Industry News
Banking
Top stories summarized by our editors
4/8/2021

The Consumer Financial Protection Bureau has proposed a 60-day delay to two debt collection rules put forward at the end of the Trump Administration that address how collectors can communicate with debtors and what disclosures they need to make. The additional time would also allow firms to review and apply the rules, the CFPB said.

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Reuters, CNBC
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Trump administration
4/8/2021

Zachary Horwitz, an actor also known as Zach Avery, is facing charges over an alleged $690 million Ponzi scheme and is also being pursued in civil court by the Securities and Exchange Commission. Horwitz is said to have defrauded investors into taking stakes in licensing deals of films he did not own.

Modern Money Murmurs: Hey now, let's not jump to conclusions. Maybe he's a method actor preparing for his next role as a young Bernie Madoff and this is all just a big misunderstanding ...

4/8/2021

Eastern Bankshares will pay $642 million in cash for Century Bancorp in a deal expected to close in the fourth quarter. The price tag represents a premium of 175% of Century's book value.

4/7/2021

A Supreme Court ruling last week has given financial institutions some relief on lawsuits that claim they violated the Telephone Consumer Protection Act by using robocalls to contact customers. "The bottom line is this helps protect banks' ability to communicate with their customers, and better protect them from fraud as well," said Lauren Bianchi, a spokesperson for the Consumer Bankers Association.

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American Banker
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Supreme Court
4/7/2021

M&T Bank's planned acquisition of People's United, which is expected to close later this year, materialized in only a couple months. M&T Chairman and CEO Rene Jones first spoke to People's CEO Jack Barnes about a possible deal on Dec. 23, and by Feb. 20, both banks' boards had approved the $7.6 billion deal.

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American Banker
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People's United, Rene Jones
4/7/2021

Consumers turned to digital banking during the pandemic and will continue using digital options because it has improved their financial lives, according to Mark Monaco, head of enterprise payments at Bank of America. Monaco says BofA's track record of investing in digital innovation has left the bank in a strong position to meet the shift in demand from consumers.

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PaymentsJournal
4/7/2021

Executives at smaller banks have a positive outlook on the economy and their banks' profitability, according to a quarterly survey by the Conference of State Bank Supervisors. In an index of their responses, bankers' profitability outlook jumped from 62 last year to 105 in the most recent survey.

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Reuters
4/7/2021

Lawmakers will hold hearings with executives at top US banks on climate change and racial equity in the coming months but Republicans say banks should not be used to advance social policy. "Republicans don't think financial services providers should be used as tools to advance public policy objectives, saying it's just not appropriate, it's not their role, they should be focused on generating a profit and returns for their investors, not on a social justice agenda," says Dan Crowley, a partner at K&L Gates.

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American Banker
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Dan Crowley
4/6/2021

Smart leaders manage conflict well by reframing it as a misalignment and using their boss as a mentor and guide, among other tactics, writes Marlene Chism. "Although no leader enjoys conflict, competent leaders understand that conflict is not the problem: Mismanagement is," she writes.

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SmartBrief/Leadership
4/6/2021

Clubhouse, a fast-growing social audio app, is rolling out a facility that will enable listeners to send money instantly and directly via Stripe to individual creators of content on the app, which could prove to be a breakthrough in social media monetization. The app aims to solve a problem perceived by Clubhouse that "creators were building a big audience on certain social media platforms but then having to move off of those platforms to actually monetize that audience," says Clubhouse influencer Josh Constine.