Bank stocks last week posted their best five-day gains since the 2016 presidential election. The KBW Nasdaq Bank index rose 7.7%, regaining a large portion of the losses felt during the fourth quarter of last year.
Because of the "exorbitant fees" Wells Fargo charges college students, the bank does not belong on college campuses, said Sen. Elizabeth Warren, D-Mass. The statement came after the Consumer Financial Protection Bureau found that among the 573 banks it examined, Wells Fargo charged college students the highest fees.
Student-loan servicer Navient said its employees never recommended more expensive payment plans to borrowers and said the Consumer Financial Protection Bureau can't identify a borrower to back the claim. Navient is asking for a dismissal of some of the claims alleged in a court case by the CFPB.
Banks have not experienced a drastic increase in assistance calls during the partial shutdown of the US government but are prepared for that to change as the shutdown continues, said Nick Simpson, a spokesman for the Consumer Bankers Association. More than 70 lawmakers sent a letter to the Department of Education asking officials to help those with student loans who are affected by the shutdown.
Understanding the customer wants to make informed decisions and finding opportunities that match the bank's core values have been parts of Bank of America's branding strategy, says CMO Meredith Verdone. The strategy has led to significant growth, including 26 million app users.
Bank OZK is a top lender for real estate projects and CEO George Gleason said during a bank earnings call that condo sales were strong. The bank is one of the top lenders for condo projects in Miami, New York and Los Angeles.
The demand for loans is increasing, leading to more competition among banks for deposits to offset the costs. The competition also includes digital-only banks that pay top market rates.
Sen. Elizabeth Warren, D-Mass., is seeking information on why Treasury Secretary Steven Mnuchin called the CEOs of six banks to discuss their liquidity in December during a time when the stock market was declining. Warren has also sent letters to the six executives asking for their notes about the calls.
The Small Business Administration has stopped approving loans during the partial government shutdown, and some businesses that were counting on receiving SBA-backed loans are struggling. Loans totaling an estimated $2 billion have been delayed.
Consumer Financial Protection Bureau Director Kathy Kraninger is asking Congress to grant the agency clear authority to supervise lending to military members. The Military Lending Act prohibits lenders from imposing an interest rate of more than 36% on loans to service members, but former CFPB acting Director Mick Mulvaney rolled back compliance oversight last year, saying the agency did not have proper authority.
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