The Labor Department plans to complete by September a fiduciary rule for retirement advice that takes into account a ruling by the 5th US Circuit Court of Appeals that vacates an earlier version. The department aims to make the rule compatible with the Securities and Exchange Commission's Regulation Best Interest.
The 18 banks required to undergo the 2019 Dodd-Frank Act stress test all passed easily despite tougher requirements enacted because of the strong economy. "The nation's largest banks are significantly stronger than before the crisis and would be well positioned to support the economy even after a severe shock," said Federal Reserve Vice Chairman Randal Quarles.
The number of enforcements at the Consumer Financial Protection Bureau is down 80% since 2015. Sen. Elizabeth Warren, D-Mass., has been critical of the agency's recent drop in enforcement, telling Director Kathy Kraninger, "If you had any decency, you'd either do your job or resign."
Ally Financial is building a 26-story office tower in Charlotte, NC, set to open in 2021 as it celebrates its 10-year anniversary as a digital bank. Ally has 1.8 million in retail deposit customers.
Only 19 of 161 commercial and retail banks saw significant returns or shifts in digital technology despite $1 trillion in investments in information technology over the last three years, according to a survey by Accenture. JPMorgan Chase is investing up to $11.4 billion this year in technology and is one of the 19 banks listed as digitally-focused.
President Donald Trump said he did not threaten to demote Federal Reserve Chairman Jerome Powell but maintained he has the power to do so. Trump continued his criticism of Powell on Sunday, saying, "I don't think he's done a good job."
Sen. Bernie Sanders, I-Vt., is proposing a tax on Wall Street that will eliminate $1.6 trillion in student loan debt. He is also proposing that community colleges, public universities and trade schools should be free.
A bill that would throw out confessions of judgement in loan disputes passed the New York Assembly after passing the state's Senate last week. Some lenders have borrowers sign confessions of judgement, which waive rights to fight a debt in court, and then they seize the borrowers' bank accounts when the borrowers default.
The Basel Committee on Banking Supervision is giving banks more flexibility in calculating leverage ratios by letting them offset margin against cleared derivatives. The committee says it will continue to monitor window dressing and will mandate disclosure of leverage ratios based on average and quarter-end valuation of securities financing transactions.
The EU won't exempt banks from global capital standards, says Olivier Guersent, head of the European Commission's financial-services arm. The EU stands by an agreement negotiated with regulators in Basel, Switzerland, Guersent says.
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