Industry News
Banking
Top stories summarized by our editors
7/30/2021

The Financial Crimes Enforcement Network would receive an additional $63 million if a spending plan passed by the House gets signed into law. The agency's total budget for fiscal year 2022 would be $190 million.

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Law360
7/29/2021

US gross domestic product grew 6.4% in the second quarter, a slight increase from Q1 but well below economists' forecasts of around 8.4%. Rises in personal consumption, nonresidential fixed investment, government spending and exports are cited as contributing to the gain.

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CNBC
7/29/2021

The Securities and Exchange Commission is preparing a proposal that would require public companies to disclose climate change risk when reporting to investors. Chair Gary Gensler says he expects the proposal to be presented before year-end. "Investors today are asking for that ability to compare companies with each other," Gensler says. "Generally, I believe it's with mandatory disclosures that investors can benefit from that consistency and comparability."

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SEC, SEC
7/29/2021

Some New York-based financial firms considered relocating their offices to the suburbs during the coronavirus pandemic lockdowns, but the city's reopening has led them to ramp up return-to-office plans at their original hubs.

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Bloomberg
7/29/2021

The initial public offering for Robinhood Markets priced at the bottom of its $38-to-$42 per-share target range, raising around $2 billion and giving the company a valuation in the vicinity of $32 billion. The company and the underwriters decided to price the offering conservatively in an effort to help shares do well in first-day trading, sources said.

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Robinhood Markets
7/29/2021

BNY Mellon Investment Management is preparing to launch its first active exchange-traded fund, the Concentrated International ETF, which will hold shares of 25 to 30 companies in developed markets outside the US.

7/29/2021

A blog post from the International Monetary Fund notes that less stable economies could be tempted to accept cryptocurrencies as legal tender, and acknowledges that they could bring cheaper and faster payments, give financial access to unbanked people and improve cross-border transactions. However, the IMF says these advantages are outweighed by the disadvantages, including possible legal issues, price instability, the currencies' ability to be used for illegal activities and environmental concerns.

7/29/2021

Katherine Venice, founder of The Ethical Capitalism Group, writes that financial institutions must use their leverage to help combat an erosion of democratic principles in the US. "Capitalism without democracy is oligarchy, with winners and losers determined by autocrats," writes Venice.

7/29/2021

Legislation drafted by Democratic lawmakers aimed at the financial services industry are unlikely to make headway, experts say. Consumer Bankers Association President and CEO Richard Hunt says that such proposals would not be needed, as consumer demand has driven recent changes across the financial industry. "Banking is a highly competitive market with nearly 5,000 institutions for consumers to choose from. To meaningfully compete, banks must respond to the evolving demands of their customers, or they risk losing market share to another financial institution whose products and services better suit them," Hunt says.

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American Banker
7/29/2021

The Small Business Administration on Wednesday announced plans to launch a platform on Aug. 4 that will allow businesses that borrowed $150,000 or less through the Paycheck Protection Program to apply directly to the SBA for forgiveness. "As the Paycheck Protection Program concludes, the creation of a new PPP forgiveness platform from the SBA will allow more small businesses to focus their time and resources on successfully reopening, while also providing lenders the choice to retain oversight of their customer relationships," said Richard Hunt, president and CEO of the Consumer Bankers Association.

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American Banker