Bank loan officers responding to a Federal Reserve survey cited unattractive terms for borrowers and lenders as reasons for the sluggish uptake of the Fed's Main Street Lending Program. "Major fractions of banks of all sizes indicated that the loss sharing with the MSLP in the event of a default was too uncertain, and that the required certifications and covenants were too restrictive for the bank," the Fed said.
German fintech unicorn Deposit Solutions, which has the backing of venture capitalist Peter Thiel, will launch its savings platform in the US as SaveBetter.com. The banking-as-a-service platform allows users to make deposits across a portfolio of banks.
Amazon has entered the race to use biometrics for contactless payments with its palm-scanning payment and authentication service Amazon One. Several banks, including BNP Paribas, Societe Generale and NatWest, have tested biometric payments solutions, and Apple is exploring similar applications of the technology.
A federal judge sentenced former Wall Street trader Paul Rinfret, 71, to more than five years in prison after Rinfret pled guilty to securities and wire fraud in a scheme that cheated investors out of $20 million. Rinfret sold investors limited partnership interests in Plandome Partners LP, saying he would use an algorithm to trade futures contracts linked to the S&P 500, but spent most of the money on himself.
The Federal Trade Commission, the Consumer Financial Protection Bureau and more than 50 federal and state agencies are coordinating to investigate aggressive debt collection tactics in an effort called "Operation Corrupt Collector." The task force's goals include cracking down on the collection of "phantom debt."
Several banking groups are asking lawmakers to intervene in the Office of the Comptroller of the Currency's plans to grant bank charters to payments firms that don't take deposits. "We oppose any effort by the OCC to offer a payments charter, particularly one that would ultimately grant these companies access to the Federal Reserve payments system -- the most critical part of our country's financial infrastructure -- and its corresponding federal safety net without protecting the financial system and consumers from the concomitant increase in systemic risk," the groups wrote in a letter to lawmakers.
Many people understand that blockchain will change how businesses operate in the future, but few understand how. Here's what you need to know.
Harit Talwar, who led the creation of Goldman Sachs' consumer banking app Marcus, is leaving his post as head of the bank's global consumer unit, sources said. He will reportedly be succeeded by Omer Ismail.
JPMorgan Chase has instructed thousands of employees in its consumer division to plan on working remotely until next year, internal memos show. The directive reportedly does not apply to branch workers and some operations staff.
Recent market volatility is a warning to investors of the limits of central bank support in a market where risk diversification is increasingly hard to find, writes Mohamed El-Erian.
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