Industry News
Banking
Top stories summarized by our editors
10/22/2020

The New York Department of Financial Services has issued a conditional "BitLicense" that lets PayPal accept cryptocurrencies from consumers. PayPal says it can overcome difficulties posed by cryptocurrencies by settling transactions in fiat money.

10/22/2020

Hong Kong's Securities and Futures Commission has imposed its highest-ever fine of $350 million on Goldman Sachs for its role in the 1MDB scandal. The fine is in addition to a reported $2.8 billion settlement expected to be reached with the US Department of Justice and the $2.5 billion settlement the bank reached with the government of Malaysia.

Modern Money Murmurs: Ouch. The fines just keep piling up. I hope those fees were worth it at the time.

10/22/2020

Banks are preparing for heightened regulatory scrutiny over their role in facilitating loans issued through the federal Paycheck Protection Program. "They are gearing up for years of requests from regulators and there's still reputational risk from PPP fraud even if they did all the right things to follow program rules," says management consultant Vivian Merker.

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Reuters
10/22/2020

JPMorgan Chase will launch its Chase Business Complete Banking with QuickAccept service, which credits merchant accounts with payments the same day they are made, without a fee. The service, which is available to businesses with Chase accounts, is aimed at competing with payments firms like Square and PayPal.

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The Associated Press, CNBC
10/22/2020

No bank had more than a 0.80% charge-off ratio in the third quarter, but more losses are expected later this year as economic strains from the pandemic continue. Banks have built reserves that can handle the increase in charge-offs, according to Chris Marinac, director of research at Janney Montgomery Scott.

10/22/2020

KeyBank is ending its indirect automobile lending and will devote more resources to its mortgage and student loan programs. The bank will announce a plan to restructure its branch network in January.

10/22/2020

Central banks were broadly skeptical of digital currencies until Facebook's Libra proposal forced them to re-evaluate their views and consider developing their own versions. With several central bank chiefs now forecasting they will become a reality, Alastair March and Carolynn Look examine the various efforts being made toward their development.

10/22/2020

The Federal Reserve's monetary policy is doing a lot of good but it needs to be supported by continued fiscal aid to achieve a "broad-based and inclusive recovery," said Federal Reserve Governor Lael Brainard. "Premature withdrawal of fiscal support would risk allowing recessionary dynamics to become entrenched, holding back employment and spending, increasing scarring from extended unemployment spells, leading more businesses to shutter, and ultimately harming productive capacity," she said.

10/21/2020

Goldman Sachs will agree to pay a $2.8 billion penalty in a settlement expected to be finalized this week with the US Department of Justice over the 1MDB bribery allegations, sources say. In July, the bank agreed to pay at least $2.5 billion to settle the affair with the government of Malaysia.

More Summaries:
US Department of Justice
10/21/2020

Fitch Ratings and Moody's Investors Service say they could be prompted to review the US credit rating if there is not a smooth transition or retention of power after the November election, while Standard & Poor's has already cited political factors as a hindrance to the country's rating. Amid mixed messages from President Donald Trump on his intentions if he loses the vote, Fitch analyst Charles Seville says the nation's rating will hinge on processes "for the transfer of power that are broadly accepted and executed."

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Reuters
More Summaries:
Standard & Poor