Bank officials say they are still waiting for a response from the Small Business Administration on applications for Paycheck Protection Program loan forgiveness they've submitted on behalf of clients. About 56,000 applications have been filed since the forgiveness portal opened on Aug. 10, according to the Government Accountability Office, while many borrowers are waiting to see whether Congress will authorize automatic forgiveness of loans less than $150,000.
Modern Money Murmurs: It sounds like the SBA is still waiting to hear from Congress on this one, too.
The Federal Reserve's plan to launch its FedNow instant payments system as early as late 2023 remains on track, despite potential disruptions from the coronavirus pandemic, said Kenneth Montgomery, chief operating officer at the Federal Reserve Bank of Boston. "We continue to hit all of our program milestones, even though we continue to work in a remote and collaborative environment," Montgomery said.
Two-thirds of active US fund managers failed to beat equity benchmarks in the past year, according to S&P Global, denting the assumption that they perform better through volatile market conditions.
Federal prosecutors say a Massachusetts man received $600,000 in Paycheck Protection Program loans for businesses that did not exist. Michael Moller, who is on probation for previous bank robbery convictions, allegedly applied for $4.7 million in loans and spent $30,000 of the money he received on a Las Vegas trip.
Wells Fargo officials stressed the bank's commitment to diversity after it was reported that CEO Charles Scharf said "there is a very limited pool of black talent to recruit from," in a memo. Former mortgage industry executive Ken Bacon responded saying that there is plenty of Black talent and adding, "If people say they can't find the talent, they either aren't looking hard enough or don't want to find it."
Sentral, a startup that rewards customers for their debit card purchases, was acquired by PNC Bank's tech incubator, Numo, for an undisclosed amount of money. The program could open up rewards programs to small businesses that don't have similar deals with credit card companies, says David Passavant, CEO of Numo.
Federal Reserve Board of Governors nominee Judy Shelton is facing questions about her support of the gold standard and past criticism of the central bank. Shelton was narrowly approved by the Senate Banking Committee but might not have enough support to be confirmed by the full Senate.
Sen. Sherrod Brown, D-Ohio, is pushing for legislation that strengthens US money laundering rules after a series of articles, dubbed the "FinCEN Files," accused banks of failing to stop illicit transactions. The House has already passed legislation that allows banks to use technology to spot suspicious activity and enables better data sharing among banks.
The Office of the Comptroller of the Currency reached settlements with three former Wells Fargo executives who were there during its unauthorized account scandal, including six-figure fines. A Wells Fargo spokesperson noted the bank has made changes and is "doing what's necessary to regain the trust of all stakeholders."
The Federal Reserve is now seeking public comment on its proposed changes to its Community Reinvestment Act rules framework. "We must ensure that CRA is a strong and effective tool to address ongoing systemic inequities," Fed governor Lael Brainard said.
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