Banking
Top stories summarized by our editors
12/7/2018

"If you're highly successful, your achievements are obvious. It's more novel and inspiring for others to learn about your mistakes," says Harvard Business School Assistant Professor Alison Wood Brooks. Sharing past failures can actually improve the working relationships that a manager has with employees because it reduces resentment.

12/7/2018

Small banks are disappearing in America, and the Federal Deposit Insurance Corp. wants to change that, writes FDIC Chair Jelena McWilliams. The agency is improving the application process and asking for public comments on the issue, McWilliams says.

12/7/2018

The Federal Reserve has reportedly told Wells Fargo officials the bank needs stronger checks on management before an asset cap imposed after a sales scandal can be lifted. Bank officials did not comment on specific items but said the review process for their reform plan is ongoing.

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Reuters
12/7/2018

Members of three advisory boards told Consumer Financial Protection Bureau officials that it is difficult for banks to compete with nonbanks in developing artificial intelligence. AI comes with risks, and more oversight and research is needed, the members indicated.

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AI, Financial Protection Bureau, CFPB
12/7/2018

A bipartisan bill would ban lenders from requiring small businesses to sign confessions of judgment, which forfeit their right to a court hearing if they default on the loan. The Small Business Lending Fairness Act proposed by Sens. Sherrod Brown, D-Ohio, and Marco Rubio, R-Fla., could go before the Senate next year.

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Sherrod Brown, Marco Rubio, Senate
12/7/2018

Kathy Kraninger has received Senate confirmation as director of the Consumer Financial Protection Bureau and now has "the final say over virtually every financial institution in the country, as well as almost every financial decision Americans make," CBA President and CEO Richard Hunt says. "We look forward to working with Ms. Kraninger on commonsense regulations that protect consumers while also allowing our well-regulated banking system to serve families and small businesses," Hunt says.

12/7/2018

Eighty percent of employees participate in SunTrust Banks' financial-wellness program, which is important for attracting and retaining talent, CEO Bill Rogers says. A survey by the bank has found 43% of respondents do not have $500 saved for emergencies, Rogers says.

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CNN
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Suntrust Bank, Bill Rogers
12/7/2018

The Federal Deposit Insurance Corp. has given conditional approval to a new bank in North Carolina, the state's first in nine years. Community Bank of the Carolinas still needs approval from state regulators.

12/6/2018

The Federal Reserve's latest report on economic conditions, known as the Beige Book, says most of its 12 regions achieved satisfactory growth in November but also says there is "increased uncertainty" among businesses over the influence of US tariff policy. The report highlights rising costs for manufacturers and problems for farmers due to countertariffs imposed by China and others.

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Federal Reserve
12/6/2018

Rep. Maxine Waters, D-Calif., is expected to heavily scrutinize changes made by Consumer Financial Protection Bureau acting Director Mick Mulvaney if she becomes chair of the House Financial Services Committee. Waters likely will subpoena records from the agency and question Kathy Kraninger, who is expected to be confirmed as the CFPB's next director.