheet." The research also finds that asset segregation is more effective with privately funded asset purchases, when assets are segregated into smaller shares and in countries with better legal systems.
MasterCard is opening an Intelligence and Cyber Center in Vancouver to focus on innovations in digital and cybersecurity, artificial intelligence and the internet-of-things. The center, which is expected to add 380 jobs, is being opened through a partnership with the Canadian government's Strategic Innovation Fund.
Online mattress retailer Casper set the high end of its IPO at a figure that would value the company at $768 million. The figure is not only another sign that the IPO market has lost much of its froth, but also means there is one less unicorn galloping around the startup world.
The Consumer Financial Protection Bureau has issued a notice defining abusive practices as those in which "the harm to consumers outweighs the benefit." The clarification will help firms meet customers' needs, said Richard Hunt, president and CEO of the Consumer Bankers Association.
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