The Federal Reserve is expected to leave the interest rate unchanged as Fed Chair Jerome Powell has said the economy would need to show signs of weakening before the rates would be lowered again. The Fed will wrap up a two-day meeting today with the interest rate announcement expected around 2 p.m.
The Consumer Financial Protection Bureau is reviewing 190,000 comments made about possible changes to its small-dollar lending rule and will issue a final rule in April 2020, according to CFPB Director Kathy Kraninger. The agency also will release a supplemental debt collection rule early next year relating to disclosures of debt when the statute of limitations has expired.
Citi, Credit Suisse, Goldman Sachs and JP Morgan have teamed up with AccessFinTech to launch a new platform focused on settlements and multiple asset classes, identifying and reducing failed transactions.
Citizens Bank executive Brad Conner will retire from his post as head of consumer banking in March and Brendan Coughlin, the current chief of consumer deposits and lending, has been named as his successor. Conner is a past board chair of the Consumer Bankers Association and is a member of the board of directors.
A law firm challenging the constitutionality of the Consumer Financial Protection Bureau said the only way to fix it is to eliminate the provision in the Dodd-Frank Act that created it. Seila Law's CFPB challenge will be heard by the US Supreme Court in March and the government is seeking only to have a clause removed that prohibits the president from firing the CFPB director at will.
Bills by Sen. John Kennedy, R-La., and Rep. Chuy García, D-Ill., aimed at stopping commercial companies from receiving industrial loan company charters could set up another debate among lawmakers about the issue. Congress failed to pass legislation 10 years ago when Walmart applied for an ILC and the latest interest seems to be sparked by tech-firm Rakuten's ILC application.
The banking industry has strengthened its oversight of cybersecurity risk but banks should make sure they are ready for an internal attack, according to the Office of the Comptroller of the Currency's semi-annual risk report. Banks' internal systems are not the only target as criminals can use staff, bank customers and other third parties in their hacking attempts.
Plans by tech companies to offer banking products could help reached the unbanked and underbanked, but those efforts also pose operational and liquidity risks, according to the Financial Stability Board. The FSB is also concerned about how fast the tech giants could enter the banking industry and said, "Competition from BigTech firms might reduce the resilience of financial institutions, either by affecting their profitability or by reducing the stability of their funding."
Texas Capital Bancshares Inc. and Independent Bank Group Inc. announced plans to merge and operate as Texas Capital at Independent's new headquarters located in McKinney. The $5.5 billion all-stock deal will create the largest Texas-based bank.
The first of three Chase Bank branches opened in Savannah as the bank continues its expansion into Georgia. The bank has added a branch in the north Georgia city of Athens and is adding others in the metro Atlanta area.
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